Bitcoin price analysis: BTC pivots above $42,000, test of upside slowly incoming?
https://ift.tt/B7KJn0b
TL;DR Breakdown
- Bitcoin price analysis is bullish today.
- BTC/USD continued to consolidate above $42,000.
- Next resistance at $44,000
Bitcoin price analysis is bullish today as we expect push higher to follow the current consolidation around $42,000-$42,500 price area. Likely BTC/USD will move to set another lower high, with the closest resistance seen at $44,000.
The market has traded slightly in the green over the last 24 hours after a strong decline previously. The market leader, Bitcoin, has gained 0.88 percent, while Ethereum (ETH) has 1.3 percent. The rest of the top altcoins have seen similar results.
Bitcoin price movement in the last 24 hours: Bitcoin consolidates above $42,000
BTC/USD traded in a range of $41,852.57 – $42,992.55, indicating mild volatility over the last 24 hours. Trading volume has declined by 31 percent, totaling $16 billion, while the total market cap trades around $806.2 billion, resulting in a dominance of 42.23 percent.
BTC/USD 4-hour chart: BTC looks to reverse
On the 4-hour chart, we can see the Bitcoin price action slowly reversing from the $42,000 current low, likely leading to another lower high set.
Bitcoin price action has seen strong growth so far in February. After a several-day rally, a new major swing high was set just below $46,000 on the 10th of February, indicating a potential end to the several-month decline.
Since BTC/USD peaked below $46,000, a sharp retracement can be seen at the end of the week, leading to the current consolidation above $42,000. Overall, less than 9 percent has been retracted so far, indicating more downside should follow later in the month.
However, for now, BTC sellers will likely take a pause, allowing the market to set another lower high first. Therefore, we expect push higher from the $42,000 mark over the next 24 hours. Likely the next resistance at $44,000 will serve as the pivot point before more downside is reached late next week.
Overall, the Bitcoin price action still has plenty of room for further retracement. This means that after a short upsurge over the next 24 hours, we expect a lot more downside to follow as the market retraces the previous major upswing.
Bitcoin price analysis: Conclusion
Bitcoin price analysis is bullish today as the market has established strong consolidation above $42,000 after a sharp drop earlier this week. Therefore, bulls are likely to push BTC/USD higher later today and look to set a lower high before further retracement is seen next week.
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.
Cryptocurrency
