Bitcoin Price Analysis: BTC spikes to $44,000, reversal incoming?
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TL;DR Breakdown
- Bitcoin price analysis is bearish today.
- Previous resistance at $42,500 was broken yesterday.
- BTC/USD has reached $44,000 resistance.
Bitcoin price analysis is bearish today as we expect a retracement to follow after another push higher today. BTC/USD reached the $44,000 resistance and has since rejected further upside, indicating selling pressure returning.
The cryptocurrency market has seen bullish momentum over the last 24 hours. The market leader, Bitcoin, gained 2 percent. Meanwhile, Ethereum was up by 4.26 percent, with most of the top altcoins showing even better results.
Bitcoin price movement in the last 24 hours: Bitcoin retests $42,500 as support, rallies to $44,000
BTC/USD traded in a range of $42,458.59 – $43,925.55, indicating substantial volatility over the last 24 hours. Trading volume has increased by only 0.34 percent, totaling $29.37 billion, while the total market cap trades around $825.1 billion, resulting in a market dominance of 39.95 percent.
BTC/USD 4-hour chart: BTC has peaked at $44,000?
On the 4-hour chart, we can see the Bitcoin price action reaching the next major resistance at $44,000, with rejection for further upside seen as of now.
Bitcoin price action has seen consolidation formed over the past week. After a strong decline during the beginning of January, support was finally found around $41,000 on the 7th of January.
From there, Resistance was set at $42,500, with further tests of downside seen since. On Monday, BTC/USD saw the last retest of the downside, with the $40,000 mark quickly broken.
However, strong rejection was seen since, leading the Bitcoin price above previous highs. After a pause overnight, BTC/USD resumed its advance today, reaching the next resistance target at $44,000. Therefore, a strong higher high has been set, indicating a trend reversal.
Bitcoin Price Analysis: Conclusion
Bitcoin price analysis is bearish today as we expect a new higher high to bet set at $44,000. Bulls are finally exhausted, indicating that BTC/USD will likely move to retrace some of the gains over the next days.
While waiting for Bitcoin to move further, see our articles on Coinbase Vault vs Wallet, Cardano price prediction, and crypto tax-loss harvesting.
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