Bitcoin price analysis is bullish today, as we have seen a reaction higher from the $21,000 support and consolidation formed around $22,500. Therefore, BTC/USD is ready to retrace and finally begin to retrace the massive loss seen over the past week. Therefore, we expect BTC/USD to retest the previous major swing high at $25,500 as resistance over the upcoming days as the first target higher.
Cryptocurrency heat map. Source: Coin360
The market has slowed down its decline over the last 24 hours. The leader, Bitcoin, lost 4.67 percent, while Ethereum by 1.37 percent as consolidation began. Meanwhile, Solana (SOL), Cardano (ADA), Polkadot (DOT), and Chainlink (LINK) were the top performers, with over a 5 percent increase.
Bitcoin price movement in the last 24 hours: Bitcoin begins consolidation around $22,500
BTC/USD traded in a range of $20,950.82 to $24,093.65, indicating substantial volatility over the past day despite consolidation formed this morning. Trading volume has declined by 8.92 percent, totaling $62.75 billion, while the total market cap trades around $431.5 billion, resulting in a dominance of 45.15 percent.
BTC/USD 4-hour chart: BTC ready to retrace?
On the 4-hour chart, we can see reversal slowly forming as bearish momentum cannot sustain further tests of downside. Likely this will lead the Bitcoin price to begin retracement later this week.
Bitcoin price action has declined around 33 percent from the $31,500 last local high over the past days. After some initial support at $27,250 on Saturday, BTC/USD continued to push lower yesterday.
Eventually, the $25,500 previous major swing low was breached in a very clear way, opening up space for more downside to follow. BTC closed the day with a massive loss, while further downside was reached overnight.
Support eventually appeared at $21,000, sending the market for a quick reaction to $23,000. From there, consolidation began around $22,500, indicating that a substantial reversal could soon follow.
Therefore, once the retracement begins, we expect a strong recovery to follow by the end of the week. Likely the previous swing low support will be retested as resistance as the first target higher. However, considering the severity of the decline seen over the past days, a much deeper retrace could easily follow.
Overall, Bitcoin price action likely has not much more downside as sellers are exhausted. We expect a strong major swing lower high to be set by the end of June, potentially leading to another attempt to break lower.
Bitcoin price analysis: Conclusion
Bitcoin price analysis is bullish today as the market has found another strong support at $21,000, indicated by the swift reaction higher overnight. Consolidation around $22,500 has followed since, likely leading BTC/USD to start retracing over the next days. Once we see the first push higher, a swift move to the $25,500 mark can be expected to follow.
While waiting for Bitcoin to move further, see our long-term Bitcoin price prediction for 2022-2030.