TL;DR Breakdown
Bitcoin price analysis is bearish today.BTC/USD saw consolidation overnight.Spike higher and rejection was seen during the afternoon.
Bitcoin price analysis is bearish today as we have seen a strong spike above $42,000 met with strong selling pressure. Therefore, we expect BTC/USD to drop lower later today and look to set a higher low.
Cryptocurrency heat map. Source: Coin360
The market has declined over the last 24 hours as rejection for further upside was seen across the board. The leader, Bitcoin, lost 0.54 percent, while Ethereum by 1.49 percent. The rest of the market followed close by.
Bitcoin price movement in the last 24 hours: Bitcoin tests further upside, gets immediately rejected
BTC/USD traded in a range of $41,141.40 – $42,126.30, indicating a moderate amount of volatility over the last 24 hours. Trading volume has declined by 16.05 percent, totaling $25.75 billion, while the total market cap trades around $784.69 billion, resulting in a dominance of 41.08 percent.
BTC/USD 4-hour chart: BTC returns below $41,500
On the 4-hour chart, we can see the Bitcoin price starting to push lower, likely leading to more downside by the end of the day.
BTC/USD 4-hour chart. Source: TradingView
Bitcoin price action has seen signs of reversal so far this week. After another short spike lower at the beginning of the week, BTC/USD found support at $38,500.
From there, a strong rally set a higher local high above the $40,600 previous local resistance on 19 April 2022. After some consolidation, the next resistance at $41,500 was broken a day later.
The third spike followed today, briefly pushing above $42,000 next resistance. Since the Bitcoin price action got immediately rejected, we assume selling pressure has returned, and retracement will follow next.
Bitcoin price analysis: Conclusion
Bitcoin price analysis is bearish today as we have seen clear rejection for upside over the last hours. Therefore, BTC/USD is expected to drop lower and look to set a higher low over the next days.
While waiting for Bitcoin to move further, see our articles on Web3 Startups, How to buy Terra, and How to stake Algorand.
