Bitcoin price analysis is bullish today as we expect another retest of upside after a strong drop over the last 24 hours set another clear lower local low. Therefore, we expect BTC/USD to rally back towards previous support at $21,500 and set another lower high.
Cryptocurrency heat map. Source: Coin360
The market has traded in the red over the last 24 hours as the leader, Bitcoin, declined by 5.5 percent. Meanwhile, Ethereum lost almost 10 percent, with the rest of the top altcoins following close by.
Bitcoin price movement in the last 24 hours: Bitcoin sets another lower low
BTC/USD traded in a range of $20,776.82 to $22,213.48, indicating strong volatility over the last 24 hours. Trading volume has increased by 5.26 percent, totaling $32.15 billion, while the total market cap trades around 399.56 billion, resulting in a dominance of 41.86 percent.
BTC/USD 4-hour chart: BTC to retest $21,500 as resistance?
On the 4-hour chart, we can see the Bitcoin price slowing down its decline, indicating that bulls will soon take over and look to set another lower local high.
BTC/USD 4-hour chart. Source: TradingView
Bitcoin price action had seen a steady retrace begin since last Wednesday, when a new swing higher high was reached at $24,250. From there, a quick reaction lower and a retest of upside that set a lower high at $23,600 confirmed that more downside was about to follow.
Later, over the weekend, BTC/USD did indeed push even lower, eventually setting a further low local high at $23,000. From there, a strong push lower began early Monday, leading to a quick spike past the $21,500 next support.
Further downside was seen later today, leading past the $21,000 mark with low momentum. Likely this will means that bears are exhausted for now, and a retest of upside is needed next to set another lower high before any further drop can be attempted later in the week.
Bitcoin price analysis: Conclusion
Bitcoin price analysis is bearish today as we have seen a strong push come to an end as soon as the $21,00 mark was slowly broken. Therefore, bears are exhausted, and retrace higher should follow next.