Bitcoin Price Analysis: BTC retests $42,500 as support, prepares to spike higher?
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TL;DR Breakdown
- Bitcoin price analysis is bullish today.
- BTC/USD consolidated overnight.
- Slight [pullback seen today to $42,500.
Bitcoin price analysis is bullish today as another local higher low has been set over the past hours. Therefore, we expect BTC/USD to push higher again later today and look to clear the $44,000 resistance.
The crypto market has seen mostly bullish momentum over the last 24 hours. The market leader, Bitcoin, has declined 0.03 percent as a retracement was seen over the past hours. Meanwhile, Ethereum trades with a 1.22 percent gain, while Terra (LUNA) leads the market with over 6 percent gain.
Bitcoin price movement in the last 24 hours: Bitcoin rejects from $42,000 support
BTC/USD traded in a range of $42,669.04 – $43,346.69, indicating substantial volatility over the last 24 hours. Trading volume has declined by 41.41 percent, totaling 20.5 billion. Meanwhile, the total market cap trades around $812.8 billion, resulting in a market dominance of 39.5 percent.
BTC/USD 4-hour chart: BTC looks to continue higher?
On the 4-hour chart, we can see the Bitcoin price briefly retesting $42,500 support, likely as bulls prepare to push the market even higher.
Bitcoin price action has seen its first signs of recovery this week. After a massive spike lower on the 10th of January, BTC/USD quickly rebounded above previous highs, signaling potential trend reversal.
On Wednesday, another push higher took BTC above $44,000 next resistance. After some consolidation below the resistance, retracement began, leading to the $42,000 mark early on Friday.
Further downside was quickly rejected, leading to the $43,400 mark by the end of the day. Overnight, Bitcoin price consolidated, with a slight bearish pressure seen in the morning.
Over the past hours, BTC/USD quickly spiked to $42,500 previous support/resistance level, with rejection quickly after. Likely, bulls are now ready to push the market even higher, potentially meaning we could see a new higher high by the end of the weekend.
Bitcoin Price Analysis: Conclusion
Bitcoin price analysis is bullish today as we saw a higher low set yesterday, around $42,000, followed by a strong push higher. Therefore, the current test of $42,500 support should lead BTC/USD to a lot more upside later in the weekend.
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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