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Bitcoin price analysis: BTC retests $29,200 previous low, swift spike higher next?

Bitcoin Price analysis 2022 06 07
TL;DR Breakdown
  • Bitcoin price analysis is bullish today.
  • BTC/USD saw a strong decline overnight.
  • Strong support was found at $29,200 again.

Bitcoin price analysis is bullish today as we have seen a quick drop back to the previous support end with a slight reaction higher and consolidation since morning. Therefore, BTC/USD should see a quick retrace and another lower high set around $31,000 over the next 24 hours.

Bitcoin price analysis: BTC retests $29,200 previous low, swift spike higher next? 1
Cryptocurrency heat map. Source: Coin360

The market has traded in the red over the last 24 hours as strong spikes lower were seen across the board. The leader, Bitcoin, lost 4.42 percent, while Ethereum 3.96 percent. Meanwhile, Binance Coin (BNB), Solana (SOL), and Avalanche (AVAX) are the worst performers among the major altcoins.

Bitcoin price movement in the last 24 hours: Bitcoin retests previous lows, looks to retrace

BTC/USD traded in a range of $29,311.68 to $31,545.18, indicating moderate volatility over the last 24 hours. Trading volume has declined by 0.54 percent, totaling $30.46 billion, while the total market cap trades around $570.43 billion, resulting in a dominance of 46.41 percent.

BTC/USD 4-hour chart: BTC/USD begins to push higher

On the 4-hour chart, we can see bulls regaining momentum over the last hours, indicating that a new lower high will likely be established over the next 24 hours. The first obvious target for resistance is located around $31,000.

Bitcoin price analysis: BTC retests $29,200 previous low, swift spike higher next?
BTC/USD 4-hour chart. Source: TradingView

Bitcoin price action has seen volatility increase once more over the past days. After several days of consolidation above $29,200 at the end of last week, BTC/USD quickly spiked higher overnight to yesterday.

Price action peaked at $31,750, meaning that a clear lower high is set, and BTC is ready to return lower later. More downside did indeed follow quickly as overnight to today all of previous gain was retraced.

This means that the market effectively trades in an increasingly tighter descending triangle pattern. As clear support has already reversed BTC, we expect a rally higher to follow overnight.

The first minor resistance could be seen around $30,500, while the next target is located around $31,000. If either of these levels holds Bitcoin price from further upside, we will see another strong lower high set.

From there, BTC/USD should return back to the $29,200 support. If it gets broken later in the week, a lot more downside can be expected later in June. Alternatively, if the current high at $31,750 gets broken, a major market structure reversal could be played out over the next weeks.

Bitcoin price analysis: Conclusion 

Bitcoin price analysis is bullish today as we have seen a quick spike lower benign met with strong support at the previous lows around $29,200. BTC/USD has already started to retrace and returned above $30,000, indicating more upside to come overnight and early tomorrow.

While waiting for Bitcoin to move further, see our Price Predictions on UNUS SED LEO, BITO, and Klaytn.

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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