Bitcoin price analysis is bearish today as we have seen further lows tested at $18,000 yesterday and a quick reaction back to retest the $20,000 previous support as resistance earlier today. Therefore, BTC/USD should be ready to continue even lower over the next week, with the next target to the downside being the $16,000 mark.
The market has traded in the green over the last 24 hours. The leader, Bitcoin, gained 1.551 percent, while Ethereum by 4.07 percent. Meanwhile, the top altcoins have regained even more, with Litecoin gaining over 11 percent and being the top performer.
Bitcoin price movement in the last 24 hours: Bitcoin continues testing further downside
BTC/USD traded in a range of $17,708.62 to $19,892.29, indicating substantial volatility over the last 24 hours. Trading volume has increased by 37 percent, totaling $45 billion, while the total market cap trades around $371..65 billion, resulting in a dominance of 43.17 percent.
BTC/USD 4-hour chart: BTC ready to decline further?
On the 4-hour chart, we can see the Bitcoin price action quickly retesting the $20,000 previous support as resistance. Therefore, unless further upside is reached later today, we expect another push lower to follow soon, with the next target located at the $16,000 mark.
Bitcoin has continued to decline over the past week after the initial push lower was seen last week. From the last highs around $31,500, BTC/USD has declined over 40 percent to the current low at $18,000, meaning that sellers should soon start to become exhausted.
However, after some reaction to the $20,000 previous low at the beginning of this week, BTC failed to recover past $23,000. After a further retest of $20,000 support on Friday, small consolidation in an increasingly tighter range followed.
The $20,000 support did not hold for long as another spike lower followed early on Saturday. Selling continued all the way to the $18,000 mark, indicating another clear lower low set. Later in the day, another local consolidation was formed, leading to a quick retrace this morning.
This time, previous local support at $20,000 was retested as resistance, setting up a clear lower local high. Therefore, another push lower should soon follow from the newly found local resistance. Likely, selling will resume overnight, opening the way for another push lower early next week.
Considering the previous drop from around $21,000 to $18,000, we expect a similar break lower. Therefore, the next target to the downside should be the $16,000 mark. This would mean another drop of around 15 percent, with the total loss since last swing highs of more than 50 percent. From there, another quick retrace should set another lower local high.
Alternatively, a reversal could play out later in June if the Bitcoin price can strongly recover above $20,000. However, this scenario is unlikely when considering how persistent bearish pressure has been over the past weeks.
Bitcoin price analysis: Conclusion
Bitcoin price analysis is bearish today as the market has retested the previous low as resistance and slowed down its retrace over the past hours. This means another local lower high is set, and bears should soon be ready to push BTC/USD even lower. When considering the current bearish momentum, the next target to the downside will likely be the $16,000 mark.