Bitcoin price analysis is bullish today.BTC/USD lost 9 percent overnight.Support found around $39,000.
Bitcoin price analysis is bullish today as we have seen swift retracement to $39,000 overnight met with strong support over the last hours. Therefore, we assume BTC/USD has set a higher low and is ready to reverse later in the week.
Cryptocurrency heat map. Source: Coin360
The market has seen a strong decline over the last 24 hours. The leader, Bitcoin, lost 7.5 percent, while Ethereum followed with a 5.64 percent loss. The rest of the top altcoins followed close by.
Bitcoin price movement in the last 24 hours: Bitcoin swiftly drops after peaking at $42,500 yesterday
BTC/USD traded in a range of $38,832.94 – $42,289.88, indicating strong volatility over the last 24 hours. Trading volume has declined by 6.54 percent, totaling $30.84 billion, while the total market cap trades around $740 billion, resulting in a dominance of 42.45 percent.
BTC/USD 4-hour chart: BTC looks to set higher low?
On the 4-hour chart, we can see the Bitcoin price action finding new support at $39,000, likely indicating an upcoming reversal.
BTC/USD 4-hour chart. Source: TradingView
Bitcoin price action has bottomed out over the weekend after a sharp drop of over 17 percent from the $45,600 previous high. The last attempt to break lower was also quickly rejected on Monday, leading back to $39,500 resistance.
Early yesterday, bulls quickly gained momentum, breaking past the local resistance. Later in the day new strong high was set around $42,500, indicating bullish momentum returning. However, the $45,000 previous resistance is still the mark to be broken for a more serious confirmation for trend reversal.
Overnight to today, swift retracement pushed the Bitcoin price back to $39,000, leading to believe a higher low is set. Therefore, if we see more upside over the next 24 hours, likely further higher high will be set, indicating a shift in the overall market sentiment.
Bitcoin price analysis: Conclusion
Bitcoin price analysis is bullish today as we have seen a strong break higher followed by a retracement to $39,000. As the downside currently gets rejected, we assume BTC/USD has set a higher low and is ready to push higher again later in the week.