Bitcoin price analysis: BTC sets higher low, targets $40,000 next?

TL;DR Breakdown

• Bitcoin price analysis is bullish today.
• BTC/USD found support at $37,000 yesterday.
• Closest resistance at $38,500 is soon to be tested. 

Bitcoin price analysis is bullish today as we saw quick retracement to $37,000 result in a reaction higher today. Therefore, we expect BTC/USD to break the $38,500 local resistance and move towards the $40,000 mark next.

The market has seen mostly bearish momentum over the last 24 hours with signs of recovery over the last hours. The market leader, Bitcoin, has declined by 0.42 percent, while Ethereum has posted a solid gain of 1.93 percent.

Bitcoin price movement in the last 24 hours: Bitcoin tests $37,000 support, continues higher

BTC/USD traded in a range of $36,733.57 – $38,168.01, indicating substantial volatility over the last 24 hours. Trading volume has increased by 22.6 percent, totaling $18.19 billion. Meanwhile, the total market cap trades around $718 billion, resulting in a market dominance of 41.64 percent.

BTC/USD 4-hour chart: BTC looks to break $38,500

On the 4-hour chart, we can see the Bitcoin price action pushing higher once again as support was found at $37,000.

Bitcoin price action saw signs of bullish momentum returning last week. After the final test of downside to the $33,000 mark, a slightly lower swing low was set on the 24th of Jnauary.

From there, BTC/USD quickly moved to $38,500 before setting strong higher low around $36,000 on the 27th of January. Over the following days, BTC slowly traded back to the previous high at $38,500, failing to break any higher and forming a consolidation.

Yesterday bears took over, quickly pushing the Bitcoin price to $37,000, where another higher low was set. Today, we saw return of bullish market sentiment as BTC/USD has almost reached the $38,500 resistance again. If the current momentum continues, we should see clear break 

Bitcoin price analysis: Conclusion 

Bitcoin price analysis is bullish today as we have seen strong buying pressure return over the last 24 hours. Likely BTC/USD is now ready to break the $38,500 local resistance and move towards the $40,000 next significant price mark. 

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.