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Bitcoin Price Analysis: BTC tests $56,000 again, upside rejected for now

Bitcoin Price analysis

TL;DR Breakdown

  • Bitcoin price analysis is bearish today.
  • BTC/USD made another push higher today.
  • Resistance at $56,000 still holds.

Bitcoin price analysis is bearish today as further upside was rejected earlier today after a quick spike to $56,000. Therefore, we assume BTC/USD needs to retrace even more before it can reach further upside.

Bitcoin Price Analysis: BTC tests $56,000 again, upside rejected for now 1
Cryptocurrency heat map. Source: Coin360

The overall market traded in the green over the last 24 hours. The market leaders, Bitcoin and Ethereum, are up by 2.09 and 1.26 percent. The rest of the market is mostly in the green, with the largest loss seen for Shiba Inu (SHIB) as it has retraced almost 30 percent after a strong rally earlier this week.

Bitcoin price movement in the last 24 hours: Bitcoin spikes to $56,000 again

BTC/USD traded in a range of $53,525.47 – $55,922.98, indicating strong volatility over the last 24 hours. Trading volume has declined by 18.64 percent, while the total market cap trades around $1.04 billion, resulting in market dominance of 44.83 percent.

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

On the 4-hour chart, we can see rejection for further upside as Bitcoin price only briefly could remain at the $56,000 resistance.

Bitcoin Price Analysis: BTC tests $56,000 again, upside rejected for now
BTC/USD 4-hour chart. Source: TradingView

After strong bearish momentum in September, Bitcoin has reversed so far this month. From the $41,000 support established by the end of September, BTC/USD has so far gained more than 35 percent, reaching the $56,000 mark.

However, after another strong spike higher on Wednesday, bullish momentum became exhausted, sending BTC in a slow retracement yesterday. Support was found around $53,500, with further upside is seen earlier today.

As soon as Bitcoin price reached the $56,000 mark, selling pressure returned, leading to a rejection for further upside. Therefore, we expect that BTC/USD will continue to retrace to establish a base from which to continue higher next week,

Bitcoin Price Analysis: Conclusion 

Bitcoin price analysis is bearish for the rest of the day as a strong rejection for further upside was seen after the $56,000 was reached. Therefore, BTC/USD currently lacks the momentum to reach further upside, and a retracement is needed.

While waiting for Bitcoin to move further, read our guides on Best NFT marketplaces, NFT history and development, as well as NFT Music.

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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