Bitcoin price analysis: BTC briefly spikes above $40,000, slow move lower to follow?

TL;DR Breakdown

• Bitcoin price analysis is bearish today.
• BTC/USD broke higher high overnight.
• Market looks to return to the downside.

Bitcoin price analysis is bearish today as we have seen a quick spike higher to $40,000 met with rejection. Therefore, BTC/USD should look to decline over the next days, this time likely to set a higher low.

The market has traded mostly in the green over the last 24 hours. The leader, Bitcoin, has traded sideways with a small loss of 0.13 percent, while Ethereum posted a solid gain of 3.15 percent. The rest of the top altcoins have seen even better gains.

Bitcoin price movement in the last 24 hours: Bitcoin sets higher high, looks to pivot lower

BTC/USD traded in a range of $38,609.65 – $40,005.35, indicating mild volatility over the last 24 hours. Trading volume has declined by 39.65 percent, totaling $22.36 billion, while the total market cap trades around $744.4 billion, resulting in a dominance of 41.71 percent.

BTC/USD 4-hour chart: BTC looks to reverse

On the 4-hour chart, we can see the Bitcoin price slowly reversing after a clear higher high was set above $39,500, indicating bullishness for the overall price structure.

Bitcoin price action has traded with strong bearish momentum this week. Further lows were tested until the current low at $34,500 was reached on the 24th of February.

From there, bulls quickly regained control, pushing BTC/USD back to the $39,500 previous resistance. At first, resistance was found at $39,500, with another push higher seen late yesterday.

This time, bulls broke to the $40,000 major price mark, establishing a clear higher high. Therefore, the first sign for a trend reversal has been set. If the upcoming retracement established a higher low, we could see the current several-week trend finally reverse over the next week.

Bitcoin price analysis: Conclusion 

Bitcoin price analysis is bearish today as we have seen a higher high set just above $40,000 and an immediate rejection lower. Therefore, another test of downside should follow, likely to set a higher low.

While waiting for Ethereum to move further, see our articles on how to buy land in Metaverse, How to close a Coinbase account, and how to transfer crypto from Coinbase to Robinhood.