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Bitcoin Price Analysis: BTC briefly spikes to $33,000, major reversal incoming?

Bitcoin Price analysis

TL;DR Breakdown

  • Bitcoin price analysis is bullish today.
  • BTC/USD peaked at $36,000 yesterday.
  • Lower low set at $33,000.

Bitcoin price analysis is bullish today as we currently see rejection higher after a brief spike to $33,000, setting a slightly lower low. Therefore, if BTC/USD can keep above $34,000 over the next hours, we expect to see retracement over the next 24 hours.

Bitcoin Price Analysis: BTC briefly spikes to $33,000, major reversal incoming? 1
Cryptocurrency heat map. Source: Coin360

The market has returned to bearish momentum over the last 24 hours. Bitcoin declined by 2.76 percent, while Ethereum by 6.4 percent. The rest of the top altcoins follow with similar negative results.

Bitcoin price movement in the last 24 hours: Bitcoin begins to push lower again, spikes to $33,000

BTC/USD traded in a range of $33,184.06 – $36,433.31, indicating strong volatility over the last 24 hours. Trading volume has increased by 15.76 percent, totaling $34.17 billion. Meanwhile, the total market cap trades around $634 billion, resulting in a dominance of 41.81 percent.

BTC/USD 4-hour chart: BTC breaks lower low at $33,000

On the 4-hour chart, we can see the Bitcoin price breaking previous support at $34,000, potentially as the last test of downside before a more serious reversal to the upside.

Bitcoin Price Analysis: BTC briefly spikes to $33,000, major reversal incoming?
BTC/USD 4-hour chart. Source: TradingView

The Bitcoin price action has seen a substantial decline over the second half of January. From the previous swing high of around $44,000, BTC/USD declined by around 22 percent in a couple of days. 

Support was found at $34,000 on the 22nf of January, with a reaction higher establishing resistance around $36,000. Over the weekend, bulls attempted to begin recovery as the market briefly broke above $36,000. However, seller dominance returned overnight.

During the middle of the day, Bitcoin price rapidly pushed lower again, breaking past the $34,000 swing low. Quick reaction higher has followed since, potentially indicating exhaustion for sellers. The lack of a substantial drop lower could finally mean that BTC/USD is ready to reverse.

Bitcoin Price Analysis: Conclusion 

Bitcoin price analysis is bullish today as we expect the current brief test of downside to have ended. Therefore, BTC/USD should move to regain previous loss and continue setting up a reversal.

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

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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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