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Bitcoin price analysis: BTC continues to respect $29,500, reversal to follow?

Bitcoin Price analysis 2022 06 04

TL;DR Breakdown

  • Bitcoin price analysis is bullish today.
  • BTC/USD retested downside yesterday.
  • Double bottom formed at $29,500.

Bitcoin price analysis is bullish today as we have seen another rejection for downside yesterday and steady consolidation since. Therefore, BTC/USD should soon start to reverse and look to move back above the $31,000 major resistance.

Bitcoin price analysis: BTC continues to respect $29,500, reversal to follow? 1
Cryptocurrency heat map. Source: Coin360

The market has traded mostly in the green over the last 24 hours, despite Bitcoin experiencing a slight decline of 0.12 percent. Ethereum gained 0.55 percent, while the rest of the top altcoins followed close by.

Bitcoin price movement in the last 24 hours: Bitcoin consolidates above $29,500

BTC/USD traded in a range of $29,375.69 to $29,876.26, indicating a moderate amount of volatility over the last 24 hours. Trading volume has declined by 20.65 percent, totaling $23 billion, while the total market cap trades around $566.45 billion, resulting in a dominance of 46.24 percent.

BTC/USD 4-hour chart: BTC prepares to push higher?

On the 4-hour chart, we can see bulls steadily taking over the momentum as further downside could not be reached overnight.

Bitcoin price analysis: BTC continues to respect $29,500, reversal to follow?
BTC/USD 4-hour chart. Source: TradingView

Bitcoin price action has seen swift retracement over the past days. From the previous high set at $32,250 on 31 May 2022, BTC/USD has already retraced over 9 percent to the $29,500 low.

From there, BTC attempted to continue higher during the middle of the week. However, bullish momentum ended as soon as the $30,500 mark, meaning a strong lower local high was set.

Bearish momentum returned soon after, pushing back to the $29,500 previous low and briefly testing below it. Since support was found around the same area, we can see that a double bottom reversal pattern is set, meaning more upside should soon follow.

Bitcoin price should next start moving higher as a result of this price action development. Most likely, we will see another attempt to break past $31,000 over the next days, which should open the way for a lot more upside later in June.

Bitcoin price analysis: Conclusion 

Bitcoin price analysis is bullish today as we have seen failure to break significant further lows over the last 24 hours. Therefore, BTC/USD should reverse from the $29,500 mark and look to head higher by the end of the weekend.

While waiting for Bitcoin to move further, see our Price Prediction on WEYU, MANA, and BAX.

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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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