Bitcoin price analysis: BTC continues to decline, tests $39,200 previous support

In this post:

TL;DR Breakdown

  • Bitcoin price analysis is bullish today.
  • BTC/USD declined by almost 9 percent from the previous high.
  • Reaction higher likely to follow.

Bitcoin price analysis is bullish today as we expect the current selloff to have ended after a 9 percent loss since yesterday. Likely, sellers are exhausted, and BTC/USD will regain some of the loss next.

Cryptocurrency heat map. Source: Coin360

The market has declined over the last 24 hours. The leader, Bitcoin, declined by 5.87 percent, while Ethereum by 4.5 percent. Meanwhile, the rest of the top altcoins have declined even more.

Bitcoin price movement in the last 24 hours: Bitcoin rejects from $40,000, finds more downside later

BTC/USD traded in a range of $39,315.42 to $41,910.75, indicating strong volatility over the last 24 hours. Trading volume has increased by 59.33 percent, totaling $47.43 billion, while the total market cap trades at $750.175 billion, resulting in a dominance of 40.82 percent.

BTC/USD 4-hour chart: BTC stops at $39,200

On the 4-hour chart, we can see another quick spike over the past hours leading to the $39,200 next support.

Bitcoin price analysis: BTC continues to decline, tests $39,200 previous support
BTC/USD 4-hour chart. Source: TradingView

Bitcoin price action has seen a steady downswing turn into a strong upsurge over the past weeks starting from Monday. After the last spike lower to the $38,600 mark on 18 April 2022, BTC/USD quickly recovered above the previous high at $41,500.

Therefore, a strong bullish signal was seen in the market. Further upside followed as high as $43,000 until the second half of yesterday.

From there, the Bitcoin price action reversed rather quickly, declining by over 9 percent in a little over 24 hours. The last support at $39,200 is currently tested, indicating that reversal might soon begin. However, if further downside follows, we could see a lot more downside by the end of the weekend.

Bitcoin price analysis: Conclusion 

Bitcoin price analysis is bullish today as we have seen a strong decline since yesterday, resulting in a 9 percent retracement. Therefore, bears are likely exhausted, and recovery will follow over the weekend.

While waiting for Bitcoin to move further, see our articles on How to stake Shiba Inu on Metamask, How to buy Ankr, and Is Safuu a good investment in 2022.

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