logo

Bitcoin price analysis: BTC breaks below $20,000, violent reaction higher next?

Bitcoin Price analysis 2022 11 8

TL;DR Breakdown

  • Bitcoin price analysis is bullish today.
  • BTC/USD spiked below $20,000 this morning.
  • Support was found at $19,400.

Bitcoin price analysis is bullish today as we have seen a massive spike lower since midnight and a reaction at $19,400. Therefore, BTC/USD should see a strong reaction higher and move back above $20,000 to set a lower high.

Bitcoin price analysis: BTC breaks below $20,000, violent reaction higher next? 1
Cryptocurrency heat map. Source: Coin360

The market has traded in the red over the last 24 hours. The leader, Bitcoin, lost 4.92 percent, while Ethereum over 6.6 percent. Meanwhile, the rest of the market has seen an even further decline.

Bitcoin price movement in the last 24 hours: Bitcoin drops another 7 percent

BTC/USD traded in a range of $19,448.53 to $20,882.38, indicating extreme volatility over the last 24 hours. Trading volume has increased by 43.84 percent, totaling $67.9 billion, while the total market cap traded around $377.76 billion, resulting in market dominance of 38.59 percent.

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

On the 4-hour chart, we can see a reaction higher and a quick retest of the downside before reversal follows overnight. 

Bitcoin price analysis: BTC breaks down, violent reaction higher next?
BTC/USD 4-hour chart. Source: TradingView

Bitcoin price action has seen further highs tested over the past week as the previous consolidation area was broken at the end of October and a higher high was set at $21,000. After retesting previous resistance as support, BTC/USD started to move higher and spiked to $21,500.

However, the following retrace could not set a higher low despite some initial support seen at $20,600. Further selling continued overnight, quickly leading below $20,000 support.

Signs of support were finally found at $19,400, with signs of a reversal forming since. Likely Bitcoin price action will soon start moving to recover some fo the loss, with the $20,000 mark to be recovered first. 

Bitcoin price analysis: Conclusion 

Bitcoin price analysis is bullish today as we have seen a strong decline to $19,400 earlier and signs of support being found over the past hours. Therefore, BTC/USD should soon reverse and head back higher to set a lower high.

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

 

[the_ad_placement id=”writers”]

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.

Related News

Hot Stories

Cardano price analysis: ADA falls to $0.3800 support, what is next for the crypto?
TRON Academy Sponsors Princeton Blockchain Club and Partners with TRON Climate Initiative
Is Solana Dead? SOL Resurrects at 114%
Filecoin price analysis: FIL shows bearish at $5.12 as selling pressure intensifies
Bitcoin sells at a 60% premium in Nigeria as the government shifts to a cashless policy

Follow Us

Industry News

Bitcoin sells at a 60% premium in Nigeria as the government shifts to a cashless policy
China's step towards cryptocurrency regulations
Read why Floki Inu supply is set to decrease by 4.2 trillion FLOKI tokens
Chinese central bank former exec explains why China is wary of crypto
Binance burns 16m worth of BNB tokens; transitions from the ERC20 version of BNB to BEP2

Add Your Heading Text Here