TL;DR Breakdown
- Bitcoin price analysis is bullish today.
- BTC/USD retested the previous low yesterday.
- Resistance at $42,500 still holds.
Bitcoin price analysis is bullish today as we expect more recovery to follow after the second test of the $41,000 support. BTC/USD has started to form consolidation, likely leading to retracement next week.
The market has seen bearish momentum over the last 24 hours. Bitcoin lost 0.2 percent, while Ethereum 2.06 percent. Meanwhile, Terra (LUNA) and Chainlink (LINK) are the top performers today, with gains of around 7 percent.
Bitcoin price movement in the last 24 hours: Bitcoin starts to consolidate as further downside is rejected again
BTC/USD traded in a range of $40,672.28 – $42,228.94, indicating substantial volatility over the last 24 hours. Trading volume has declined by 37.62 percent, totaling $27.46 billion. Meanwhile, the total market cap trades around $788 billion, resulting in a market dominance of 40.39 percent.
BTC/USD 4-hour chart: BTC prepares to reverse?
On the 4-hour chart, we can see the Bitcoin price action forming consolidation above $41,000 over the weekend, likely leading to retracement next week.
During the beginning of the year, Bitcoin price continued to consolidate above $46,000 support until the beginning of this week. On the 5th of January, BTC/USD saw heavy selling return, quickly leading to around 9 percent loss to the $42,500 mark.
A day later, more downside was tested, leading to a further low reached at $41,000. Since then, BTC has retested the $42,500 previous local support as resistance and began to consolidate.
A brief move below $41,000 was quickly rejected yesterday, indicating the return of buyers in the market. Therefore, we expect the Bitcoin price to start recovering next week, with the $42,500 mark being the first target to be broken.
Bitcoin Price Analysis: Conclusion
Bitcoin price analysis is bullish today as we expect more upside to follow after rejection from the $41,000 support was seen again yesterday. Likely BTC/USD is currently preparing to finally reverse and retrace the loss seen this week.
While waiting for Bitcoin to move further, see our articles on Coinbase Vault vs Wallet, Cardano price prediction, and crypto tax-loss harvesting.
Source: https://www.cryptopolitan.com/bitcoin-price-analysis-2022-01-09/