Bitcoin Price Analysis: BTC briefly spikes below $40,000, quick recovery to follow?

TL;DR Breakdown

• Bitcoin price analysis is bullish today.
• BTC/USD spiked below $40,000.
• Market has since returned above $41,000.

Bitcoin price analysis is bullish today as we saw strong rejection of further downside after a quick spike below the $40,000 major support level. Therefore, we expect BTC/USD to likely have set a new swing low, and reversal will follow from there.

The cryptocurrency market has seen bearish momentum return over the last 24 hours. The market leader, Bitcoin, has lost 0.88 percent, while Ethereum by 1.9 percent. Meanwhile, the rest of the top altcoins follow with similar results.

Bitcoin price movement in the last 24 hours: Bitcoin drops again, gets rejected at $40,000

BTC/USD traded in a range of $39,796.57 – $42,663.95, indicating strong volatility over the last 24 hours. Trading volume has increased by 6.12 percent, totaling $28.83 billion, while the total market cap trades around $772.34 billion, resulting in a market dominance of 40.85 percent.

BTC/USD 4-hour chart: BTC quickly recovers from $40,000

On the 4-hour chart, we can see the Bitcoin price action experiencing huge volatility over the past hours as the $40,000 quickly led to strong rejection.

The Bitcoin price action has seen consolidation above $41,000 for the past days after previously dropping another 12 percent.

Resistance was found around $42,500 after a quick reaction higher. However, bulls failed to retrace further, resulting in another slow decline beginning yesterday.

BTC/USD finally broke past the local support and quickly spiked below $40,000 earlier today. Buyers quickly stepped in, returning BTC/USD above previous support. The large rejection of downside after only a slightly lower low was set could finally indicate an upcoming reversal.

Bitcoin Price Analysis: Conclusion 

Bitcoin price analysis is bullish today as we saw further downside quickly rejected at the $40,000 mark. Likely BTC/USD has finally found a new major low, and we will see bullish momentum return later in the week.

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