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Bitcoin price analysis: BTC retraces to $31,000, another test of downside next?

Bitcoin Price analysis 2022 05 13

Bitcoin price analysis is bearish today as we expect another drop lower to follow after a retracement of over 20 percent. Therefore, another lower high is set, and BTC/USD is ready to drop further again.

Bitcoin price analysis: BTC retraces to $31,000, another test of downside next? 1
Cryptocurrency heat map. Source: Coin360

The market has traded in the green over the last 24 hours. The leader, Bitcoin, gained 2.33 percent, while Ethereum gained 3.9 percent. Meanwhile, Polkadot (DOT) was the top performer, with over 21 percent gained.

Bitcoin price movement in the last 24 hours: Bitcoin finds resistance at $31,000

BTC/USD traded in a range of $28,031.78 to $30,924.80, indicating substantial volatility over the last 24 hours. Trading volume has declined by 41.01 percent, totaling $44.13 billion, while the total market cap trades around $571.8 billion, resulting in a dominance of 44 percent.

BTC/USD 4-hour chart: BTC looks to set a lower high?

On the 4-hour chart, we can see Bitcoin price action consolidating, indicating that a lower high has been set after a strong retracement.

Bitcoin price analysis: BTC retraces to $31,000, another test od downside next?
BTC/USD 4-hour chart. Source: TradingView

Bitcoin price action has continued to decline so far this week as another strong decline reached a new low around $25,500 early yesterday. Rejection for further downside immediately was seen, forming a massive reversal candle.

Since then, BTC/USD has seen a strong push higher above the $30,000 major price mark, with signs of resistance around $31,000. Consolidation followed since morning, meaning that a lower high has likely been set.

Therefore, Bitcoin price action should see a reversal soon. Likely previous low will be tested later in the weekend, with good potential that a higher low will finally be set.

Bitcoin price analysis: Conclusion 

Bitcoin price analysis is bearish today as we have seen a strong push higher lead to the $31,000 mark over the last 24 hours. Likely BTC/USD will reverse from there and continue retesting the downside 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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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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