Bitcoin price analysis: BTC makes the last spike lower, ready to return above $40,000?

TL;DR Breakdown

• Bitcoin price analysis is bullish today.
• BTC/USD retested previous lows at $39,500 this morning.
• Brief spike to $37,500 seen over the past hours.

Bitcoin price analysis is bullish today as we expect a reversal to follow after a strong spike lower was met with strong rejection. Therefore, we expect BTC/USD has bottomed out and is now ready to recover some of the loss seen over the past days.

The market has seen mostly bullish momentum over the last 24 hours. The leader, Bitcoin, gained 1.13 percent, while Ethereum 2.56 percent. Meanwhile, Terra (LUNA) has performed the best as it gained over 7 percent.

Bitcoin price movement in the last 24 hours: Bitcoin retraces before, makes quick spike to $37,500

BTC/USD traded in a range of $37,358.00 – $39,394.44, indicating strong volatility over the last 24 hours. Trading volume has increased by 37 percent, totaling $23.14 billion, while the total market cap trades around $738.3 billion, resulting in a dominance of 41.84 percent before.

BTC/USD 4-hour chart: BTC ready to reverse?

On the 4-hour chart, we can see the Bitcoin price action making strong rejection for downside over the past hours, likely leading to more upside over the next 24 hours.

Bitcoin price action saw strong signs of reversal last week as it peaked at $44,500 on the 15th of February. More downside followed quickly, leading to a strong lower low at $40,000.

After some consolidation early on the weekend, BTC/USD dropped even further to $38,000. A retest of the previous consolidation area followed yesterday, indicating that more downside will follow unless more upside is seen.

Eventually, the Bitcoin price action spiked lower again. Today, sellers quickly pushed BTC/USD to $37,500, with a reaction higher seen immediately after. Likely, we could be seeing the bottom of the current downswing finally set.

Therefore, we assume more upside will likely follow over the next 24 hours. If the $40,000 mark gets broken to the upside, we could see a retracement of the current downswing carried out throughout this week.

Bitcoin price analysis: Conclusion 

Bitcoin price analysis is bullish today as the market has shown strong signs of rejection for a further downside after a brief move to $37,500 over the past hours. Likely, BTC/USD will push higher from there, looking to return above $40,000, which could lead to a lot deeper retracement.

While waiting for Bitcoin to move further, see our articles on Coinbase vs Coinbase Pro, Hardware vs Software wallet comparison, best Crypto trading platforms in the USA.