Bitcoin Price Analysis: BTC retests $46,000, ready to reverse?

Bitcoin Price analysis

TL;DR Breakdown

  • Bitcoin price analysis is bullish today.
  • BTC/USD spiked back to $46,000 support yesterday.
  • Reaction higher continued today.

Bitcoin price analysis is bullish today as we expect the $46,000 support to reverse the decline seen this week. Likely BTC/USD will look to break higher next and move to the next resistance at $49,500

Bitcoin Price Analysis: BTC retests $46,000, ready to reverse? 1
Cryptocurrency heat map. Source: Coin360

The cryptocurrency market has seen bearish momentum over the last 24 hours. The market leader, Bitcoin, has lost 1.92 percent, while Ethereum trades with a similar result. Avalanche (AVAX) is among the top performers today, with a gain of almost 3 percent.

Bitcoin price movement in the last 24 hours: Bitcoin spikes to $46,000, rejects further downside again

BTC/USD traded in a range of $45,819.95 – $48,086.22, indicating substantial volatility over the last 24 hours. Trading volume has declined by 14.26 percent, totaling $29.19 billion. Meanwhile, the total market cap trades around $888 billion, resulting in a market dominance of 40.15 percent.

BTC/USD 4-hour chart: BTC bounces from $46,000

On the 4-hour chart, we can see the Bitcoin price reaching higher again as bears are likely exhausted and unable to break any higher.

Bitcoin Price Analysis: BTC retests $46,000, ready to reverse?
BTC/USD 4-hour chart. Source: TradingView

Bitcoin price saw a strong break higher after consolidation in an increasingly tighter range during the middle of December. After two strong waves higher, BTC/USD peaked around $51,500 on the 23rd of December.

After a brief retracement set another higher low at $49,500, bulls attempted to push the market higher. A brief spike to $52,000 was quickly met with strong selling pressure, leading to a strong selloff on Tuesday.

Selling continued later in the week until support was found at $46,000. After a reaction higher to $48,500, the Bitcoin price spiked lower once more late yesterday. However, since further downside was quickly rejected, we expect BTC/USD to have shown strong signs of a potential reversal.

Bitcoin Price Analysis: Conclusion 

Bitcoin price analysis is bullish today as further recovery is expected after a quick bounce from the $46,000 once again. Likely BTC/USD is now ready to reverse the week-long bearish momentum.

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

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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