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Bitcoin price analysis: BTC retests $39,500 resistance, ready for another spike lower?

Bitcoin Price analysis

TL;DR Breakdown

  • Bitcoin price analysis is bearish today.
  • BTC/USD tested further downside yesterday.
  • Reaction to $39,500 seen over the last hours.

Bitcoin price analysis is bearish today as we expect more downside to follow after a retest of $39,500 major resistance resulted in a rejection. Therefore, BTC/USD should head even lower over the next 24 hours.

Bitcoin price analysis: BTC retests $39,500 resistance, ready for another spike lower? 1
Cryptocurrency heat map. Source: Coin360

The market has moved in the red over the last 24 hours, with the leader, Bitcoin, down by 0.25 percent. Ethereum has declined even further, with a loss of 1.15 percent, while the rest of the market follows.

Bitcoin price movement in the last 24 hours: Bitcoin tests further lows at $38,000, recovers to $39,500

BTC/USD traded in a range of $37,709.98 – $39,430.23, indicating substantial volatility over the last 24 hours. Trading volume has increased by 28.27 percent, totaling $23.355 billion, while the total market cap trades around $746.8 billion, leading to a dominance of 42.34 percent.

BTC/USD 4-hour chart: BTC ready for further decline?

On the 4-hour chart, we can see the Bitcoin price currently getting rejected from the $39,500 resistance, likely leading to more downside over the next 24 hours.

Bitcoin price analysis: BTC retests $39,500 resistance, ready for another spike lower?
BTC/USD 4-hour chart. Source: TradingView

The Bitcoin price action has seen a strong reversal over the last days. After a new higher high was set above $45,000 during the middle of last week, bulls were finally exhausted, leading to retracement later in the week.

By the start of the weekend, a new low was found around $39,000. Bulls failed to regain control, leading to more tests of the downside yesterday, leading to the next support at $38,000 tested next.

Reaction higher back to $39,500 followed, with rejection for further upside currently seen. Overall, the current market structure indicates more downside should follow over the next days as bears have regained control.

Bitcoin price analysis: Conclusion

Bitcoin price analysis is bearish today as we have seen the $39,500 resistance retested again with a rejection. Therefore, BTC/USD should be headed lower again and test the $37,000 previous low over the next 24 hours. 

While waiting for Ethereum to move further, see our articles on how to buy land in Metaverse, How to close a Coinbase account, and how to transfer crypto from Coinbase to Robinhood.

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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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