Bitcoin price analysis is bearish today as we have seen a failure to continue higher after a short push above the $21,500 previous major resistance. Since BTC/USD has already moved lower and set a lower local high, we expect another drop to follow. The next target should be the $20,000 previous support.
The market has traded in the red over the last 24 hours. Bitcoin lost 3.29 percent, while Ethereum 3.81 percent as the reaction lower was even stronger. Meanwhile, most of the altcoins have seen even further decline.
Bitcoin price movement in the last 24 hours: Bitcoin failed to set further higher high
BTC/USD traded in a range of $20,677.79 to $21,478.09, indicating substantial volatility over the last 24 hours. Trading volume has increased by 16.45 percent, totaling $21.57 billion, while the total market cap trades around $394.63 billion, resulting in a dominance of 42.33 percent.
BTC/USD 4-hour chart: BTC heading back to $20,000?
On the 4-hour chart, we can see strong selling pressure over the last hours as a retest of the $21,500 resulted in a quick drop lower. Likely, Bitcoin price will continue declining as the momentum is still strong, with the next target being the $20,000 previous support.
Bitcoin price action has seen the second wave higher slowly develop over the past week. From the last local higher low at $20,000, BTC/USD managed to return to the previous high at $21,500.
However, selling pressure took over as only a short break higher could follow before the resistance level was reclaimed. Steady consolidation followed overnight, with a slight retest of the resistance seen at $21,500.
Return to the downside followed over the past hours, leading to a drop lower. The $21,000 mark has already been breached, with the next support at $20,000 likely to be the next target.
Therefore, we expect the Bitcoin price to drop even further. If the $20,000 support fails to hold, a lot more downside should follow later in the week, with the next support as far as the $18,000 mark. In case the $20,000 mark holds, BTC/USD could continue sideways over the rest of the week.
Bitcoin price analysis: Conclusion
Bitcoin price analysis is bearish today as we have seen a slow pivot around the $21,500 resistance over the last 24 hours. After the last attempt to break higher ended with a lower local high set, BTC/USD started to quickly decline, indicating that more downside would follow by the end of the day.
While waiting for Bitcoin to move further, see our Price Prediction on UNUS SED LEO, BITO, and Klaytn.
