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Bitcoin price analysis: BTC retests $21,000, double top formed?

Bitcoin Price analysis 2022 10 29
TL;DR Breakdown
  • Bitcoin price analysis is bearish today.
  • BTC/USD returned to $21,000 resistance overnight.
  • Sharp reaction lower seen this morning.

Bitcoin price analysis is bearish today as we have seen a strong higher low set and a strong rally back to $21,000 resistance, where a clear reaction lower was seen. Therefore, BTC/USD has likely formed a double-top reversal pattern and is now ready to decline even further.

Bitcoin price analysis: BTC retests $21,000, double top formed? 1
Cryptocurrency heat map. Source: Coin360

The market has traded in the green over the last 24 hours. The leader, Bitcoin, gained 0.99 percent, while Ethereum a more substantial 5.19 percent. Meanwhile, Dogecoin continues to dominate the market with almost 70 percent gained.

Bitcoin price movement in the last 24 hours: Bitcoin lacks further buying

BTC/USD traded in a range of $20,566.48 to $20,988.39, indicating mild volatility over the last 24 hours. Trading volume has declined by 20.82 percent, totaling $39.15 billion, while the total market cap traded around $401.2 billion, resulting in market dominance of 38.84 percent.

BTC/USD 4-hour chart: BTC looks to retrace again?

On the 4-hour chart, we can see a strong reaction at the $21,000 previous high, which should result in another move lower overnight.

Bitcoin price analysis: BTC retests $21,000, double top formed?
BTC/USD 4-hour chart. Source: TradingView

Bitcoin price action has seen an increase in volatility this week. After consolidation in an increasingly tighter range earlier in October, BTC/USD saw a massive spike above previous highs on Tuesday.

A new strong swing high was quickly reached at $21,000, where reversal began immediately. Retrace to retest the previous major resistance at $20,000 followed, setting up a base from which to rally higher once more.

During the second half of Yesterday, BTC/USD started to move higher once more. However, Bitcoin price action saw momentum diminish overnight, leading to a weak test of the $21,000 mark. Since then, we can see signs of selling pressure retuning, likely leading to another drop over the next 24 hours.

Bitcoin price analysis: Conclusion 

Bitcoin price analysis is bearish today as we have seen signs of double top formation over the past hours as the previous swing high at $21,000 was rejected over the past hours. Therefore, BTC/USD is ready to reverse and look to set a much deeper retrace over the next days.

While waiting for Bitcoin to move further, see our articles on Siacoin wallet, Pi Wallet, and LTC Wallet Review.

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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