Bitcoin price analysis is bearish today.BTC/USD saw another test of $42,500 overnight.Sellers slowly taking over momentum.
Bitcoin price analysis is bearish today as we have seen the $42,500 resistance prevent further upside again overnight. Therefore, BTC/USD needs another retracement and higher low to be set first.
Cryptocurrency heat map. Source: Coin360
The market has traded with mixed results over the last 24 hours. The leader, Bitcoin, gained just 0.03 percent, while Ethereum lost 0.92 percent. The rest of the market has seen similar, low volatility moves.
Bitcoin price movement in the last 24 hours: Bitcoin retests $42,500 major resistance, fails to break higher
BTC/USD traded in a range of $41,644.61 – $42,316.55, indicating mild volatility over the last 24 hours. Trading volume has declined by 18.34 percent, totaling $20.36 billion, while the total market cap trades around $792.2 billion, resulting in a dominance of 42.14 percent.
BTC/USD 4-hour chart: BTC looks to retrace next?
On the 4-hour chart, we can see the Bitcoin price slowly pivoting as the $42,500 mark has offered strong resistance, likely leading to another retracement later.
BTC/USD 4-hour chart. Source: TradingView
Bitcoin price action has seen a steady advance over the week. After a fake breakout below $38,000 on the 13th of March, BTC/USD finally gathered enough momentum to break out of the previous consolidation area.
Initially, bulls were rejected below $42,000 after a quick spike higher. However, more upside followed, leading to a higher low set around $40,400 on the 18th of March.
The newly found low was enough for bulls to push the Bitcoin price even further. This time, the $42,500 previous major resistance was reached, however, not broken.
The second retest of the resistance was seen overnight to today, with another failure to move higher. Therefore, we assume BTC/USD has set local high as of now, and retracement should follow later today.
Bitcoin price analysis: Conclusion
Bitcoin price analysis is bearish today as we have seen the $42,500 resistance prevent further upside once more. Likely BTC/USD needs another retracement before more upside can be tested next week.