Bitcoin price analysis: BTC slowly retraces to $40,400, pivots lower again

TL;DR Breakdown

• Bitcoin price analysis is bearish today.
• BTC/USD saw a new lower high set around $40,000 yesterday.
• Selling pressure returned over the last hours.

Bitcoin price analysis is bearish today again as we have seen a lower high set at $40,400 and strong signs of reversal overnight. Since further downside has already been reached, we expect another wave lower over the weekend to follow.

The market has traded in the red over the last 24 hours. The leader, Bitcoin, declined by 2.52 percent, while Ethereum a similar 2.38 percent. The rest of the top altcoins saw similar performance.

Bitcoin price movement in the last 24 hours: Bitcoin starts to decline again

BTC/USD traded in a range of $38,698.16 – $40,269.47, indicating a moderate amount of volatility over the last 24 hours. Trading volume has increased by 5.93 percent, totaling $35.21 billion, while the total market cap trades around $740.825 billion, resulting in a dominance of 41.72 percent.

BTC/USD 4-hour chart: BTC returns below $39,000

On the 4-hour chart, we can see strong selling pressure in play over the last hours, indicating that further downside will be reached over the next 24 hours.

Bitcoin price action has tested further lows so far this week. On Tuesday new low at $38,000 was reached as a result of another quick 7 percent decline.

From there, BTC/USD slowly retraced during the past days until the $40,000 mark started to slow the market down. New lower high was set at $40,400 and rejection lower was seen from there.

Overnight, sellers took over Bitcoin price action momentum, leading back below $39,200 over the last hours. Likely this bearish momentum will continue later in the day and during the weekend.

Bitcoin price analysis: Conclusion 

Bitcoin price analysis is bearish today as we have seen a strong lower high set yesterday and the first push lower over the second half of the day. Therefore, we expect BTC/USD to continue declining later today and target to break the $38,000 support by the end of the weekend.

While waiting for Bitcoin to move further, see our articles on How to stake Shiba Inu on Metamask, How to buy Ankr, and Is Safuu a good investment in 2022.