Bitcoin Price Analysis: BTC sets lower high around $32,000, prepares for another drop?

TL;DR Breakdown

  • BTC rallied yesterday.
  • Lower swing high set at $32,800.
  • Bears currently prepare for another push lower.

Bitcoin price analysis indicates bearish pressure to take over later today as further upside has been rejected overnight, and $32,000 resistance holds the market in place. Therefore, we expect BTC/USD to start declining later today to continue declining along with the several-week bearish momentum.

Bitcoin Price Analysis: BTC sets lower high around $32,000, prepares for another drop? 1
Cryptocurrency heat map. Source: Coin360

The crypto market trades mostly in the green over the last 24 hours. Bitcoin is up by around 2.1 percent, while Ethereum is 5.2 percent. The rest of the top altcoins follow the leaders with again of around 2-4 percent.

Bitcoin price movement in the last 24 hours: Bitcoin establishes another lower low

BTC/USD traded in a range of $31,510.54 – $32,752.33, indicating a moderate amount of volatility. Trading volume has increased by 9 percent over the last 24 hours and totals $25.13 billion. Meanwhile, the total market capitalization stands around $603.6 billion, resulting in market dominance of 45.9 percent.

BTC/USD 4-hour chart: BTC prepares to push lower again?

On the 4-hour chart, we can see the Bitcoin price forming a base around $32,000 in preparation for another push lower.

Bitcoin Price Analysis: BTC sets lower high around $32,000, prepares for another drop?
BTC/USD 4-hour chart. Source: TradingView

Bitcoin price action continues to trade in a strong bearish momentum over the past weeks after several lower highs were set. However, the major support area around $29,00-$31,000 still has not been broken, indicating that we might potentially see a major trend reversal over the next weeks.

Yesterday, BTC/USD rallied to $32,000 resistance and made a brief spike higher to the $32,800 mark. From there, a further upside was rapidly rejected, and another clear lower swing high was set. What followed was a sideways consolidation, which should lead BTC towards a strong decline later this week.

In case the Bitcoin price finds support around $29,500 previous low, we could see the market start to reverse over the next week. Alternatively, BTC/USD will likely finally break past the major support and continue setting new several-month lows from there.

Bitcoin Price Analysis: Conclusion 

Bitcoin price analysis is bearish for the next few days as a substantial lower high was set yesterday around the $32,800 mark. Since then, BTC/USD has consolidated around $32,000 as bears prepare to push the market towards further downside again.

While waiting for Bitcoin to decline further, read our guides on Bitcoin fees, DeFi advantages, as well as what can you do with Bitcoin.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

Source: https://www.cryptopolitan.com/bitcoin-price-analysis-2021-07-22/

YouTube video