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Bitcoin price analysis: BTC retests upside at $20,800, quickly continues to decline

Bitcoin Price analysis 2022 10 31

TL;DR Breakdown

  • Bitcoin price analysis is bearish today.
  • BTC/USD saw further decline yesterday.
  • Failure to move higher was seen this morning.

Bitcoin price analysis is bearish today as we have seen a quick test of the upside result in a swift bounce lower. Therefore, BTC/USD should continue even higher and look to move past the $20,000 previous major support.

Bitcoin price analysis: BTC retests upside at $20,800, quickly continues to decline 1
Cryptocurrency heat map. Source: Coin360

The market has traded with mixed results over the last 24 hours. The leader, Bitcoin, saw a slight gain of 0.85 percent, while Ethereum by 0.79 percent. Meanwhile, Dogecoin (DOGE) was the top gainer, with almost 11 percent increase.

Bitcoin price movement in the last 24 hours: Bitcoin continued to retrace

BTC/USD traded in a range of $20,287.46 to $20,795.32, indicating moderate volatility over the last 24 hours. Trading volume has increased by 25.9 percent, totaling $41.7 billion, while the total market cap traded around $393.3 billion, resulting in market dominance of 38.74 percent.

BTC/USD 4-hour chart: BTC targets $20,000 next?

The 4-hour chart shows selling pressure return, likely leading past the $20,400 local support over the next hours.

Bitcoin price analysis: BTC retests upside at $20,800, swiftly continues to decline
BTC/USD 4-hour chart. Source: TradingView

Bitcoin price action has seen massive rally last week. From the $18,800 last support, BTC/USD gained over 12 percent until the $21,000 mark was reached.

Retrace followed on Thursday, resulting in a move to $20,000 support. Buying pressure returned from there, indicating that another wave higher will follow. However, BTC failed to move past the $21,000 resistance, resulting in a double top reversal formed.

Since then, Bitcoin price action has slowly declined back to the previous low. For now, the $20,400 mark offers some support, as a slight reaction higher was seen earlier today. Selling pressure has returned since then, leading BTC/USD to aggressively test the $20,400 support again.

Bitcoin price analysis: Conclusion 

Bitcoin price analysis is bearish today as we saw a double top formed and further selling yesterday. As retest of the upside quickly ended earlier today, we expect BTC/USD to drop even further and target the $20,000 support next.

While waiting for Bitcoin to move further, see our Price Predictions on XDC, Cardano, and Curve 

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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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