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Bitcoin Price Analysis: BTC continues to consolidate above $56,000, break lower to follow?

Bitcoin Price analysis

TL;DR Breakdown

  • Bitcoin price analysis is bearish today.
  • BTC/USD continued to set lower highs.
  • Support at $56,000 is currently tested again.

Bitcoin price analysis is bearish today as we expect more downside to follow later today after another lower high was set yesterday. Likely we will see BTC/USD break the $56,000 support, which would mean a lot more downside over the rest of the week would follow.

Bitcoin Price Analysis: BTC continues to consolidate above $56,000, break lower to follow? 1
Cryptocurrency heat map. Source: Coin360

The market has seen mostly bearish results over the last 24 hours. The market leader, Bitcoin, is down by 2.29 percent, while Ethereum has lost 1.06 percent. Meanwhile, Crypto.com Coin (CRO) continues to dominate, with a gain of over 18 percent. 

Bitcoin price movement in the last 24 hours: Bitcoin sets lower high, returns to $56,000

BTC/USD traded in a range of $56,109.26 – $57,875.52, indicating mild volatility over the last 24 hours. Trading volume has declined by 7.55 percent, totaling $33.8 billion, while the total market cap trades around $1 trillion, resulting in a market dominance of 41.66 percent.

BTC/USD 4-hour chart: BTC looks to break lower?

On the 4-hour chart, we can see bearish momentum still strong for the Bitcoin price action as the $56,000 support gets tested again.

Bitcoin Price Analysis: BTC continues to consolidate above $56,000, break lower to follow?
BTC/USD 4-hour chart. Source: TradingView

After a strong beginning of November, when the Bitcoin price reached a new all-time high at $69,000, a sharp reversal began the current downtrend on the 10th of November. BTC/USD has since retraced almost 20 percent to the current low at $56,000.

The following reaction set a strong lower high at $60,000 before bears took over again. On Monday, we saw BTC test the $56,000 mark again, with rejection for more downside.

Another lower high was established around $58,000 yesterday, indicating that the Bitcoin price action is effectively trading in an increasingly tighter range. The bottom of the consolidation is currently tested again, potentially leading to a break lower over the next 24 hours.

Bitcoin Price Analysis: Conclusion 

Bitcoin price analysis is bearish today as we expect the $56,000 to be tested again after a lower high set yesterday around $58,000. Likely we will see BTC/USD break lower, finally setting another lower low.

While waiting for Bitcoin to move further, see our articles on the Best Crypto Wallet 2021, Decred Wallet, and Ripple vs SEC.

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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