Bitcoin price analysis is bearish today.BTC/USD continued lower yesterday.Support at $42,000 broken overnight.
Bitcoin price analysis is bearish today as we expect more downside to follow after a strong decline over the last 24 hours. Likely BTC/USD will look to test previous major resistance at $39,500 over the weekend in an attempt to set another higher low.
Cryptocurrency heat map. Source: Coin360
The market has continued in the red over the last day. The leader, Bitcoin, lost 4.54 percent, while Ethereum posted a more substantial loss of 5/72 percent. Most of the top altcoins have followed with similar losses.
Bitcoin price movement in the last 24 hours: Bitcoin breaks $42,000, continues lower
BTC/USD traded in a range of $40,839.41 – $42,689.91, indicating substantial volatility over the last 24 hours. Trading volume has increased by 20.32 percent, totaling $30 billion, while the total market cap trades around $776 billion, resulting in a dominance of 42.76 percent.
BTC/USD 4-hour chart: BTC/USD on its way to $40,000
On the 4-hour chart, we can see a steady decline for the Bitcoin price, likely leading towards the previous resistance area around $39,500-$40,000 to be tested next.
BTC/USD 4-hour chart. Source: TradingView
Bitcoin price action has seen a strong gain this week. After an initial move above $39,500 previous resistance, BTC/USD quickly set a strong higher low on the 28th of February.
From there, bulls quickly pushed the market to new highs, resulting in an increase of 20 percent in a couple of days. Eventually, more upside was strongly rejected around the $45,600 mark on Wednesday, leading to a slow reversal.
Selling pressure increased yesterday, leading the Bitcoin price action below $42,000 support by the end of the day. Overnight, more downside was tested, with BTC/USD moving past the $41,000 mark later today.
Overall, the current retracement should follow over the next 24 hours. If support can be found around $39,500-$40,000 previous support, we should see another strong higher low set before more upside returns next week.
Bitcoin price analysis: Conclusion
Bitcoin price analysis is bearish today as we have seen a steady decline continue over the last 24 hours. Therefore, we expect BTC/USD to retrace even further and move towards the $40,000 to set another higher low over the weekend.