Bitcoin price analysis: BTC continues consolidation around $30,500, further downside incoming?

Bitcoin price analysis is bearish today as we have seen failure to reach further upside since morning as the $30,500 resistance gets respected. Therefore, BTC/USD should continue testing further downside later today and look to return towards the $29,250 previous lows.

The market overall has posted gains across the board. The majors, Bitcoin and Ethereum, trade with 3.46 and 3.16 percent gain, respectively, with most of the top altcoins posting similar results. Cardano (ADA) and Algorand (ALGO) are the top performers, with 10 and 6 percent gains.

Bitcoin price movement in the last 24 hours: Bitcoin tests downside, consolidates around $30,500

BTC/USD traded in a range of $29,536.86 to $31,489.68, indicating substantial volatility over the last 24 hours. Trading volume has increased by 18.41 percent, totaling $41.77 billion, indicating an increased interest at the current price levels. Meanwhile, the total market cap has increased to $584.32 billion, resulting in a dominance of 46.51 percent. 

BTC/USD 4-hour chart: BTC sees a slight retrace before further downside?

On the 4-hour chart, we can see a slight recovery after a quick spike lower overnight. However, as long as the $30,500 mark holds, we expect another push to the downside to follow over the next 24 hours.

Bitcoin price action demonstrated a clear sign of bullish momentum taking over the overall market structure at the end of May. After a fake breakout to $28,000, BTC/USD quickly recovered and moved as high as the $32,500 next resistance, meaning a gain of over 15 percent and a strong higher high set.

From there, retracement followed early last week, with new support found at $29,250. Later in the week, the market moved into a narrow trading range, establishing a base from which to continue even higher.

However, the following rally on 6 May 2022 failed to reach further upside, and a clear lower local high was set at $31,600. Bears quickly reclaimed all of the previous gains, leading back to $29,250 overnight to yesterday, meaning that an even stronger base has been established.

Later yesterday, another increase of volatility followed in the opposite direction as a lower local high was quickly set at $31,500, indicating further consolidation in a descending triangle pattern. Overnight to today, another spike lower took the market back above $30,500, confirming another lower high.

Since then, Bitcoin price action has consolidated below the resistance, with rejection for upside seen over the past hours. This price action development signals that more downside should soon follow. Likely, BTC/USD will finally attempt to break the $29,200 local support and move to test the $29,000 mark that was respected several times in May. Once it is broken, a lot more downside could follow rather quickly later in June.

In this scenario, the next major support is located as low as the $27,500 to $28,000 price area. Alternatively, if bullish momentum re-appears and the current local high are broken, another strong wave could follow by the end of this week.

Bitcoin price analysis: Conclusion 

Bitcoin price analysis is bearish today as the market has seen a strong drop and slight retrace since yesterday. Further upside has been rejected again over the last hours, indicating that more downside should follow later in the week. Therefore, previous lows at $29,200 and the next major support target at $29,000 should be reached by the end of the week.

While waiting for Bitcoin to move further, see our Price Prediction on UNUS SED LEO, BITO, and Klaytn.

.