Bitcoin Price Analysis: BTC retraces below $56,000, more downside to follow?

TL;DR Breakdown

  • Bitcoin price analysis is bearish today.
  • BTC/USD spiked to $54,000 yesterday.
  • A second test of the support is currently in play.

Bitcoin price analysis is bearish today as a strong move lower was seen overnight after a slight rally higher late yesterday. Likely BTC/USD will continue lower as bearish momentum has returned.

Bitcoin Price Analysis: BTC retraces below $56,000, more downside to follow? 1
Cryptocurrency heat map. Source: Coin360

The overall market traded mostly in the red over the last 24 hours, with the market leader, Bitcoin, down by 3.61 percent. Meanwhile, Binance Coin (BNB) is among the best performers, with a gain of 6.92 percent.

Bitcoin price movement in the last 24 hours: Bitcoin moves towards $54,000 again

BTC/USD traded in a range of $54,370.97 – $57,418.19, indicating a moderate amount of volatility over the last 24 hours. Trading volume has increased by 0.41 percent and totals $40.32 billion, while the total market cap trades around $1.04 trillion, resulting in market dominance of 45.4 percent.

BTC/USD 4-hour chart: BTC targets $53,000 next?

On the 4-hour chart, we can see bearish momentum attempting to breach $54,000 local support, indicating more downside will follow today.

Bitcoin Price Analysis: BTC retraces below $56,000, more downside to follow?
BTC/USD 4-hour chart. Source: TradingView

Bitcoin price has seen a strong performance so far in October. After several tests of the $41,000 support at the end of September, bearish momentum reversed, and a rapid move higher began on the 1st of October.

BTC/USD moved to $48,500 and, after some consolidation, broke further on the 4th of October. Eventually, the next resistance was found below $56,000. This time, a several-day consolidation was seen again until another slight rally was seen on Monday, taking BTC to $58,000.

However, from there, Bitcoin price action reversed, moving back below $56,000. A spike lower was set late yesterday to the $54,000 mark, indicating bearish momentum building up. Over the past hours, BTC/USD reacted higher to retest the $56,000 mark as resistance again before pushing lower again. 

Bitcoin Price Analysis: Conclusion 

Bitcoin price analysis is bearish today as a local lower low was set just above $56,000 overnight, leading BTC to more downside earlier today. Therefore, we expect the bearish momentum to continue, with the next support at $53,000 as a likely target.

While waiting for Bitcoin to move further, read our guides on Best NFT marketplaces, NFT history and development, as well as NFT Music.

Disclaimer. The information provided is not trading advice. 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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