Bitcoin price analysis: BTC swiftly spikes to $34,500, retracement next?

Bitcoin Price analysis 2022 05 08
TL;DR Breakdown
  • Bitcoin price analysis is bullish today.
  • BTC/USD saw the $35,500 support broken overnight.
  • Support is currently found around $34,500.

Bitcoin price analysis is bullish today as we expect recovery to follow after another spike lower overnight leading to the next support at $34,500. Therefore, bears should be exhausted, and BTC/USD move for a significant retracement.

Bitcoin price analysis: BTC swiftly spikes to $34,500, retracement next? 1
Cryptocurrency heat map. Source: Coin360

The market has dropped even further over the last day. The leader, Bitcoin, lost 4.03 percent, while Ethereum a more substantial 5.65 percent. Meanwhile, Terra (LUNA) is the worst performer, with over 11 percent loss.

Bitcoin price movement in the last 24 hours: Bitcoin consolidates after another push lower

BTC/USD traded in a range of $34,545.39 – $35,993.05, indicating strong volatility over the last 24 hours. Trading volume has increased by 45.08 percent, totaling $36.2 billion, while the total market cap trades around $657.3 billion, resulting in market dominance of 41.47 percent.

BTC/USD 4-hour chart: BTC prepares to retrace?

On the 4-hour chart, we can see Bitcoin price action consolidating above $35,500 so far today as bulls likely are ready to take over control overnight.

Bitcoin price analysis: BTC spikes to $34,500, retracement next?
BTC/USD 4-hour chart. Source: TradingView

Bitcoin price action failed to reach further downside earlier this week as the $37,500 mark offered strong support. A higher local high was set above $39,000 on 4 May 2022, indicating that bulls are taking over the momentum.

However, a quick reversal followed fast. BTC/USD broke past the $37,500 mark on Thursday and pushed as low as the $35,500 mark. From there, consolidation followed for more than a day before another spike lower was seen overnight.

This time, the $34,500 mark offered support. Since Bitcoin price has lost over 14 percent since the last high, we expect sellers to be exhausted and reversal to soon follow.

Once BTC/USD begins to retrace, the most obvious resistance level to be reached is the $37,500 previous major support. From there, BTC will likely continue declining later this month. 

Bitcoin price analysis: Conclusion 

Bitcoin price analysis is bullish today as we have seen a strong drop lower again over the last 24 hours and the next support at $34,000 almost reached. Therefore, BTC/USD sellers are likely exhausted, and retracement should begin early next week. 

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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