Bitcoin Price Analysis: BTC retraces to $46,000, break lower to follow?

TL;DR Breakdown

• Bitcoin price analysis is bearish today.
• BTC/USD continues to retrace overnight.
• Support at $46,000 tested again.

Bitcoin price analysis is bearish today as we expect further attempts to break lower after lower highs were still set today. Likely BTC/USD will move into a narrow consolidation range over the next 24 hours as a result.

The cryptocurrency market has seen the decline continue over the last 24 hours. Bitcoin has lost 2.2 percent, while Ethereum by 1.96 percent. Dogecoin (DOGE) has seen the worst performance from the top altcoins, with a loss of over 10 percent.

Bitcoin price movement in the last 24 hours: Bitcoin continues setting lower highs

BTC/USD traded in a range of $45,752.46 – $47,406.55, indicating substantial volatility over the last 24 hours. Trading volume has declined by 16.3 percent, totaling $29 billion. Meanwhile, the total market cap trades around $877.9 billion, resulting in a market dominance of 39.35 percent.

BTC/USD 4-hour chart: BTC trades in an increasingly more narrow range

On the 4-hour chart, we can see the Bitcoin price action setting another lower high today, likely leading to more downside next.

Bitcoin price saw an end to the strong decline so far this week. After BTC/USD previously declined by over 12 percent in a couple of days, support was found at $46,000 by the end of the year.

Resistance was established around $48,000 after a quick reaction higher and has since been retested several times. After another failed attempt to recover on the 1st of January, BTC saw a slow decline over the past days.

The $46,000 mark was tested again, with a slight break lower, indicating bearish momentum returning. Additionally, the Bitcoin price action has set further local lower highs, meaning the market is trading with a slight bearish pressure right now.

Bitcoin Price Analysis: Conclusion 

Bitcoin price analysis is bearish today as we expect another test of downside to follow after a lower high was set earlier today. Likely BTC/USD will look to break past the current low as bearish sentiment still dominates.

While waiting for Bitcoin to move further, see our articles on Coinbase Vault vs Wallet, Cardano price prediction, and crypto tax-loss harvesting.