Bitcoin price analysis: BTC briefly spikes above $39,500, not yet ready to rally?

TL;DR Breakdown

• Bitcoin price analysis is bullish today.
• BTC/USD spiked above $39,500 late yesterday.
• Another retest of $38,000 support was seen this morning.

Bitcoin price analysis is bullish today as we still expect more upside to follow as a slightly higher high was set above $39,500 resistance. Later, BTC/USD set a slightly higher low, indicating some bullish momentum is forming up.

The cryptocurrency market has moved slightly in the green over the last 24 hours. The leader, Bitcoin, gained 0.97 percent, while Ethereum a more substantial 1.45 percent. The rest of the market followed close by.

Bitcoin price movement in the last 24 hours: Bitcoin sets slightly higher high, prepares for a further attempt to break higher

BTC/USD traded in a range of $38,310.21 – $39,742.50, indicating substantial volatility over the last 24 hours. Trading volume has increased by 4.54 percent, totaling $23.4 billion, while the total market cap trades around $743.44 billion, resulting in a dominance of 42.64 percent.

BTC/USD 4-hour chart: BTC moving higher once more

On the 4-hour chart, we can see the Bitcoin price action looking to test upside again after a slightly higher low was set in the morning.

The Bitcoin price action has moved sideways for most of the past week. After support was initially found around $38,400 late last week, BTC/USD has seen failure to recover further.

At the end of the weekend, a brief spike below $38,000 sent signals that the market is looking to break even lower. However, more downside did not follow as bulls quickly pushed BTC back to the previous consolidation area.

Therefore, the market was still in indecision. The quick spike higher could be another fake-out, leading to further consolidation despite the following retracement setting slightly higher low.

Overall, the market structure is slightly bullish as of now. A clear break above the $39,500 resistance would send a strong signal for further upside to come. Until then, it is best to stay on the sidelines.

Bitcoin price analysis: Conclusion 

Bitcoin price analysis is bullish today as we have seen more upside briefly tested late yesterday. This was followed by a slightly higher low, indicating a slightly bullish market structure has formed over the last 24 hours.

While waiting for Ethereum to move further, see our articles on Crypto Launchpads, DeFi 101, and what you should know about DAOs.