Bitcoin Price Analysis: BTC finds support at $34,000, quickly reacts higher

TL;DR Breakdown

• Bitcoin price analysis is bullish today.
• BTC/USD saw further decline yesterday.
• Sharp spike to $34,000 seen earlier.

Bitcoin price analysis is bullish today as we saw strong rejection for further downside at the $34,000 mark earlier today. Therefore, we expect that BTC/USD has found a new swing low and will retrace from there.

The market has seen bearish momentum return over the last 24 hours. The leaders, Bitcoin and Ethereum, have lost 9.67 and 15.1 percent, respectively. Meanwhile, the top altcoins follow with similar results.

Bitcoin price movement in the last 24 hours: Bitcoin spikes to $34,000

BTC/USD traded in a range of $34,349.25 – $38,984.72, indicating large volatility over the last 24 hours. Trading volume has increased by 23.83 percent, totaling $49.57 billion. Meanwhile, the total market cap trades at $666 billion, resulting in a market dominance of 41.44 percent.

BTC/USD 4-hour chart: BTC reacts from the $34,000 mark

On the 4-hour chart, we can see the Bitcoin price rejecting further downside over the last hours, potentially leading to reversal later today.

Bitcoin price action saw a steady decline earlier this week, leading to $41,000. From there, a lower high was set at $43,500 on the 20th of January before a sharp reversal.

A sharp drop of 11 percent followed to $38,000. After a brief pause, the selloff continued yesterday, leading to another 12 percent loss since. 

However, as we can see by the reaction at $34,000, the Bitcoin price has likely found the bottom. Therefore, we could see BTC/USD form a reversal and start to move higher to retrace some of the substantial loss.

Bitcoin Price Analysis: Conclusion 

Bitcoin price analysis is bullish today as we expect the selloff to have ended. Likely BTC/USD will reverse after reacting from $34,000 support and start to retrace previous losses.

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