Bitcoin price analysis is bullish today as we expect the current consolidation to end with a retracement. Likely BTC/USD will look to retest previous support as resistance at the $37,500 mark.
Cryptocurrency heat map. Source: Coin360
The market has turned bearish over the last 24 hours. The leader, Bitcoin, lost 0.83 percent, while Ethereum 0.76 percent. Meanwhile, Terra (LUNA) is the worst performer with an almost 10 percent loss.
Bitcoin price movement in the last 24 hours: Bitcoin consolidates as bearish momentum is exhausted
BTC/USD traded in a range of $35,769.94 – $36,216.95, indicating mild volatility over the last day. Trading volume has declined by 50.75 percent, totaling $25.34 billion, while the total market cap trades around $686 billion, resulting in a dominance of 41.57 percent.
BTC/USD 4-hour chart: BTC ready to retrace?
On the 4-hour chart, we can see bulls slowly taking over the momentum as Bitcoin has found support at $35,500.
BTC/USD 4-hour chart. Source: TradingView
Bitcoin price action saw a higher high set early in the week as the $39,000 mark was broken on 4 May 2022. Further upside followed quickly until the major resistance at $40,000 was reached.
BTC/USD reversed quickly from there, dropping over 10 percent in less than 24 hours until the $35,500 mark. Yesterday the newly found support was retested again with another rejection, indicating that sellers are exhausted again.
This Bitcoin price action development indicates that a reversal should soon form. Likely the $36,500 resistance will soon be broken, and the $37,500 next major resistance will be reached early next week.
Bitcoin price analysis: Conclusion
Bitcoin price analysis is bullish today as we have seen rejection for further downside turn into consolidation over the last 24 hours. Therefore, BTC/USD is ready to reverse and retrace to retest previous support as resistance around $37,500.