Bitcoin price analysis: BTC breaks $38,500, more downside incoming?

TL;DR Breakdown

• Bitcoin price analysis is bearish today.
• BTC/USD saw further decline overnight.
• Next support at $38,500 is currently being broken.

Bitcoin price analysis is bearish today as we saw more downside tested over the last 24 hours, with the next support at $38,500 reached. Likely BTC/USD will continue even lower and look to reach $36,000 next.

The market has traded in the red over the last 24 hours. The leader, Bitcoin, lost 4.44 percent, while Ethereum 4.17 percent. Meanwhile, the rest of the top altcoins follow close by with similar results.

Bitcoin price movement in the last 24 hours: Bitcoin breaks past $40,000

BTC/USD traded in a range of $38,112.81 – $40,288.19, indicating substantial volatility over the last 24 hours. Trading volume has declined by 11.18 percent, totaling $18.5 billion, while the total market cap trades around $725.4 billion, resulting in a dominance of 41.94 percent.

BTC/USD 4-hour chart: BTC targets $36,000 next?

On the 4-hour chart, we can see the Bitcoin price action still declining, likely leading even lower by the end of today.

Bitcoin price has seen strong signs of a reversal back to the downside over the past week. After retracing from the previous high at $46,000, the new higher low was set around $41,750 last weekend.

Attempt to reach further upside began this Tuesday. However, BTC/USD quickly found resistance at $44,500, resulting in a clear lower high set. From there, the market slowly pivoted to the downside, with a strong spike lower seen on Thursday.

Some support was initially reached at $40,000, forming a consolidation and potentially indicating a reversal. Despite this, the Bitcoin price action continued lower today, swiftly making its way to the next support area around $38,500.

Overall, we can see a very bearish market structure as of now. Therefore, we expect BTC/USD to drop even further early next week.

Bitcoin price analysis: Conclusion 

Bitcoin price analysis is bearish today as we have seen a strong decline continue over the last 24 hours. Likely BTC/USD will drop even further, with the $36,000 price area the next likely target.

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.