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Bitcoin Price Analysis: BTC fails to break $41,000, set to reverse?

Bitcoin Price analysis

TL;DR Breakdown

  • BTC moved sideways overnight.
  • Further upside rejected.
  • Bitcoin is set to reverse later this week.  

Bitcoin price analysis indicates bearish momentum to follow later this week as the $41,000 resistance still holds and further upside got rejected overnight. Therefore, we expect BTC/USD to start retracing over the next 24 hours and try to break below the closest $36,500 support.

Bitcoin Price Analysis: BTC fails to break $41,000, set to reverse? 1
Cryptocurrency heat map. Source: Coin360

The cryptocurrency market trades with mixed results over the last 24 hours. Bitcoin and Ethereum are slightly in the red, with a loss of 0.24 and 0.2 percent. The rest of the top altcoins follow with practically neutral price movement.

Bitcoin price movement in the last 24 hours: Bitcoin moves sideways around $41,000

BTC/USD traded in a range of $38,862.44 – $40,809.15, indicating mild volatility over the last 24 hours. Trading volume has decreased by 16 percent and totals $32.66 billion, while the total market cap trades around $744.55 billion, resulting in a market dominance of 48.3 percent.

BTC/USD 4-hour chart: BTC ready to retrace?

On the 4-hour chart, we can see Bitcoin price rejecting further upside overnight as bears prepare to test the $36,500 support again.

Bitcoin Price Analysis: BTC fails to break $41,000, set to reverse?
BTC/USD 4-hour chart. Source: TradingView

Bitcoin price action has seen almost a 40 percent rally over the past week. After BTC/USD tested the $29,500 support and quickly reversed from it, the market broke through the previous descending resistance trendline and pushed above the $36,500 resistance. After some retracement, one last spike higher took BTC to the $41,000 mark.

This resulted in a retest of previous major swing high, indicating that bulls are likely slowly building momentum to break past the resistance. However, a clear higher swing low has to be set above the $29,500 mark.

Therefore, we expect Bitcoin price to start heading lower over the rest of the week and try to move past the $36,500 support to reclaim some of the gains seen over the past week. Once that is done, Bitcoin could start to form a base from which to finally break above the $41,000 mark and start heading towards the previous all-time highs. 

Bitcoin Price Analysis: Conclusion 

Bitcoin price analysis indicates bearish momentum to follow later this week as further upside could not be set over the last 24 hours, resulting in a slow retracement away from the $41,000 resistance. Therefore, we expect BTC/USD to start retracing further later this week and try to move past the $36,500 support. 

While waiting for Bitcoin to retrace, 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.

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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