- Bitcoin price analysis is bearish today.
- Bitcoin/USD continues to fall.
- The low set a little earlier.
Today's bitcoin price analysis is bearish as we have seen more downside tests and a break of the previous local lows in the last 24 hours. The short side may pause overnight, but market structure does suggest more downside room.
Cryptocurrency heat map. Source: Coin360
The cryptocurrency market has experienced more downside testing in the last 24 hours. Market leaders Bitcoin and Ether both lost significant amounts of money – 4.51% and 5.1%, respectively. Meanwhile, Solana (SOL) was one of the worst performers, down more than 9.43%.
Bitcoin price action over the past 24 hours: slightly lower lows as retracement continues
BTC/USD traded in a range of $36,375.54 to $37,656.02, indicating moderate volatility over the past 24 hours. Trading volume increased by 7.72% to a total of $19.54 billion, for a total market capitalization of approximately $694.5 billion and a market dominance of 41.15%.
BTC/USD 4-hour chart: BTC stopped above $36,500
On the 4-hour chart, we can see a slowdown in bitcoin prices over the past few hours, which could lead to a small overnight rally before being rewarded with more selling.
BTC/USD 4-hour chart. Source: TradingView
The bitcoin price has shown signs of strength so far this week. After continuing to hit higher lows previously, the previous resistance level of $38,500 was finally broken overnight on Feb. 1.
Late Tuesday, BTC / USD reached a peak of $39,300, leading to consolidation and declines in the second half of yesterday. Overnight, the sell-off continued, leading to a test of the previous lows.
After initial support around $37,000 prevented more declines, today saw a rapid decline leading to the belief that sellers are looking to regain control. However, given the sharp drop over the past 24 hours, we can expect some overnight gains before testing more downside.
Bitcoin Price Analysis: Conclusion
Today's bitcoin price analysis is bearish as we expect more downside to be tested in the next 24 hours. However, there could be some upside overnight as the $36,500 mark seems to have provided support over the last few hours.
While waiting for further developments in Bitcoin, see our articles on Coinbase vs. Coinbase Pro, hardware vs. software wallets, and the best cryptocurrency trading platforms in the US.
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