Bitcoin price analysis is bullish today as we have seen a substantial drop until the $31,000 mark, where rejection is currently seen. Therefore, BTC/USD will likely regain some of the loss over the next days and look to set a lower high.
Cryptocurrency heat map. Source: Coin360
The market has traded in the red over the last 24 hours. The leader, Bitcoin, lost 6.89 percent, while Ethereum over 7.88 percent. Meanwhile, Terra (LUNA) was the worst performer, with over a 16 percent loss.
Bitcoin price movement in the last 24 hours: Bitcoin declines over 10 percent
BTC/USD traded in a range of $31,277.32 – $34,672.27, indicating strong volatility over the last 24 hours. Trading volume has increased by 33.91 percent, totaling $47.34 billion, while the total market cap trades around $599 billion, resulting in a dominance of 41.72 percent.
BTC/USD 4-hour chart: BTC reacts higher at $31,000
On the 4-hour chart, we can see a sharp drop met with a reaction higher at the $31,000 mark, potentially indicating that retracement will follow later today.
BTC/USD 4-hour chart. Source: TradingView
Bitcoin price action saw a strong higher high set at the $40,000 late last week. However, further upside did not follow as the following decline took the market way below the previous low.
On May 5 2022, BTC/USD found support at $35,500 before moving into a consolidation for over a day. Recovery did not follow once more as further downside was tested later in the weekend.
Today, the selling pressure continued. Bitcoin price quickly moved as low as the $31,000 mark, where a reaction higher can currently be seen. Likely, BTC/USD will react higher later today, sending the market towards a new higher swing low over the next days.
Bitcoin price analysis: Conclusion
Bitcoin price analysis is bullish today as we expect a retracement to follow after another drop of over 10 percent. Therefore, bears are likely exhausted, and BTC/USD is ready to regain some of the loss seen over the last days.