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Bitcoin price analysis: BTC forms descending triangle, ready to move back to $37,500?

Bitcoin Price analysis 2022 05 02
TL;DR Breakdown
  • Bitcoin price analysis is bearish today.
  • BTC/USD saw another lower high set at $39,000 yesterday.
  • Rejection for further upside was seen overnight.

Bitcoin price analysis is bearish today as we have seen another lower high set at $39,000 over the last 24 hours after a substantial retracement. Additionally, the descending resistance line has been confirmed, indicating that another push lower will follow.

Bitcoin price analysis: BTC forms descending triangle, ready to move back to $37,500? 1
Cryptocurrency heat map. Source: Coin360

The market has seen bearish momentum slowly return over the last 24 hours. The leader, Bitcoin, declined by 0.32 percent, while Ethereum by 0.51 percent. Meanwhile, the rest of the top altcoins have lost even more.

Bitcoin price movement in the last 24 hours: Bitcoin consolidates below $39,000

BTC/USD traded in a range of $37,793.03 to $39,074.97, indicating substantial volatility over the last day. Trading volume has increased by 24.27 percent, totaling $31.81 billion, while the total market cap trades around $731.85 billion, resulting in a dominance of 42.42 percent.

BTC/USD 4-hour chart: BTC ready to drop lower again?

On the 4-hour chart, we can see selling pressure building up, meaning that another drop is incoming over the next days.

Bitcoin price analysis: BTC forms descending triangle, ready to move back to $37,500?
BTC/USD 4-hour chart. Source: TradingView

Bitcoin price has seen a series of lower highs over the last weeks. From the last low at $40,400, another drop of over 7 percent was seen last week to the $37,500 support.

Therefore, another slightly lower low was set, and the market retraced over the weekend. Resistance and lower high were set at $39,000 since then, with consolidation following overnight.

Bitcoin price will likely soon resume its way lower and look to breach the $37,500 support. However, if the mark holds, we could see consolidation form in an increasingly together range over the rest of the week.

Bitcoin price analysis: Conclusion 

Bitcoin price analysis is bearish today as we have seen another lower high set at $39,000 and consolidation sideways overnight. Therefore, BTC/USD should soon resume its decline and look to reach the $37,500 support again.

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.

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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