Bitcoin price analysis is bullish today as we have seen a further decline over the past days and support found at $27,250. Additionally, BTC/USD currently forms a strong bullish reversal candle, which indicates that retracement should follow early next week. Therefore, we expect swift recovery to begin overnight, with the $28,250 previous support as the first target.
Cryptocurrency heat map. Source: Coin360
The market has traded in the red over the last 24 hours as the selloff continued across the board. The leader, Bitcoin, lost 3.62 percent, while Ethereum around 5 percent. The rest of the top altcoins tested an even greater downside.
Bitcoin price movement in the last 24 hours: Bitcoin drops 5 percent again, begins reversal consolidation
BTC/USD traded in a range of $27,049.04 to $28,721.02, indicating strong volatility over the last 24 hours. Trading volume has declined by 19.22 percent, totaling $33.89 billion, while the total market cap trades around $526.56 billion, resulting in market dominance of 47.82 percent.
BTC/USD 4-hour chart: BTC ready to retrace?
On the 4-hour chart, we can see a clear 4-hour reversal candle forming, indicating that more upside should follow by the end of the day. Likely, the previous support at $28,250 will be soon tested as resistance, with a lot more potential for upside to be seen later next week.
BTC/USD 4-hour chart. Source: TradingView
Bitcoin price action has seen a strong break below the previous consolidation area this weekend. After a descending triangle consolidation pattern was formed at the start of June, BTC/USD saw weakness during the middle of the week as bulls failed to retest the descending trendline one more time.
From there, consolidation formed between $30,000 and $30,500, with increasingly lower local highs indicating a push lower to follow. The first advance lower followed on Friday, leading to a clear break of the $29,250 previous major support.
After a brief retest of previous support as a resistance, Bitcoin continued even lower early on Saturday. The next support target was reached at $28,250 early yesterday, potentially indicating a reversal to follow.
However, BTC/USD failed to reverse after several hours of consolidation late yesterday, leading to further selloff overnight to today. Bitcoin price quickly lost another 5 percent before support was found at $27,250. Around there, consolidation followed today, with rejection candle forming over the past hours.
Overall, if we can see strong price action over the next hours and a strong daily close, BTC should see very bullish next week. Likely the $28,250 previous support will be quickly reached, with a lot more room for a retracement to follow when considering how much was lost over the past days.
The most likely target for the upcoming retracement is the $29,250 previous major support. If the price can stabilize around there, a clear lower high would be set, opening the way for a lot more downside over the next weeks.
Alternatively, if recovery can move to $30,500, we would see only a slightly lower high. Bitcoin price could then attempt to set a higher low to reverse the current several-month downswing finally. Overall, much depends on how far bulls can manage to retrace the Bitcoin price next week.
Bitcoin price analysis: Conclusion
Bitcoin price analysis is bullish today as we have seen a strong decline over the past few days leading to more than 13 percent loss. Therefore bears should finally be exhausted, and the current support at $27,250 should serve as a pivot point for the market. If the current 4-hour bullish pin-bar candle can close strong, we might see the first push higher overnight.
While waiting for Bitcoin to move further, see our Price Prediction on UNUS SED LEO, BITO, and Klaytn.
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