Analysis

Bitcoin Price Analysis: BTC retraces again, ready to reverse above $42,500?

TL;DR Breakdown

Bitcoin price analysis is bullish today.BTC/USD peaked below $44,000 yesterday.Support at $42,500 currently tested.

Bitcoin price analysis is bullish today as we expect reversal from the $42,500 support after a very slow retracement. Therefore, BTC/USD has established another higher low and will likely soon begin to push higher again.

Cryptocurrency heat map. Source: Coin360

The market has seen a steady decline over the last 24 hours. The market leader, Bitcoin, has lost 1.29 percent, while Ethereum 2.97 percent. Meanwhile, Cardano (ADA) has moved counter to the overall trend with a gain of almost 6 percent.

Bitcoin price movement in the last 24 hours: Bitcoin slowly retraced to $42,500 support

BTC/USD traded in a range of $42,460.70 – $43,436.81, indicating a moderate amount of volatility over the last 24 hours. Trading volume has declined by just 0.45 percent, totaling $19.5 billion. The total market cap trades around $807 billion, resulting in a market dominance of 39.68 percent.

BTC/USD 4-hour chart: BTC looks to reverse from $42,500?

On the 4-hour chart, we can see the Bitcoin price action finding a higher low at $42,500 after a steady decline over the last 24 hours.

BTC/USD 4-hour chart. Source: TradingView

Bitcoin price action saw recovery last week, leading to a strong high local high set slightly above $44,000. The reaction higher clearly indicates an upcoming change in trend direction, meaning that we can expect more upside reached by the end of this week.

The following retracement to $42,000 established a strong higher low, further indicating bullish market structure forming. However, the following move higher did peak below $44,000, setting a slightly lower high.

Since then, the Bitcoin price action has slowly retraced and set a higher low around $42,500. Likely from there, we will see BTC/USD push higher again later this week.

Bitcoin Price Analysis: Conclusion 

Bitcoin price analysis is bullish today as another higher low currently gets established at $42,500. Therefore, we expect another push higher to follow soon, likely leading to further upside reached above the last week`s highs.

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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