Bitcoin price analysis is bearish today.BTC/USD spiked past $42,500 resistance this morning.New local high set at $43,400.
Bitcoin price analysis is bearish today as we expect another retracement to follow after a strong spike above the $42,500 resistance. Likely BTC/USD will return below the previously broken resistance and look to set another higher low before more upside is tested.
Cryptocurrency heat map. Source: Coin360
The market has traded in the green over the last 24 hours, with Bitcoin up by over 4 percent. Ethereum follows with a 3.26 percent gain, while the rest of the top altcoins have seen an even better performance.
Bitcoin price movement in the last 24 hours: Bitcoin tests further upside, faces rejection
BTC/USD traded in a range of $40,921.17 – $43,124.71, indicating strong volatility over the last 24 hours. Trading volume has increased by 32.18 percent, totaling $31.98 billion, while the total market cap trades around $808.73 billion, resulting in a dominance of 41.93 percent.
BTC/USD 4-hour chart: BTC looks to retrace
On the 4-hour chart, we can see bearish momentum returning for the Bitcoin price as further upside currently gets rejected.
BTC/USD 4-hour chart. Source: TradingView
Bitcoin price action has seen steady gain over the past week. From the $38,000 support, a gain of over 12 percent was seen last week, indicating good bullish momentum in the market.
After the $42,500 mark was reached on the 18th of March, BTC/USD retraced to set the current local low at around $41,000. From there, a strong spike higher overnight took the market to even further upside at $43,400.
Therefore, the overall market is still bullish, and we can expect more upside to follow later in the week. However, another higher low needs to be set first as bulls are currently exhausted once again.
Bitcoin price analysis: Conclusion
Bitcoin price analysis is bearish today as we expect more downside to follow after another higher high was set overnight. BTC/USD should retrace and set another higher low next before further upside can be tested later in the week.