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Bitcoin price prediction: Bitcoin slows down below $56,000, prepares to retrace?

Bitcoin Price Prediction

TL;DR Breakdown

  • BTC breaks previous resistance at $54,000, which now acts as a support.
  • BTC peaked at 55,794 earlier today.
  • Next major resistance at $57,000.

Today’s Bitcoin price prediction is bearish as the market has lost its bullish momentum over the past hours. Therefore, we expect retracement towards the next support at $51,500 over the next 24 hours.

Bitcoin price prediction: Bitcoin slows down below $56,000, prepares to retrace? 1
Cryptocurrency heat map. Source: Coin360

The overall cryptocurrency market trades with mixed results today. Bitcoin has remained flat, while Ethereum is up by 2.5 percent. The worst performance is seen for Vechain (VET), as it is down by 5.5 percent. Meanwhile, Uniswap is among the best performers with a gain of 9.5 percent.

Bitcoin price prediction: Bitcoin slows down below $56,000, prepares to retrace? 

BTC/USD opened at $55,069 after slight bullish momentum yesterday and a strong push higher on Monday. Today, the market rejected further upside and the bullish momentum has diminished over the last 24 hours. This should lead BTC/USD towards a retracement later this week with the first support level seen at $51,500.

Bitcoin price movement in the last 24 hours

The BTC/USD moved in a range of $53,887 – $55,686 over the last 24 hours with a total trading volume of $45,5 billion, which is down by 13.56 percent from yesterday. The total market cap has returned above the $1 trillion mark, leading to total market dominance of 49.42 percent.

BTC/USD 4-hour chart – BTC testing $54,000 level as a support

On the 4-hour chart, we can see BTC/USD moving sideways for the past hours, indicating that we should soon see retracement towards $51,500 support.

Bitcoin price prediction: Bitcoin slows down below $56,000, prepares to retrace?
BTC/USD 4-hour chart. Source: TradingView

Overall, Bitcoin is still in a strong bearish momentum as the market lost almost 30 percent after peaking just below the $65,000 mark. Two strong waves lower were seen over the past two weeks, with consolidation area formed in-between around $54,000-$57,000, indicating that BTC will likely find resistance around this area on its way up later.

Late last week, the Bitcoin price spiked towards $48,000, after which a several-day consolidation in an increasingly tighter range was seen. On Sunday, another spike lower set a lower low right at the $47,000 mark. From there BTC/USD quickly rallied and moved above previous support at $54,000.

Right now, Bitcoin trades in the previously mentioned price range of $54,000-$57,000. Therefore, some further upside might be seen later today. However, overall, we expect BTC/USD to retrace over the upcoming days to establish a higher low from which to potentially reverse the current several week bearish price action structure.

The first support is seen at a $51,500 area. If BTC can establish a higher low there, we can expect the next upswing to take the Bitcoin price above $57,000. From there, BTC/USD should continue pushing higher over the upcoming weeks.

Bitcoin Price Prediction: Conclusion 

Bitcoin price prediction is bearish as the market shows signs of exhaustion after gaining almost 20 percent over the past days. Therefore, once the $54,000 breaks, we should see a move towards the next support at $51,500. 

While waiting for further Bitcoin price action development, see our guides on Bitcoin mining pools and Litecoin mining. Additionally, see our guide on Bitcoin debit cards, to learn more on how to spend your crypto.

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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