Bitcoin price analysis is bullish today as we expect the $29,250 mark to hold the current test of downside as a reaction higher is already seen. Therefore, BTC/USD should recover later today and look to retest the previous consolidation area as resistance to set another lower local high.
Cryptocurrency heat map. Source: Coin360
The market has traded with substantial losses over the last 24 hours as strong selling was seen earlier in the day. The leader, Bitcoin, declined by 2.25 percent, while Ethereum by 3.09 percent. Meanwhile, Cardano (ADA), Avalanche (AVAX), and Algorand (ALGO) are the worst performers from the major altcoins, with over 6 percent losses.
Bitcoin price movement in the last 24 hours: Bitcoin breaks previous consolidation, retests $29,250 previous support
BTC/USD traded in a range of $29,333.89 to $30,396.19, indicating substantial volatility over the last 24 hours. Trading volume has increased by 16.28 percent, totaling $28.35 billion, while the total market cap trades around $563.7 billion, resulting in market dominance of 46.52 percent.
BTC/USD 4-hour chart: BTC faces rejection at $29,250 support again
On the 4-hour chart, we can see Bitcoin price making a quick spike lower over the past hours back to the $29,250 support. However, since a reaction higher can already be seen, we expect recovery to take place back to the previous consolidation area around $30,000 over the next 24 hours.
BTC/USD 4-hour chart. Source: TradingView
Bitcoin price has continued to stabilize in an increasingly tighter consolidation area over the past week. After the last major upswing at the end of May, BTC/USD found the current several-week high at $32,500 and is yet to retest it again as bears took over the market once again later.
After retracement early in June, clear support was found and retested at $29,250. This level has continued to reverse further tests of downside over the past week, with no indication of failure just yet.,
Additionally, BTC has set a series of lower highs, indicating a descending triangle consolidation pattern, which, when broken, would likely result in another major wave to either side. Therefore, it is crucial to keep an eye out for further tests of either the $$29,250 support or the descending resistance trendline.
In case a breakout happens to the upside, Bitcoin price action should attempt to finally break the $32,500 high, which would lead to a major several-month trend reversal. In this scenario, long positions could be open after a clear higher low is set.
Alternatively, if a break below $29,250 occurs, we still have another strong support close by at $28,750. If this level can also be broken, a lot more downside could follow over the next weeks, as the next support is seen as low as the $25,500 mark.
However, right now, we expect BTC/USD to recover some of the loss and retest the previous consolidation area as resistance. If a strong base is established there over the weekend, BTC should see further attempts to break lower early next week, potentially leading to the previously mentioned bearish scenario.
Bitcoin price analysis: Conclusion
Bitcoin price analysis is bullish today as the market has failed to breach the $29,250 support once again after a quick spike lower. Therefore, BTC/USD should retrace once again and return to the previous consolidation level over the next 24 hours. From there, we expect further attempts to break lower next week as the overall several month market sentiment still remains bearish.