Analysis

Bitcoin price analysis: BTC tests $44,000 major resistance, retracement incoming?

TL;DR Breakdown

Bitcoin price analysis is bearish today.BTC/USD continued higher late yesterday.Next major resistance at $44,000 reached over the last hours.

Bitcoin price analysis is bearish today as we expect the $44,000 major resistance to reverse the market. Likely BTC/USD will finally start to retrace as buyers are exhausted after a 20 percent rally over the past days.

Cryptocurrency heat map. Source: Coin360

The market has traded in the green over the last 24 hours. The market leader, Bitcoin, has seen a strong advance of 5.04 percent. Meanwhile, Ethereum follows with a 4.05 percent gain, and Ripple (XRP) leads with almost 17 percent gain.

Bitcoin price movement in the last 24 hours: Bitcoin breaks above $42,000, quickly moves to $44,000

BTC/USD traded in a range of $41,499.27 – $43,945.75, indicating strong volatility over the last 24 hours. Trading volume has increased by 64 percent, totaling $24.8 billion. Meanwhile, the total market cap trades around $827.77 billion, resulting in a market dominance of 41.44 percent.

BTC/USD 4-hour chart: BTC set to reverse?

On the 4-hour chart, we can see the next major resistance at $44,000 reached over the last hours, likely leading to a reversal and retracement over the next days.

BTC/USD 4-hour chart. Source: TradingView

The Bitcoin price action saw mixed signals over the last week. After only a slightly higher high set above $39,000, BTC/USD immediately reversed and declined past the previous local low.

Therefore, there was a strong indication that the market could collapse once again. However, after almost reaching the $36,000 next support area, bullish momentum quickly returned late on the 3rd of February.

Over the next 24 hours, Bitcoin price gained 15 percent to the $42,000 mark. After some consolidation, indicating reversal, BTC/USD spiked higher again late yesterday. 

Since then, bulls have pushed to the next resistance at $44,000. Considering how much the market has advanced over the past days, we expect retracement to finally follow.

Bitcoin price analysis: Conclusion 

Bitcoin price analysis is bearish today as we have seen the next major resistance at $44,000 reached. From there, BTC/USD will likely reverse and look to finally retrace after a 20 percent rally.

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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