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Bitcoin Price Analysis: BTC drops to $46,000, another drop incoming?

Bitcoin Price analysis

TL;DR Breakdown

  • Bitcoin price analysis is bearish today.
  • BTC/USD found support at $46,000.
  • Reaction higher was seen today.

Bitcoin price analysis is bearish as we expect another test of downside to follow over the next 24 hours after a reaction higher from the $46,000 support. Likely BTC/USD will look to break even lower as the selling pressure is still strong.

Bitcoin Price Analysis: BTC drops to $46,000, another drop incoming? 1
Cryptocurrency heat map. Source: Coin360

The cryptocurrency market has seen mixed results over the last 24 hours. The market leader, Bitcoin, gained 0.03 percent after a reaction higher. Ethereum has lost 0.92 percent, Algorand (ALGO) being among the top performers, with a gain of almost 15 percent.

Bitcoin price movement in the last 24 hours: BTC bounces from $46,000 support

BTC/USD traded in a range of $46,060.31 – $48,030.49, indicating strong volatility over the last 24 hours. Trading volume has declined by 2.84 percent, totaling $29.7 billion. Meanwhile, the total market cap trades around $898.6 billion, resulting in a market dominance of 40.3 percent.

BTC/USD 4-hour chart: Bitcoin prepares to move lower again?

On the 4-hour chart, we can see the Bitcoin price slightly recovering today, likely as bears prepare to push the market lower again.

Bitcoin Price Analysis: BTC drops to $46,000, another drop incoming?
BTC/USD 4-hour chart. Source: TradingView

Bitcoin price has seen a strong selloff over the past days after more upside was rejected on the 27th of December. Previously BTC/USD rapidly advanced to $51,500 after breaking out of the previous consolidation, indicating a shift in market sentiment.

However, bulls could not break the price any higher, leading to a strong selloff. Around 11 percent were quickly retraced to the current low at $46,000 as bears broke past previous local lows.

Likely, the Bitcoin price action will regain some of the loss over the next days. Additionally, BTC/USD overall trend direction is currently unclear as previous bullish signs have been invalidated.

Bitcoin Price Analysis: Conclusion 

Bitcoin price analysis is bearish today as we expect more downside to follow after a brief recovery earlier today. Likely BTC/USD will move to test the $46,000 again over the next 24 hours.

While waiting for Bitcoin to move further, see our articles on crypto tax-loss harvesting, BTC-backed mortgage services, and Pi Wallet.

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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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