Bitcoin price analysis: BTC swiftly retraces 9 percent, ready to reverse?

TL;DR Breakdown

• Bitcoin price analysis is bullish today.
• BTC/USD lost 9 percent overnight.
• Support found around $39,000.

Bitcoin price analysis is bullish today as we have seen swift retracement to $39,000 overnight met with strong support over the last hours. Therefore, we assume BTC/USD has set a higher low and is ready to reverse later in the week.

The market has seen a strong decline over the last 24 hours. The leader, Bitcoin, lost 7.5 percent, while Ethereum followed with a 5.64 percent loss. The rest of the top altcoins followed close by.

Bitcoin price movement in the last 24 hours: Bitcoin swiftly drops after peaking at $42,500 yesterday

BTC/USD traded in a range of $38,832.94 – $42,289.88, indicating strong volatility over the last 24 hours. Trading volume has declined by 6.54 percent, totaling $30.84 billion, while the total market cap trades around $740 billion, resulting in a dominance of 42.45 percent.

BTC/USD 4-hour chart: BTC looks to set higher low?

On the 4-hour chart, we can see the Bitcoin price action finding new support at $39,000, likely indicating an upcoming reversal.

Bitcoin price action has bottomed out over the weekend after a sharp drop of over 17 percent from the $45,600 previous high. The last attempt to break lower was also quickly rejected on Monday, leading back to $39,500 resistance.

Early yesterday, bulls quickly gained momentum, breaking past the local resistance. Later in the day new strong high was set around $42,500, indicating bullish momentum returning. However, the $45,000 previous resistance is still the mark to be broken for a more serious confirmation for trend reversal.

Overnight to today, swift retracement pushed the Bitcoin price back to $39,000, leading to believe a higher low is set. Therefore, if we see more upside over the next 24 hours, likely further higher high will be set, indicating a shift in the overall market sentiment.

Bitcoin price analysis: Conclusion 

Bitcoin price analysis is bullish today as we have seen a strong break higher followed by a retracement to $39,000. As the downside currently gets rejected, we assume BTC/USD has set a higher low and is ready to push higher again later in the week.

While waiting for Ethereum to move further, see our articles on Crypto Launchpads, DeFi 101, and what you should know about DAOs.