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Bitcoin Price Analysis: BTC retests $42,500 as support, prepares to spike higher? 

Bitcoin Price analysis

TL;DR Breakdown

  • Bitcoin price analysis is bullish today.
  • BTC/USD consolidated overnight.
  • Slight [pullback seen today to $42,500.

Bitcoin price analysis is bullish today as another local higher low has been set over the past hours. Therefore, we expect BTC/USD to push higher again later today and look to clear the $44,000 resistance.

Bitcoin Price Analysis: BTC retests $42,500 as support, prepares to spike higher?  1
Cryptocurrency heat map. Source: Coin360

The crypto market has seen mostly bullish momentum over the last 24 hours. The market leader, Bitcoin, has declined 0.03 percent as a retracement was seen over the past hours. Meanwhile, Ethereum trades with a 1.22 percent gain, while Terra (LUNA) leads the market with over 6 percent gain.

Bitcoin price movement in the last 24 hours: Bitcoin rejects from $42,000 support

BTC/USD traded in a range of $42,669.04 – $43,346.69, indicating substantial volatility over the last 24 hours. Trading volume has declined by 41.41 percent, totaling 20.5  billion.  Meanwhile,  the total market cap trades around $812.8 billion, resulting in a market dominance of 39.5 percent.

BTC/USD 4-hour chart: BTC looks to continue higher?

On the 4-hour chart, we can see the Bitcoin price briefly retesting $42,500 support, likely as bulls prepare to push the market even higher.

Bitcoin Price Analysis: BTC retests $42,500 as support, prepares to spike higher?
BTC/USD 4-hour chart. Source: TradingView

Bitcoin price action has seen its first signs of recovery this week. After a massive spike lower on the 10th of January, BTC/USD quickly rebounded above previous highs, signaling potential trend reversal.

On Wednesday, another push higher took BTC above $44,000 next resistance. After some consolidation below the resistance, retracement began, leading to the $42,000 mark early on Friday.

Further downside was quickly rejected, leading to the $43,400 mark by the end of the day. Overnight, Bitcoin price consolidated, with a slight bearish pressure seen in the morning. 

Over the past hours, BTC/USD quickly spiked to $42,500 previous support/resistance level, with rejection quickly after. Likely, bulls are now ready to push the market even higher, potentially meaning we could see a new higher high by the end of the weekend.

Bitcoin Price Analysis: Conclusion 

Bitcoin price analysis is bullish today as we saw a higher low set yesterday, around $42,000, followed by a strong push higher. Therefore, the current test of $42,500 support should lead BTC/USD to a lot more upside later in the weekend.

While waiting for Bitcoin to move further, see our articles on Coinbase Vault vs Wallet, Cardano price prediction, and crypto tax-loss harvesting.

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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