Bitcoin price analysis is bullish today as we have seen a strong drop below the previous low and support found at $36,500. Therefore, BTC/USD will likely soon reverse and retrace some of the loss.
Cryptocurrency heat map. Source: Coin360
The market has seen bullish momentum over the last 24 hours. Bitcoin still trades with a slight gain, while Ethereum with a 3.13 percent gain. The rest of the top altcoins have performed even better.
Bitcoin price movement in the last 24 hours: Bitcoin peaks at $40,000, drops over 8 percent
BTC/USD traded in a range of $37,257.79 to $39,902.95, indicating substantial volatility over the last 24 hours. Trading volume has increased by 19.42 percent, totaling $39.15 billion, while the total market cap trades at $709.5 billion, resulting in market dominance of 41.65 percent.
BTC/USD 4-hour chart: BTC spikes to $36,500
On the 4-hour chart, we can see a strong lower low set over the second half of the day with a slight reaction at the $36,500 mark, indicating potential retracement later.
BTC/USD 4-hour chart. Source: TradingView
Bitcoin price has seen increased volatility over the past days. After further consolidation in an increasingly tighter triangle pattern, BTC/USD broke past previous local resistance levels and spiked as high as $40,000 major resistance.
This price action development sent a strong bullish signal across the market yesterday, indicating that another higher low could soon be set and more upside tested later in the week.
However, after some consolidation overnight, sharp decline began later today. Bitcoin price quickly lost over 7 percent until some support was found at $36,500.
Since the previous low at $37,500 was broken in a clear way, BTC/USD has turned bearish again. Likely more downside will follow as a result of it after retracement later in the week.
Bitcoin price analysis: Conclusion
Bitcoin price analysis is bullish today as we have seen a strong lower low set at $36,500 and a slight reaction higher. Therefore, BTC/USD is likely ready to move higher and regain some of the loss.