Bitcoin price analysis is bearish today as we have seen a strong higher low set and a strong rally back to $21,000 resistance, where a clear reaction lower was seen. Therefore, BTC/USD has likely formed a double-top reversal pattern and is now ready to decline even further.
Cryptocurrency heat map. Source: Coin360
The market has traded in the green over the last 24 hours. The leader, Bitcoin, gained 0.99 percent, while Ethereum a more substantial 5.19 percent. Meanwhile, Dogecoin continues to dominate the market with almost 70 percent gained.
Bitcoin price movement in the last 24 hours: Bitcoin lacks further buying
BTC/USD traded in a range of $20,566.48 to $20,988.39, indicating mild volatility over the last 24 hours. Trading volume has declined by 20.82 percent, totaling $39.15 billion, while the total market cap traded around $401.2 billion, resulting in market dominance of 38.84 percent.
BTC/USD 4-hour chart: BTC looks to retrace again?
On the 4-hour chart, we can see a strong reaction at the $21,000 previous high, which should result in another move lower overnight.
BTC/USD 4-hour chart. Source: TradingView
Bitcoin price action has seen an increase in volatility this week. After consolidation in an increasingly tighter range earlier in October, BTC/USD saw a massive spike above previous highs on Tuesday.
A new strong swing high was quickly reached at $21,000, where reversal began immediately. Retrace to retest the previous major resistance at $20,000 followed, setting up a base from which to rally higher once more.
During the second half of Yesterday, BTC/USD started to move higher once more. However, Bitcoin price action saw momentum diminish overnight, leading to a weak test of the $21,000 mark. Since then, we can see signs of selling pressure retuning, likely leading to another drop over the next 24 hours.
Bitcoin price analysis: Conclusion
Bitcoin price analysis is bearish today as we have seen signs of double top formation over the past hours as the previous swing high at $21,000 was rejected over the past hours. Therefore, BTC/USD is ready to reverse and look to set a much deeper retrace over the next days.