- Today’s bitcoin price analysis is bullish.
- BTC/USD consolidated further yesterday.
- The market has traded in a narrow range over the past few hours.
Today's bitcoin price analysis is bullish as we expect the current consolidation to be resolved by a breakout higher. BTC/USD has already hit a higher local low, suggesting a test of resistance at $39,500 soon.
Cryptocurrency heat map. Source: Coin360
The market has been slightly volatile over the past 24 hours. Bitcoin is up 0.92%, while Ether is up 1.23%. Ripple (XRP) was one of the outliers as it quickly rose by more than 8%.
Bitcoin price action over the past 24 hours: Bitcoin consolidates below $39,500, further declines rejected again
BTC/USD traded in a range of $38,432.93 to $39,267.04, indicating moderate volatility over the past 24 hours. Trading volume fell by 38% to a total of $16.2 billion. Meanwhile, the total market capitalization increased to $742.86 billion, dominating 42.49%.
BTC/USD 4-hour chart: BTC ready to break above $39,500?
On the 4-hour chart, we can see that the bitcoin price is once again approaching resistance at $39,500 and could break higher by the end of the day.
BTC/USD 4-hour chart. Source: TradingView
Bitcoin prices rose strongly in the first half of the week. However, selling pressure quickly resumed, causing BTC/USD to hit a new low of around $39,000.
Since then, the market has been consolidating sideways, with only a brief test to the upside seen yesterday. However, further downside has apparently been rejected, suggesting that the market is indeed slowly turning to the upside.
As a result, we expect the current resistance level of $39,500 to be clearly broken soon. The next small hurdle will be the previous local high at around $40,000, which means a strong push higher will be needed to invite enough buyers to participate in a more serious rally.
Nonetheless, the bitcoin price action has established a strong base for a further rally. After the higher local lows hit in the last few hours, a breakout attempt may soon begin, opening the way for further gains in the next few days.
Bitcoin Price Analysis: Conclusion
Today's bitcoin price analysis is bullish as we have seen slow consolidation leading to higher lows in the last few hours. It is likely that BTC/USD will break higher soon and look to make further higher highs.
While we wait for further developments in Ether, see our articles on the cryptocurrency Launchpad, DeFi 101, and what you should know about DAO.
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