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Bitcoin price analysis: BTC breaks $37,500 previous low, finds support at $36,500

Bitcoin Price analysis 2022 05 05
TL;DR Breakdown
  • Bitcoin price analysis is bullish today.
  • BTC/USD dropped over 7 percent over the last hours.
  • Support was found at $36,500.

Bitcoin price analysis is bullish today as we have seen a strong drop below the previous low and support found at $36,500. Therefore, BTC/USD will likely soon reverse and retrace some of the loss.

Bitcoin price analysis: BTC breaks $37,500 previous low, finds support at $36,500 1
Cryptocurrency heat map. Source: Coin360

The market has seen bullish momentum over the last 24 hours. Bitcoin still trades with a slight gain, while Ethereum with a 3.13 percent gain. The rest of the top altcoins have performed even better.

Bitcoin price movement in the last 24 hours: Bitcoin peaks at $40,000, drops over 8 percent

BTC/USD traded in a range of $37,257.79 to $39,902.95, indicating substantial volatility over the last 24 hours. Trading volume has increased by 19.42 percent, totaling $39.15 billion, while the total market cap trades at $709.5 billion, resulting in market dominance of 41.65 percent.

BTC/USD 4-hour chart: BTC spikes to $36,500

On the 4-hour chart, we can see a strong lower low set over the second half of the day with a slight reaction at the $36,500 mark, indicating potential retracement later.

Bitcoin price analysis: BTC breaks $37,500 previous low, finds support at $36,500
BTC/USD 4-hour chart. Source: TradingView

Bitcoin price has seen increased volatility over the past days. After further consolidation in an increasingly tighter triangle pattern, BTC/USD broke past previous local resistance levels and spiked as high as $40,000 major resistance.

This price action development sent a strong bullish signal across the market yesterday, indicating that another higher low could soon be set and more upside tested later in the week.

However, after some consolidation overnight, sharp decline began later today. Bitcoin price quickly lost over 7 percent until some support was found at $36,500. 

Since the previous low at $37,500 was broken in a clear way, BTC/USD has turned bearish again. Likely more downside will follow as a result of it after retracement later in the week.

Bitcoin price analysis: Conclusion 

Bitcoin price analysis is bullish today as we have seen a strong lower low set at $36,500 and a slight reaction higher. Therefore, BTC/USD is likely ready to move higher and regain some of the loss. 

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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