- Bitcoin price analysis is bearish today.
- BTC/USD continued higher overnight.
- Resistance was found below $42,000 earlier today.
Bitcoin price analysis is bearish today as we have seen a strong rally since Friday lead to a strong higher high set at $42,000. Therefore, BTC/USD is likely ready to retrace over the next days and set another higher low before continuing even higher next week.
The market has seen bullish momentum continue over the last 24 hours. The leader, Bitcoin, has gained 10 percent, while Ethereum follows with a 7.33 percent gain. The rest of the market has seen similar strength gains.
Bitcoin price movement in the last 24 hours: Bitcoin breaks previous highs, peaks below $42,000
BTC/USD traded in a range of $39,474.40 – $41,750.56, indicating substantial volatility over the last 24 hours. Trading volume has increased by 9.57 percent, totaling $27.4 billion, while the total market cap trades around $791 billion, resulting in a market dominance of 41.42 percent.
BTC/USD 4-hour chart: BTC ready to reverse?
On the 4-hour chart, we can see the Bitcoin price action slowing down today as the $42,000 mark offers resistance.
Bitcoin price has seen mixed signals over the past week. After a slightly higher high was set above $39,000 during the first days of February, BTC/USD broke slightly lower low just above $36,000.
Therefore, the market structure has turned bearish again. However, after the following reaction higher, bulls did not give up until the previous high was broken in a strong way. Buying continued all the way to the $42,000 mark, where strong resistance was met overnight.
Since then, the Bitcoin price action has traded in a narrow range below the resistance. Likely BTC/USD will soon see a reversal and a retracement. Therefore, we expect another higher low to be set over the next days.
Bitcoin price analysis: Conclusion
Bitcoin price analysis is bearish today as we have seen strong resistance at $42,000 prevent further upside today. Likely buyers are finally exhausted, and BTC/USD will soon begin retracing to set another higher low.