Today’s Bitcoin price analysis is bullish as we saw a huge bearish bounce and reaction to $19,400 from midnight. Therefore, BTC/USD should see a strong reaction higher and move back above $20,000 to set a lower high.
The market has been trading in the red for the past 24 hours. Bitcoin, the leader, lost 4.92% and Ethereum more than 6.6%. Meanwhile, the rest of the market has seen further declines.
Bitcoin price movement in the last 24 hours: Bitcoin fell another 7%
BTC/USD traded in a range of $19,448.53 to $20,882.38, indicating extreme volatility over the past 24 hours. Trading volume increased by 43.84% to $67.9 billion, while the total market value was traded at $377.76 billion, resulting in a market dominance of 38.59%.
Bitcoin/USD 4-Hour Chart: Is Bitcoin Ready to React Higher?
On the 4-hour chart, we can see a higher reaction and a quick retest of the downtrend before an overnight reversal follows.
Bitcoin price action saw a new high last week as the previous consolidation zone at the end of October was broken and a high was set at $21,000. After retesting the previous resistance as support, BTC/USD started moving higher and reached $21,500.
However, with some initial support seen at $20,600, the next retracement fails to establish a higher low. More selling continued overnight and quickly broke below the $20,000 support.
Signs of support were finally found at $19,400, after which there were signs of a reversal. Bitcoin price action is likely to begin soon to recover some of the losses, and $20,000 must be recovered first.
Bitcoin Price Analysis: Conclusion
Bitcoin price analysis is bullish today as we saw a sharp drop to $19,400 and signs of support in the past hours. Therefore, BTC/USD should soon reverse and move higher to set a lower high.
While you wait for Ethereum to move further, check out our price predictions on XDC, Cardano and Curve.