Bitcoin price analysis: BTC fails to break $38,500, another drop incoming?

TL;DR Breakdown

• Bitcoin price analysis is bearish today.
• BTC/USD found resistance at $38,500 yesterday.
• Consolidation was seen overnight.

Bitcoin price analysis is bearish today as we saw a failure to breach the previous high late yesterday as a slight rejection was formed around $38,500 resistance. Therefore, we expect another drop for BTC/USD to come early next week.

The market has seen mixed results over the last 24 hours. The market leader, Bitcoin, gained 0.71 percent, while Ethereum 2.54 percent. The rest of the top altcoins traded with mixed, low volatility results.

Bitcoin price movement in the last 24 hours: Bitcoin slowly moves towards $38,500, finds resistance

BTC/USD traded in a range of $37,406.47 – $38,576.26, indicating a moderate amount of volatility over the last 24 hours. Trading volume has declined by 10 percent, totaling $17.3 billion. Meanwhile, the total market cap trades around $718.5 billion, resulting in a market dominance of 41.5 percent.

BTC/USD 4-hour chart: BTC looks to reverse from $38,500 resistance

On the 4-hour chart, we can see the Bitcoin price action looking to reverse again as further upside was rejected late yesterday. 

Bitcoin price has seen signs of recovery over the past week. After the final push lower on the 24th of January, a new swing low was found at $33,000. From there, BTC/USD saw a quick reaction higher over the following days.

By Wednesday, BTC had peaked at $38,500, setting a strong higher high and indicating a potential change in trend direction. The following retracement to $35,500 set a strong higher high, further confirming bullish market structure developing.

Since then, the Bitcoin price action has slowly traded towards the previous high at $38,500. Late yesterday, rejection at the resistance was seen, leading BTC into a consolidation since. Likely, we will see BTC/USD reverse from the resistance over the next 24 hours and look to establish another higher swing low.

Bitcoin price analysis: Conclusion 

Bitcoin price analysis is bearish today as we currently see reversal forming after rejection for further upside at the $38,500 resistance. Therefore, BTC/USD is likely headed for another test of the downside early next week.

While waiting for Bitcoin to move further, see our articles on Coinbase vs Coinbase Pro, Hardware vs Software wallet comparison, best Crypto trading platforms in the USA.