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Bitcoin Price Analysis: BTC drops another 8 percent, finds support at $56,000

Bitcoin Price analysis

TL;DR Breakdown

  • Bitcoin price analysis is bearish today.
  • BTC/USD saw a further drop to $56,000 overnight.
  • Bitcoin currently retraces some of the loss.

Bitcoin price analysis is bearish today as we expect the current reaction higher to not continue for long. Likely BTC/USD will reverse at $58,000 before further downside follows.

Bitcoin Price Analysis: BTC drops another 8 percent, finds support at $56,000 1
Cryptocurrency heat map. Source: Coin360

The overall market has moved with mixed results over the last 24 hours. Bitcoin has declined by 2.83 percent, while Ethereum has gained 0.35 percent. Meanwhile, Loopring (LRC) is the top performer, with a gain of over 16 percent.

Bitcoin price movement in the last 24 hours: Bitcoin recovers after drop to $56,000

BTC/USD traded in a range of $55,705.18 – $59,673.46, indicating strong volatility over the last 24 hours. Trading volume has increased by 23.59 percent, totaling $43 billion, while the total market cap trades around $1.083 trillion, resulting in the market dominance of 42.51 percent.

BTC/USD 4-hour chart: BTC recovers to $58,000

On the 4-hour chart, we can see Bitcoin price currently retracing, with the $58,000 resistance potentially reversing it lower later today.

Bitcoin Price Analysis: BTC drops another 8 percent, finds support at $56,000
BTC/USD 4-hour chart. Source: TradingView

Bitcoin price has seen bearish momentum return over the last weeks after a new all-time high was set at $68,550 on the 9th of November. Strong drop lower followed a day later, reaching $63,000 previous resistance.

After a several-day consolidation and a slight push higher to $66,000, another strong drop lower followed. BTC/USD reached the $59,000 mark in less than a day, forming a consolidation around $60,000 from there.

Recovery did not follow as bearish momentum returned yesterday. This time, the Bitcoin price action moved to $56,000, meaning that another strong lower low was set. Since then, recovery can be seen, with the $58,000-59,000 area likely offering resistance.

Bitcoin Price Analysis: Conclusion 

Bitcoin price analysis is bearish today as we expect the current recovery not to last long as the $58,000 resistance is close by. Therefore, BTC/USD should continue lower over the next 24 hours as the overall market structure is still very bearish.

While waiting for Solana to move further, see our guides on the Best crypto exchange, how to mine Bitcoin Classic, and Cardano vs 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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