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Bitcoin Price Analysis: BTC ready to break past $56,000 support?

Bitcoin Coin Price analysis

TL;DR Breakdown

  • Bitcoin price analysis is bearish today.
  • BTC/USD continues to test the $56,000 support.
  • Next support at $53,500.

Bitcoin price analysis is bearish today as the $56,000 support is tested with an increasingly tighter range forming above it. Therefore, we expect BTC/USD to break lower and move towards the next support at $53,500 over the next 24 hours.

Bitcoin Price Analysis: BTC ready to break past $56,000 support? 1
Cryptocurrency heat map. Source: Coin360

The cryptocurrency market has seen bearish momentum return. The market leaders, Bitcoin and Ethereum, are both in the red, with a loss of 4.05 and 4.51 percent. Meanwhile, Cardano (ADA) is the top performer, with a gain of over 6 percent.

Bitcoin price movement in the last 24 hours: Bitcoin rejects from $59,000 resistance, continues to consolidate

BTC/USD traded in a range of $55,895.13 – $58,650.50, indicating a moderate amount of volatility over the last 24 hours. Trading volume has declined by 5.97 percent, totaling 33.76 billion, while the total market cap trades around $1.06 trillion, resulting in market dominance of 40.87 percent.

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

On the 4-hour chart, we can see the Bitcoin price action testing the $56,000 support today as bears are likely ready to finally break lower.

Bitcoin Price Analysis: BTC ready to break past $56,000 support?
BTC/USD 4-hour chart. Source: TradingView

Bitcoin price has consolidated between $56,000 support and $59,000 resistance so far this week. After setting both a lower high and lower low last week, BTC/USD saw a reaction higher by the end of the last weekend.

Bulls set a slightly lower high again at the $59,000 mark. The resistance was tested several times, with clear rejections each time, indicating bearish momentum slowly taking over.

Since the last retest of upside, the Bitcoin price action has started to consolidate in a very narrow range at the $56,000 support. Therefore, we can expect BTC/USD to finally break lower and continue along with the overall several-week bearish trend later this week.

Bitcoin Price Analysis: Conclusion 

Bitcoin price analysis is bearish today as we saw upside rejected yesterday once more, leading back to the $56,000 support. Likely BTC/USD is now ready to test further downside, meaning that the current support should be broken later today.

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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