Bitcoin price analysis: BTC moves back to $39,500, looks for a breakout

TL;DR Breakdown

• Bitcoin price analysis is bullish today.
• BTC/USD returned to $39,500 late yesterday.
• Consolidation lower followed today.

Bitcoin price analysis is bullish today as we see another attempt to break the $39,500 resistance after some initial resistance at first. In case the $39,500 mark gets broken, we could see a lot more upside over the weekend.

The market has moved strongly in the green over the last 24 hours. The leader, Bitcoin, gained almost 9 percent, while Ethereum close to 10 percent. Terra (LUNA) is the best performer from the major altcoins, with over 15 percent gain.

Bitcoin price movement in the last 24 hours: Bitcoin rejects $39,500 at first, moves for another test

BTC/USD traded in a range of $35,840.91 – $39,630.32, indicating strong volatility over the last 24 hours. Trading volume has declined by 12.93 percent, totaling $32.2 billion, while the total market cap trades around $745.6 billion, resulting in a dominance of 42.4 percent.

BTC/USD 4-hour chart: BTC looks to finally break $39,500?

On the 4-hour chart, we can see the Bitcoin price currently testing the $39,500 resistance as buyers are looking to finally reverse the overall market structure.

Bitcoin price action has seen more downside tested this week as sellers were relentless. After another lower high was set below $39,500 on the 23rd of February, BTC/USD made a strong push lower to $34,500, setting another strong lower low.

From there, BTC quickly recovered yesterday, leading back to the $39,500 resistance and even setting a slightly higher high. Overnight, the market moved in a narrow consolidation above $38,000, potentially indicating another selloff would be seen soon.

However, despite the calm trading, the Bitcoin price action made another push higher over the last hours. Currently, the $39,500 mark is tested again and, if broken, would indicate a very bullish signal for the overall market structure.

Overall, the current resistance at $39,500 is a key level to watch over the weekend. If a significant further upside is reached, we might see a trend reversal next week.

Bitcoin price analysis: Conclusion 

Bitcoin price analysis is bullish today as we see another attempt to break the $39,500 resistance over the past hours. Therefore, if BTC/USD can move higher, we could see a major reversal for the several-week bearish trend over the weekend.

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.