Bitcoin price analysis: BTC drops below $37,000, further downside incoming?
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TL;DR Breakdown
- Bitcoin price analysis is bearish today.
- BTC/USD continued to decline.
- Slightly lower low set earlier.
Bitcoin price analysis is bearish today as we have seen more downside tested and the previous local low broken over the last 24 hours. Likely bears will take pause overnight, however, the market structure does indicate good potential for more downside.
The crypto market has seen more downside tested over the last 24 hours. The market leaders, Bitcoin and Ethereum, have both lost substantial amounts – 4.51 and 5.1 percent, respectively. Meanwhile, Solana (SOL) is among the worst performers, with a loss of over 9.43 percent.
Bitcoin price movement in the last 24 hours: Bitcoin sets slightly lower low as the retracement continues
BTC/USD traded in a range of $36,375.54 – $37,656.02, indicating a moderate amount of volatility over the last 24 hours. Trading volume has increased by 7.72 percent, totaling $19.54 billion, while the total market cap trades around $694.5 billion, resulting in a market dominance of 41.15 percent.
BTC/USD 4-hour chart: BTC pauses above $36,500
On the 4-hour chart, we can see the Bitcoin price action slowing down over the past hours, potentially leading to a slight upsurge overnight before more selling returns.
BTC/USD 4-hour chart. Source: TradingView
Bitcoin price has shown signs of strength so far this week. After previously continuing to set higher lows, the previous resistance at $38,500 was eventually broken overnight to the 1st of February.
Later on Tuesday, BTC/USD peaked at $39,300, leading to consolidation and a drop lower during the second half of yesterday. Overnight, the selloff continued, leading to the previous low tested.
After the support around $37,000 prevented more downside at first, a quick spike lower was seen today, leading to the belief that sellers want to regain control. However, considering the substantial decline over the past 24 hours, we could expect some upsurge overnight before more downside is tested.
Bitcoin price analysis: Conclusion
Bitcoin price analysis is bearish today as we expect more downside to be tested over the next 24 hours. However, some upsurge could be seen overnight as the $36,500 mark seems to offer support over the last hours.
While waiting for Bitcoin to move further, see our articles on Coinbase vs Coinbase Pro, Hardware vs Software wallet comparison, best Crypto trading platforms in the USA.
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