- BTC has seen a massive move to the upside during the past hours.
- Bitcoin tested the $38,000 resistance with a clear rejection.
- Bitcoin should see a retracement in the upcoming hours.
Cryptocurrency heat map by Coin360
24 hour heat map indicates a bullish overall market sentiment. The strong rally could likely lead to retracement for much of the gains later today.
Bitcoin Price Prediction: BTC to retrace and push higher?
Our previous Bitcoin price prediction mentioned that BTC could continue consolidating along the several week descending triangle. However, as seen today, a clear breakout above the triangle`s descending resistance trend line has been made.
Yesterday, Bitcoin respected the $30,000 support once again, leading to a move towards $34,000 resistance. The resistance did hold Bitcoin from further highs for some time; however, after a brief rejection, the market skyrocketed towards the next strong resistance of $38,000.
Bitcoin price movement in the last 24 hours
The price of Bitcoin has moved in a range of $31,335 – $37,627 over the last 24 hours. The volatility right now is causing panic in the market, which is reflected by the massive 4-hour candle currently formed.
Bitcoin price chart by TradingView
BTC/USD 4-hour chart – Bitcoin heavily rejects further upside
Bitcoin price prediction yesterday mentioned that we might see a break above the several week descending resistance trendline. However, a move of this magnitude likely has surprised many traders.
Bitcoin has moved by over 10 percent in just a couple of hours. After a test of $34,000 resistance, Bitcoin made a rejection towards $32,000. However, this test was followed by a very strong and fast rally, leading BTC/USD from $34,000 to $38,000 in just a couple of hours.
As soon as Bitcoin reached the target, the price immediately reversed. This indicates that most of the long positions have already been closed. Therefore, the analyst expects Bitcoin to start retracing for the rest of the week.
A potential area where Bitcoin could retrace is the previously mentioned previous resistance of $34,000, which should now act as a support. Considering how fast the current impulse to the upside was, we might see even a deeper move to the downside.
Overall, it is hard to predict the precise movement of Bitcoin right now, as the market volatility has skyrocketed over the past hours. Before traders can start to consider a long position, BTC/USD needs to retrace some of the massive upswing and create a consolidation from which to base its next move to the upside.
Once Bitcoin manages to retrace and establish a clear base, traders could look for an entry back to the upside. The expectation should be that BTC/USD moves towards the next resistance of $40,000 and, possibly, even towards the all-time high of $42,000
Bitcoin Price Prediction: conclusion
Bitcoin price prediction for the rest of the day is bearish. BTC/USD has moved too high too fast and needs to cool off for a while. A key area to watch right now is the $34,000 previous resistance, which should now act as a support.
If Bitcoin can manage to retrace and build a stable consolidation base, the analyst expects further upside to be seen in the upcoming days. The next target to the upside is around $40,000 previous resistance. Likely, we might see Bitcoin moving even higher – towards the all-time high of $42,000.
For now, however, the best option is to wait for further price action development.
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.