- Bitcoin price analysis is bearish for today.
- BTC/USD set a strong higher high at $49,000.
- Selling pressure returned in the afternoon.
Bitcoin price analysis is bearish today as we expect retracement to follow after a strong higher high was set at $49,000 today. Likely BTC/USD will retrace to set a higher low before continuing higher later in the week.
The crypto market overall has traded clearly in the green over the last 24 hours. The market leader, Bitcoin, gained 5.21 percent, while Ethereum 4.29 percent. Meanwhile, Avalanche (AVAX) is the top performer, with a gain of almost 16 percent.
Bitcoin price movement in the last 24 hours: Bitcoin sets strong higher high after a retest of $46,000 support
BTC/USD traded in a range of $46,011.86 – $49,300.92, indicating strong momentum in the market over the last 24 hours. Trading volume has increased by 1.65 percent, totaling $29 billion, while the total market cap trades around $920 billion, resulting in a market dominance of 40.81 percent.
BTC/USD 4-hour chart: BTC set to retrace before more upside can be tested?
On the 4-hour chart, we can see slight rejection for further upside around the $49,000 mark, indicating a retracement will likely follow later today.
Bitcoin price action has seen a slow decline over the past weeks. Support was eventually found above $46,000 on the 13th of December, with further retest seen on the 17th of December.
From there, BTC/USD recovered to $48,000, establishing a clear lower high. The third test of the $46,000 mark followed yesterday as bears slowly took the market lower again.
Bullish momentum returned later in the day, leading to a strong rally overnight. By morning, the Bitcoin price had already reached $49,000, indicating a strong higher high finally set. Likely, BTC/USD market structure right now signals a potential reversal forming, which should play out by the end of the year.
Bitcoin Price Analysis: Conclusion
Bitcoin price analysis is bearish today as we expect bulls to be exhausted after setting a strong higher high at $49,000 earlier today. Therefore, we expect BTC/USD to move into a retracement over the next 24 hours.