- Strong retracement continued yesterday.
- BTC consolidated above $38,000 support overnight.
- Bitcoin is ready to push above $40,000 again.
Bitcoin price analysis indicates bullish momentum to follow over the next 24 hours as strong support was established around the $38,000 mark overnight. Therefore, we expect BTC/USD to head higher later today to test the previous high.
The cryptocurrency market traded in the green over the last 24 hours. Bitcoin increased by 0.74 percent, while Etherum by 3.34 percent. Polkadot (DOT) is among the best performers with a gain of 5.7 percent.
Bitcoin price movement in the last 24 hours: Bitcoin finds support around $38,000
BTC/USD traded in a range of $37,589.17 – $38,694.74, indicating mild volatility over the last 24 hours. Trading volume has decreased by 8 percent and totals $23.53 billion, while the total market capitalization trades around $724.24 billion, resulting in the market dominance of 48.57 percent.
BTC/USD 4-hour chart: BTC starts to rally again
On the 4-hour chart, we can see the Bitcoin price action regaining bullish momentum over the last hours as bulls prepare to test the previous resistance levels later this week.
Bitcoin price action has seen a substantial increase over the last weeks after a new swing low was set around $29,500 on the 20th of July. Since then, BTC/USD has rallied by more than 40 percent until the current high of $42,500.
Additionally, the previous swing high of around $41,000 was broken, indicating that the overall market sentiment slowly shifts back to being bullish over the medium term. However, right now, BTC/USD has extended too far without a significant retracement, resulting in a strong decline over the past days to the $38,000 mark.
This Bitcoin price action development could indicate that we will see the current swing high retested and a lower high set over the next few days. If a further higher high is not set, we expect BTC/USD to start a several-week retracement once again in a similar way as during the beginning of June.
Bitcoin Price Analysis: Conclusion
Bitcoin price analysis is bullish for the upcoming days as a new swing low was set around $38,000 overnight, and the market has started to rally again. Therefore, we expect BTC/USD to reach back towards the previous resistance area around $41,000-$42,000 next and try to establish further highs by the end of the week.
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