- Bitcoin price analysis is bearish today.
- BTC/USD reached $51,500 yesterday.
- Consolidation was seen overnight.
Bitcoin price analysis is bearish today as we expect a retracement to follow after another strong spike higher yesterday. Likely BTC/USD has peaked at $51,500 for now, with the current consolidation turning into a retracement later today.
The cryptocurrency market has seen bullish momentum continue over the last 24 hours. The market leader, Bitcoin, has gained a solid 4.66 percent, while Ethereum 3.26 percent. The top performer as of now is Terra (LUNA), with a gain of over 12 percent.
Bitcoin price movement in the last 24 hours: Bitcoin finds support at $48,000, spikes higher again
BTC/USD traded in a range of $48,370.18 – $51,506.33, indicating strong volatility over the last 24 hours. Trading volume has increased by 17.67 percent, totaling $27.93 billion. Meanwhile, the total market cap trades around $963.6 billion, resulting in a market dominance of 40.38 percent.
BTC/USD 4-hour chart: BTC set to retrace from $51,500?
On the 4-hour chart, we can see the Bitcoin price action currently consolidating below the new high, likely as bears prepare to push the market into a retracement.
Bitcoin price has seen a slow reversal over the past week play out. After finding and retesting support at $46,000 several times, BTC/USD finally set a higher high on the 21st of December.
Next resistance at $49,500 prevented more upside initially. However, after a small retracement, another spike higher followed yesterday. This time, BTC/USD reached $51,500, setting another strong higher high.
Currently, bulls are likely exhausted, and we will see the Bitcoin price action move into another retracement. The closest support is seen at $49,500 previous high and is the most probable price area where another higher low will be set over the weekend.
Bitcoin Price Analysis: Conclusion
Bitcoin price analysis is bearish today as we expect a retracement to follow after a strong rally yesterday took the market to a new high at $51,500. Likely BTC/USD will look to retest the previous high as support at $49,500 before more upside is tested again.