Cryptos are following a new uptrend in February. Bitcoin price printed a solid bullish candle on its weekly chart, indicating a possible bottom of its current trend, according to analyst Jonathan Morgan. Ethereum price easily rejects the downtrend with a spectacular weekly close and bullish candlestick reversal pattern. Ripple price is forming a bottom. A retest of $0.75 is coming soon for Ripple.
Bitcoin and Ethereum predictions
Bitcoin price has created a bullish hammer pattern on its weekly chart, giving the bulls hope that the last eleven-week downtrend is over. Ethereum price surged more than 18% from last week’s lows, shocking short sellers and starting a strong short-lived decline. XRP price continues to outperform BTC and ETH but is positioned for a significant price increase.
Bitcoin price has reached major support, with BTC targeting a return to $42,000. Bitcoin price action was somewhat annoying last Friday. For most of the week, Bitcoin struggled to bounce back inside the Cloud and above the bottom of the Ichimoku Cloud (Senkou Span B) at $37,250. The combination of bullish pull pattern and support hold on Senkou Span B gives bulls a high probability of swing low on this current pullback. Bitcoin price needs to close above the current weekly candlestick Senkou Span B. The key resistance area ahead of BTC is at the top of the Ichimoku Cloud ($41,500), in the $41,000 to $42,000 area where the 61.8% Fibonacci retracement ($41,165) is located.
Ethereum price recovered strongly last week, giving impetus to a new uptrend. The Ethereum price action last week was one of the biggest bearish weekly candlesticks in recent memory. At one point in the past week, short sellers pushed Ethereum around 16% and below the Ichimoku Cloud, destroying the long position and threatening the Ideal Bearish Ichimoku Breakout setup. Ethereum printed a rare and strong bullish candlestick pattern known as the Dragonfly Doji. From a psychological perspective, it’s easy to see why short sellers were shocked by Ethereum’s performance over the past week. Oscillator conditions continue to oversold conditions with a major bullish reversal soon.
Composite Index breaks out from levels not seen since July 2019. Also, the Optex Bands oscillator entered severely oversold conditions for the first time since September 2019. At the same time, the Relative Strength Index remains in bull market conditions and has bounced off the last oversold level at 40. The upside potential is likely limited to the $3,300 value area where the $38.2 Fibonacci retracement and weekly Tenkan-Sen are present. Any weekly close below the Cloud ($2,350) triggers the Ideal Bearish Ichimoku Breakout and positions Ethereum price for a quick move to the $1,800 value area, according to Morgan.