- Bitcoin price analysis is bearish today.
- BTC/USD retested previous resistance at $42,500.
- Selling pressure has returned today.
Bitcoin price analysis is bearish today as the $42,500 resistance was retested overnight after a strong retracement. Since then, BTC/USD has started to move lower again, potentially looking to finally set a higher low.
The cryptocurrency market has seen bullish momentum return over the last 24 hours. The market leaders, Bitcoin and Ethereum, are up by 1.72 percent and 3.77 percent. Meanwhile, Binance Coin (BNB) is among the top performers, with a gain of over 8 percent.
Bitcoin price movement in the last 24 hours: Bitcoin retraces previous loss
BTC/USD traded in a range of $40,722.09 – $42,380.47, meaning substantial volatility over the last 24 hours. Trading volume has increased by 1.58 percent, totaling $29.47 billion. Meanwhile, the total market cap trades around $792.25 billion, resulting in a market dominance of 40.46 percent.
BTC/USD 4-hour chart: BTC begins to decline again
On the 4-hour chart, we can see the Bitcoin price looking to move lower again as the $42,500 resistance reversed the market overnight.
Bitcoin price has slowed down its decline over the past days. After previously declining by around 13 percent, support was initially found at $41,000.
The following reaction higher established local resistance at $42,500 that has since been retested. Yesterday, BTC/USD saw another sharp selloff, with the previous lows broken until support was found at $40,000.
Since the Bitcoin price action recovered relatively quickly, we expect bears to finally be exhausted. Therefore, the next push lower could likely establish a higher low, from which BTC/USD will attempt to finally break higher later in the week.
Bitcoin Price Analysis: Conclusion
Bitcoin price analysis is bearish today as we expect another test of downside to follow after the market retraced to $42,500. Since most of the previous loss was reclaimed, we expect BTC/USD to not see further downside reached over the next days.