Bitcoin price analysis is bullish today as we have seen a drop to $29,000 being met with strong support and rejection for further downside. Therefore, BTC/USD should see further upside over the upcoming days, likely above the $31,000 resistance.
Cryptocurrency heat map. Source: Coin360
The market has seen bearish momentum over the last 24 hours. The leader, Bitcoin, lost 3.22 percent, while Ethereum 5.05 percent. Meanwhile, the rest of the top altcoins have seen even further decline.
Bitcoin price movement in the last 24 hours: Bitcoin fails to break $29,000
BTC/USD traded in a range of $28,786.59 to $30,259.06, indicating a moderate amount of volatility over the last 24 hours. Trading volume has increased by 14.19 percent, totaling $29.47 billion, while the total market cap traders around $558 billion, resulting in a market dominance of 44.55 percent.
BTC/USD 4-hour chart: BTC ready to reverse?
On the 4-hour chart, we can see a quick spike below $29,000 benign met with a reaction higher, indicating that further tests of upside will follow over the next 24 hours.
BTC/USD 4-hour chart. Source: TradingView
Bitcoin price action traded sideways for more than a week now, with the $31,000 mark serving as strong resistance. Meanwhile, strong support has also been set at $29,000, indicating a clear consolidation area that needs to be broken before further market development can be expected.
Additionally, the previous high was set at the same level as the one before, further indicating indecision in the market. Therefore, the current test of $29,000 is likely to result in another retest of the resistance.
Overall, this means that the next 24 hours should see some bullish momentum. However, if a break higher cannot be done, BTC/USD will likely continue consolidating further over the rest of the week.
Bitcoin price analysis: Conclusion
Bitcoin price analysis is bullish today as we have seen a reaction from the $29,000 major support once again. BTC/USD should bounce from there later today and move back to the $31,000 resistance.