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Bitcoin price analysis: BTC tests $29,500 support, rejection indicates more upside next?

Bitcoin Price analysis 2022 05 11

Bitcoin price analysis is bullish today as we expect the current reaction from the $29,500 support to result in a reversal over the rest of the week. Therefore, BTC/USD should soon return above $32,000 and begin to regain the previous day’s losses.

Bitcoin price analysis: BTC tests $29,500 support, rejection indicates more upside next? 1
Cryptocurrency heat map. Source: Coin360

The market has traded in the red over the last 24 hours as more selling was seen across the board. The leader, Bitcoin, declined by 2.66 percent, while Ethereum by over 5.62 percent. Meanwhile, most of the top altcoins have lost around 15-20 percent.

Bitcoin price movement in the last 24 hours: Bitcoin consolidates below $32,000

BTC/USD traded in a range of $29,323.23 to $32,013.40, indicating a moderate amount of volatility over the last 24 hours. Trading volume has declined by 11.38 percent, totaling $73.45 billion, while the total market cap trades around $597.2 billion, resulting in market dominance of 43.91 percent.

BTC/USD 4-hour chart: BTC rejects higher

On the 4-hour chart, we can see further tests of the downside being rejected right now. Likely Bitcoin price will look to reverse and head above the $32 local resistance over the next 24 hours.

Bitcoin price analysis: BTC tests $29,500 support, rejection indicates more upside next?
BTC/USD 4-hour chart. Source: TradingView

Bitcoin price action has lost over 27 percent from the last swing high at $40,000. After initially failing to reach the $29,500 next major support, BTC/USD moved into consolidation for more than 24 hours.

Therefore, a base from which to reverse is established. If further tests of the downside fail, BTC should soon see a reversal and push above the $32,000 resistance.

Once that is done, Bitcoin price action should head even higher to retest previous support levels as resistance. The first obvious mark would be the $34,000 previous support. However, likely even further retracement will follow when considering the substantial loss seen over the past week.

Bitcoin price analysis: Conclusion 

Bitcoin price analysis is bullish today as we have seen more consolidation after a strong decline earlier this week. Therefore, the rejection seen over the last hours could be the catalyst for reversal over the next days.

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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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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