Bitcoin Price Analysis: BTC breaks previous low, support found at $41,500?

TL;DR Breakdown

• Bitcoin price analysis is bullish today.
• BTC/USD set strong lower low today.
• Support current found at $41,500.

Bitcoin price analysis is bullish today as we expect a reversal to follow after a strong drop over the last few days. Likely BTC/USD will retrace and look to set another low high later this week as the overall trend has changed back to being bearish.

The crypto market overall has seen a decline over the last 24 hours. The leader, Bitcoin, has declined by 1.45 percent, while Ethereum by 3.29 percent. Cardano (ADA) is meanwhile among the worst performers today with a loss of almost 9 percent.

Bitcoin price movement in the last 24 hours: Bitcoin breaks previous low, tests $41,500

BTC/USD traded in a range of $41,392.22 – $42,411.56, indicating a moderate amount of volatility over the last 24 hours. Trading volume has increased by 9.23 percent, totaling $21.85 billion, while the total market cap trades around $789 billion, resulting in a market dominance of 40.04 percent.

BTC/USD 4-hour chart: BTC looks to retrace next?

On the 4-hour chart, we can see the Bitcoin price action finding support at $41,500, meaning a clear lowe low has been set.

Bitcoin price action saw recovery last week as it broke to $44,000 on the 12th of January. The following retracement established a clear higher low around $42,000, further indicating a change in trend direction.

After bullish momentum resumed on Friday, BTC/USD could not move past the $44,000 mark again, setting a lower high. Since then, Bitcoin price has slowly retraced, with the previous low broken today.

Therefore, there has been a change of trend direction again. BTC/USD has set lower low and likely will retrace to set a higher low next. From there, more downside can be expected later this week.

Bitcoin Price Analysis: Conclusion 

Bitcoin price analysis is bullish today as we expect a reversal to follow after a lower low set at $41.500 earlier. Likely BTC/USD is now ready to retrace and set another lower high before continuing lower.

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