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Bitcoin Price Analysis: BTC drops another 5 percent, on its way to $42,000 major support?

Bitcoin Price Analysis

TL;DR Breakdown

  • Bitcoin price analysis is bearish for today.
  • BTC/USD saw further downside overnight.
  • Market test previous low around $44,000.

Bitcoin price analysis is bearish for today as we have seen a slow decline from the $48,000 current higher over the past days, and we expect this momentum to continue later this week. Therefore, BTC/USD is likely headed to the $42,000 mark next.

Bitcoin Price Analysis: BTC drops another 5 percent, on its way to $42,000 major support? 1
Cryptocurrency heat map. Source: Coin360

The cryptocurrency market traded with a bearish momentum over the last 24 hours as most altcoins saw a decline. Bitcoin has lost 3.55 percent, while Ethereum has around 6.8 percent. Meanwhile, Solana (SOL) is still among the best performers, with a gain of 11.43 percent.

Bitcoin price movement in the last 24 hours: Bitcoin drops to $44,000

BTC/USD traded in a range of $44,364.03 – $46,792.32, indicating mild volatility over the last 24 hours. Trading volume has increased by 3.45 percent and totals $34 billion. Meanwhile, the total market cap trades around $844.6 billion, resulting in market dominance of 44.45 percent.

BTC/USD 4-hour chart: BTC targets the $42,000 mark next?

On the 4-hour chart, we can see the Bitcoin price action continuing to decline, indicating we might see further downside later this week.

Bitcoin Price Analysis: BTC drops another 5 percent, on its way to $42,000 support?
BTC/USD 4-hour chart. Source: TradingView

Bitcoin price action has seen a substantial increase over the past weeks after support was established around the $38,000 mark after a retracement from the $42,000 high at the beginning of August.

BTC/USD rallied by almost 30 percent until the bullish momentum slowly diminished and peaked below $48,000 resistance. Since only slightly higher highs were set, bears slowly started to take over the market momentum and reclaim some of the gains.

Overall, this price action development indicates bearish momentum to follow later this week. The Bitcoin price will likely reach to test further lows, with the $42,000 previous significant swing high likely offering support.

If BTC finds support around $42,000 and established another higher low, we can expect Bitcoin to resume its almost a month-long rally and target the $50,000 mark next.

Bitcoin Price Analysis: Conclusion 

Bitcoin price analysis is bearish for today as the market declines from the $48,000 local swing high. Unless BTC/USD finds strong support, we expect further downside later this week. 

While waiting for Bitcoin to move further, read our articles on Bitcoin Futures, Physical Bitcoin, as well as NFT Marketplace.

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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