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Bitcoin Price Analysis: BTC fails to breach $47,000, set for a reversal?

Cryptopolitan


TL;DR Breakdown

  • BTC continued to rally yesterday.
  • $47,000 resistance still holds.
  • Bitcoin is set to reverse today.

Bitcoin price analysis indicates bearish price action to follow over the next 24 hours as further upside could not be reached after another test of the $47,000 resistance. Therefore, we expect BTC/USD to reverse later today and move towards the $42,00 support later this week.

Cryptocurrency heat map. Source: Coin360

The cryptocurrency market trades with a slight increase over the last 24 hours. Market leaders, Bitcoin and Ethereum are up by 1.68 and 2.54 percent, respectively. Meanwhile, Cardano (ADA) is up by 16 percent and is among the best performers overall.

Bitcoin price movement in the last 24 hours: Bitcoin tests $47,000 resistance

BTC/USD traded in a range of $44,705.56 – $46,520.67, indicating a milf volatility over the last 24 hours. Trading volume has decreased by 9 percent and totals $33.4 billion, while the total market capitalization trades around $866.5 billion, resulting in market dominance of 45.3 percent.

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

On the 4-hour chart, we can see the Bitcoin price action failing to break the $47,000 resistance, which should lead towards a retracement later this week.

Bitcoin Price Analysis: BTC fails to breach $47,000, set for a reversal?
BTC/USD 4-hour chart. Source: TradingView

Bitcoin price action has continued to rally over the past week after a slightly higher high was set above the $41,000 mark at the end of July. From there, BTC/USD retraced and established a clear higher low from which to push higher over the following days.

What followed was a rally of over 20 percent to the $47,000 mark. BTC/USD slowed down from there and could not reach further highs today, indicating market exhaustion after a strong rally.

This Bitcoin price action development should lead towards another retracement later this week, with the $41,000-$42,000 previous resistance likely acting as support this time. From there, BTC/USD should rally further later this month and try to reach the next major resistance area around $53,00.

Bitcoin Price Analysis: Conclusion 

Bitcoin price analysis is bearish for the upcoming days as the market could not breach the $47,000 resistance and has since slowed down its advance. Therefore, BTC/USD needs another retracement over the next days before another rally can be attempted.

While waiting for Litecoin to move further, read our articles on Bitcoin Futures, Physical Bitcoin, as well as Proof of Stake vs Proof of Work.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.



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