August 7, 2022

JIC News

The latest cryptocurrency market news for today.

Bitcoin price analysis: BTC briefly spikes above $40,000, slow move lower to follow? 

2 min read
  • Bitcoin price analysis is bearish today.
  • BTC/USD broke higher high overnight.
  • Market looks to return to the downside.

Bitcoin price analysis is bearish today as we have seen a quick spike higher to $40,000 met with rejection. Therefore, BTC/USD should look to decline over the next days, this time likely to set a higher low.

Cryptocurrency heat map. Source: Coin360

The market has traded mostly in the green over the last 24 hours. The leader, Bitcoin, has traded sideways with a small loss of 0.13 percent, while Ethereum posted a solid gain of 3.15 percent. The rest of the top altcoins have seen even better gains.

Bitcoin price movement in the last 24 hours: Bitcoin sets higher high, looks to pivot lower

BTC/USD traded in a range of $38,609.65 – $40,005.35, indicating mild volatility over the last 24 hours. Trading volume has declined by 39.65 percent, totaling $22.36 billion, while the total market cap trades around $744.4 billion, resulting in a dominance of 41.71 percent.

BTC/USD 4-hour chart: BTC looks to reverse

On the 4-hour chart, we can see the Bitcoin price slowly reversing after a clear higher high was set above $39,500, indicating bullishness for the overall price structure.

BTC/USD 4-hour chart. Source: TradingView

Bitcoin price action has traded with strong bearish momentum this week. Further lows were tested until the current low at $34,500 was reached on the 24th of February.

From there, bulls quickly regained control, pushing BTC/USD back to the $39,500 previous resistance. At first, resistance was found at $39,500, with another push higher seen late yesterday.

This time, bulls broke to the $40,000 major price mark, establishing a clear higher high. Therefore, the first sign for a trend reversal has been set. If the upcoming retracement established a higher low, we could see the current several-week trend finally reverse over the next week.

Bitcoin price analysis: Conclusion

Bitcoin price analysis is bearish today as we have seen a higher high set just above $40,000 and an immediate rejection lower. Therefore, another test of downside should follow, likely to set a higher low.

While waiting for Ethereum to move further, see our articles on how to buy land in Metaverse, How to close a Coinbase account, and how to transfer crypto from Coinbase to Robinhood.

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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