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Bitcoin Price Analysis: BTC spikes to $29,500, strong reversal to follow? 

Cryptopolitan


TL;DR Breakdown

  • BTC moved lower overnight.
  • Support around $29,500 reached.
  • BTC/USD likely to reverse today.

Bitcoin price analysis indicates bullish momentum to be seen over the next 24 hours as $29,500 support was reached over the last hours, and further downside is rejected as of now. Therefore, we expect BTC/USD to regain some of the loss seen over the last 24 hours and look to retest the previous support of around $31,000 as a resistance.

Cryptocurrency heat map. Source: Coin360

The overall market trades with a strong bearish momentum over the last 24 hours. Bitcoin has declined by 3.2 percent, while Ethereum 3.1 percent. Cardano (ADA) is among the worst performers, with a loss of around 7.4 percent.

Bitcoin price movement in the last 24 hours: Bitcoin finally breaks $31,000 support

BTC/USD traded in a range of $29,362.26 – $31,364.08, indicating strong volatility for the market. 24-hour trading volume has increased by 35.4 percent and totals $24.3 billion. Meanwhile, the total market cap has lost 5 percent and totals $557.14 billion, resulting in a market dominance of 46.6 percent.

BTC/USD 4-hour chart: BTC finally reaches $29,500

On the 4-hour chart, we can see the Bitcoin price quickly spiking to $29,500 major support area over the past hours and rejecting further downside.

Bitcoin Price Analysis: BTC spikes to $29,500, reversal to follow?
BTC/USD 4-hour chart. Source: TradingView

BTC/USD 4-hour chart. Source: TradingView

Bitcoin price action trades within a strong decline over the last weeks. This was a result of a rapid decline at the end of June when BTC/USD made a strong push lower below the $29,000 mark and retraced to the $36,500 over the following weeks.

However, bulls could not sustain momentum, and a clear lower low was set on the 4th of July around $36,000 resistance. From there, BTC/USD moved lower with several lower highs set over the past weeks.

Last week strong support was found around $31,000, where the market consolidated for several days. A brief spike to the $32,500 mark was set, and a rapid decline started from there at the end of the weekend.

Yesterday, BTC/USD declined further, breaking past the $31,000 support and reaching the next major support area around $29,500 earlier today. Bitcoin price rejected further downside, and we can expect BTC to rally over the next 24 hours back towards the $31,000 resistance, which previously acted as a support. 

Once the $31,000 resistance is retested, we will likely see another strong push to the downside as bears likely want to finally break the major support area around $29,000-$30,000.

Bitcoin Price Analysis: Conclusion 

Bitcoin price analysis indicates reversal to follow later today as the market has reached a major support area of around $29,500 over the last 24 hours and further downside is rejected as of now. Therefore, we expect BTC/USD to regain some of the loss seen over the last 24 hours and retest the $31,000 support as a resistance.

While waiting for Bitcoin to retrace, read our guides on DeFi advantages, Bitcoin fees, as well as what can you buy with Bitcoin.

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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