Bitcoin price analysis is bearish today.BTC/USD saw a strong spike to $48,000 overnight.A slow retest of the previous high is currently in progress.
Bitcoin price analysis is bearish today as we have seen bulls push the market above $45,000 previous high, and $46,000 next resistance until some rejection was seen just below $48,000. Therefore, BTC/USD likely will reverse after the second retest of the $48,000 mark and look to finally retrace some of the gains.
Cryptocurrency heat map. Source: Coin360
The market has continued higher over the last 24 hours. The leaders, Bitcoin and Ethereum, gained almost 6 percent with quick spikes higher overnight. The rest of the top altcoins moved to even higher gains meanwhile.
Bitcoin price movement in the last 24 hours: Bitcoin spikes to $48,000, runs out of momentum
BTC/USD traded in a range of $44,768.36 – $47,710.15, indicating strong volatility over the last 24 hours. Trading volume has increased by 11.84 percent, totaling $41.67 billion, while the total market cap trades around $901.59 billion, resulting in a marked dominance of 42.09 percent.
BTC/USD 4-hour chart: BTC looks to retrace next?
On the 4-hour chart, we can see the second attempt resulting in another rejection, indicating that the Bitcoin price action is likely headed for a reversal next.
BTC/USD 4-hour chart. Source: TradingView
Bitcoin price has consolidated over the weekend, after moving to $45,000 resistance on Friday. Clear rejection was initially seen, resulting in a consolidation forming until late yesterday.
Close to midnight, BTC/USD rapidly spiked higher, breaking past $46,000 next resistance without much hesitation. The rapid advance continued as high as the $48,000 mark, indicating that bulls finally have exhausted their momentum.
Therefore, retracement should soon follow, considering the market structure formed over the past week. Likely, the Bitcoin price will look to retest previous resistance levels as support before more upside can be seen.
Additionally, in case the $45,000 mark gets broken to the downside, a lot more substantial retracement should follow, however, as long as it holds, more upside is expected by the end of the week.
Bitcoin price analysis: Conclusion
Bitcoin price analysis is bearish today as bulls are likely finally exhausted around the $48,000 next major resistance. Therefore, we expect BTC/USD to retrace soon, potentially retesting $45,000 – $46,000 previous resistance as support.