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Bitcoin price analysis: BTC spikes below $29,000, swiftly returns to previous consolidation area

Bitcoin Price analysis 2022 05 26
TL;DR Breakdown
  • Bitcoin price analysis is bullish today.
  • BTC/USD saw a strong spike to $28,000 earlier.
  • Reaction higher followed over the last hours.

Bitcoin price analysis is bullish today as we have seen a strong spike to $28,000 support and a quick reaction back into the previous consolidation area. Therefore, we expect more upside later today, potentially to retest the $30,000 previous local high.

Bitcoin price analysis: BTC spikes below $29,000, swiftly returns to previous consolidation area 1
Cryptocurrency heat map. Source: Coin360

The market has seen a swift drop over the last 24 hours as the previous support levels could not stand anymore. Bitcoin traded with a small gain of 0.13 percent as a swift recovery followed, while Ethereum is still 3.41 percent in the red.

Bitcoin price movement in the last 24 hours: Bitcoin breaks out of the previous consolidation

BTC/USD traded in a range of $28,261.91 to $29,972.64, indicating strong volatility over the last 24 hours. Trading volume has increased by 36.68 percent, totaling $36.14 billion, while the total market cap trades around $562.825 billion, resulting in market dominance of 45.3 percent.

BTC/USD 4-hour chart: BTC return to $30,000

On the 4-hour chart, we can see bullish momentum regaining control as a strong reaction higher followed the drop that was seen during the middle of the day.

Bitcoin price analysis: BTC spikes below $29,000, quickly returns to the previous consolidation area
BTC/USD 4-hour chart. Source: TradingView

Bitcoin price action has seen a lot more consolidation over the past ten days as the market was indecisive on where to move next. With clear support formed at $29,000 and resistance at $31,000, BTC/USD retested both during the last days.

However, a slightly lower local high was set yesterday around $30,000, indicating a potential break lower incoming. Overnight, sellers slowly piled in, taking BTC to the critical $29,000 major support.

Break lower did indeed follow as a quick spike to $28,000 was seen during the middle of the day. Over the following hours, a quick reaction higher was seen back above $29,000, potentially indicating that more upside is to come.

Overall, a clear bearish signal has been seen in the market. Once BTC sets another lower local high, we expect more downside to be tested by the end of the month.

Bitcoin price analysis: Conclusion 

Bitcoin price analysis is bullish today as we have seen a swift drop to $28,000 being met with a strong reaction higher. Therefore, more upside can be expected, likely to set another lower high.

While waiting for Bitcoin to move further, see our Price Prediction on WINkLink, BTCZ, and Tectonic.

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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