Technical Analysis is a trading tool that investors often use to forecast the future prices. It is different from fundamental analysis in that technical value does not attempt to evaluate an asset’s intrinsic value, but uses the price chart to predict prices in the future. In this article, technical analysis of both Bitcoin and Ether will be conducted using Ichimoku Cloud, Relative Strength Index (RSI), and Moving Average Convergence Divergence (MACD). With these three technical analysis tools, the price of Ether and Bitcoin for the next two to three weeks will be forecasted. Note that both graphs use 4-hour intervals. 4-hour intervals are best for predicting prices in two to three weeks.
There are several aspects of Bitcoin that we can tell from this graph. First, we can see from the Ichimoku Cloud that BTC is bullish for the next two to three weeks. A green cloud on the graph indicates a bullish trend, while a red cloud indicates a bearish trend. We can also see that BTC is clearly overbought on November 27th – that’s indicated by the fact that the purple RSI line is above 70. However, it seems to have cooled off a bit and we can see that in the price of BTC. MACD also indicates a general bullish trend as both lines are above zero. Ultimately, a bullish trend from Bitcoin in the next two to three weeks is anticipated.
The price graph of Ether is more interesting than the previous one. The green Ichimoku cloud indicates bullishness. However, those final candles on the graph are touching the bottom of the green cloud and appear to have slightly bounced off of it. That’d suggest that $400 is a bottom for ETH for the next two weeks. Looking at the RSI of ETH, it appears as though ETH is neither overbought nor oversold. In fact, considering it is crypto it might be somewhat oversold. This is good, as it suggests that ETH will go either sideways or be bullish for the next two weeks or so. The MACD of ETH is a bit more interesting, as both lines are below zero. This signals downward momentum. Because the two other indicators are indicating bullishness, this could mean that the ETH price could be sideways for the next two weeks, or follow the overall market trend average.
Ultimately, the graph of BTC is indicating bullishness within the next two to three weeks. BTC has support around $9000 and $8800. Assuming it stays above those two support lines for the next two to three days, BTC should be bullish and should stay above $10,000 in the next two to three weeks. On the other side, ETH, it’s a bit more interesting. Both the RSI and Ichimoku cloud of ETH suggest bullishness, while the MACD suggests downward pressure. ETH has a price floor at $400. If it breaks below that and reaches the $395 zone (previous resistance, current support) in the next two to three days, that’d suggest a trend reversal and a bearish trend for ETH for the next two weeks. However, if it stays above $400 expect it to go somewhat sideways and reach at least $500 sometime within the next two weeks. Happy trading!