Bitcoin price analysis is bearish today as we have seen substantial retracement and retest of the previous support area as resistance. Therefore, another local lower high has been set and further downside can be expected early next week.
Cryptocurrency heat map. Source: Coin360
The market has seen a return to previous days’ close over the last 24 hours as retracement was seen during the middle of the day. The leaders, Bitcoin and Ethereum, gained just 0.01 and 0.21 percent, respectively.
Bitcoin price movement in the last 24 hours: Bitcoin retests previous support as resistance
BTC/USD traded in a range of $37,585.79 to $38,627.86, indicating substantial volatility over the last 24 hours. Trading volume has increased by 11.53 percent, totaling $25.77 billion, while the total market cap[ remains at $733.5 billion, resulting in a dominance of 42.16 percent.
BTC/USD 4-hour chart: BTC ready for another drop?
On the 4-hour chart, we can see Bitcoin price action retracing around 3.5 towards the previous support area, likely meaning that more downside is incoming.
BTC/USD 4-hour chart. Source: TradingView
Bitcoin price action has seen further lows tested over the course of the week. After the previous lowest high at $40,800, BTC/USD dropped to $38,000 major support, further indicating a bearish market structure.
From there, another retracement set another lower high around $40,000 on 28 April 2022. Since then, BTC has slowly pushed lower, reaching further low at $37,500 overnight to today.
This morning, reaction higher followed back to the $38,700 previous support area. Therefore, as long as further upside is not seen, we can expect BTC/USD to start the next week with new lows tested.
Bitcoin price analysis: Conclusion
Bitcoin price analysis is bearish today as we have seen a reaction higher after another lower low set overnight. Therefore, bears should soon take over the momentum again and continue testing further downside early next week.