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Bitcoin Price Analysis: BTC spikes 15 percent to $40,000, swift reversal today?

Bitcoin Price analysis

TL;DR Breakdown

  • BTC broke past $35,000 resistance overnight.
  • BTC/USD rallied more than 10 percent overnight.
  • Retracement is to be expected next.

Bitcoin price analysis indicates bearish momentum to follow over the next 24 hours since a more than 15 percent spike higher was seen overnight. Therefore, we expect BTC/USD to retrace over the next 24 hours and retest the $35,000 support next.

Bitcoin Price Analysis: BTC spikes 15 percent to $40,000, swift reversal today? 1
Cryptocurrency heat map. Source: Coin360

The cryptocurrency market trades with a strong bullish momentum over the last 24 hours. Bitcoin has gained more than 13 percent, while Ethereum has gained around 11 percent. VeChain (VET) is among the best performers, with a gain of 23 percent.

Bitcoin price movement in the last 24 hours: Bitcoin rallies to $40,000

BTC/USD traded in a range of $33,881.84 – $39,280.42, indicating strong volatility over the last 24 hours. Trading volume has almost doubled and totals $39.72 billion. Meanwhile, the total market capitalization trades around $721 billion, resulting in market dominance of 47.12 percent.

BTC/USD 4-hour chart: BTC set to reverse

On the 4-hour chart, we can see the Bitcoin price rejecting further upside below $40,000 resistance, indicating an upcoming retracement after a more than 15 percent rally.

Bitcoin Price Analysis: BTC spikes 15 percent to $40,000, reversal today?
BTC/USD 4-hour chart. Source: TradingView

Bitcoin price action traded with a mild bearish momentum over the past week after the previous swing high was set around $36,500. From there, BTC/USD retraced by around 20 percent until support was found around $29,500.

A sharp reversal over the weekend followed, with Bitcoin price approaching to test the several-day descending resistance trendline of resistance. After some consolidation below the resistance on the 23rd of July, BTC/USD rallied to the $35,000 resistance next and spiked an additional 15 percent until the $40,000 resistance was finally reached.

This Bitcoin price action development has sent a clear signal that the market is about to reverse, and the overall market structure has turned neutral. Therefore, we can expect BTC/USD to retrace later this week to potentially establish a higher swing low. From there, Bitcoin price will likely attempt to finally break the $40,000 major resistance and push towards further upside over the next months.

Bitcoin Price Analysis: Conclusion 

Bitcoin price analysis indicates bearish momentum to follow over the next 24 hours as BTC/USD rallied further 10 percent overnight and started to reject further upside below $40,000 major resistance. Therefore, we expect BTC/USD to start retracing later today, with the first support target located around $35,000. 

While waiting for Bitcoin to retrace, read our guide on Bitcoin fees, DeFi advantages, what can you buy 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.

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Lapin

Lapin

Lapin is an experienced freelance Crypto and Financial market writer and analyst. He has been trading for several years and holds a bachelor’s degree in Finance.

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