- 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.
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 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.
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