Bitcoin Price Analysis: BTC slowly consolidates above $54,000, prepares to retrace?

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TL;DR Breakdown

  • Bitcoin price analysis is bullish today.
  • BTC/USD continues to respect support at $54,000.
  • Closest resistance at $56,000

Bitcoin price analysis is bullish today as we expect a retracement to follow after failure to reach more downside over the last 24 hours. Therefore, BTC/USD is set to recover some of the loss seen on Friday, with the closest resistance seen at $56,000 previous support.

Bitcoin Price Analysis: BTC slowly consolidates above $54,000, prepares to retrace? 1
Cryptocurrency heat map. Source: Coin360

The market overall has seen bearish sentiment over the last 24 hours. The market leaders, Bitcoin and Ethereum, are both in the red, with a loss of 0.98 and 1.02 percent. Meanwhile, Terra (LUNA) is one of the exceptions, with a gain of over 5 percent.

Bitcoin price movement in the last 24 hours: Bitcoin consolidates above $54,000

BTC/USD traded in a range of $53,806.36 – $55,223.47, indicating small volatility over the last 24 hours. Trading volume has declined by 24.84 percent, totaling $24.4 billion, while the total market cap trades around $1 trillion, resulting in a market dominance of 41.79 percent.

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

On the 4-hour chart, we can see the Bitcoin price failing to move lower, likely leading to a reversal over the next 24 hours.

Bitcoin Price Analysis: BTC consolidates above $54,000, prepares to retrace?
BTC/USD 4-hour chart. Source: TradingView

Bitcoin price has seen previous bearish momentum slow down this week. After a strong decline last week to the $56,000 mark, the support was retested again early this week.

Bears failed to breach lower, resulting in a consolidation formed on Tuesday. From there, BTC/USD rallied to set another lower high, around $59,000, before moving lower again.

This time, the $56,000 support failed, leading to the next support at $54,000 quickly reached. However, since then, the Bitcoin price action has consolidated close to the low as the market is indecisive on where to go next. The most likely scenario is a retracement from the previous lows as bears are likely exhausted after a strong selloff on Friday.

Bitcoin Price Analysis: Conclusion 

Bitcoin price analysis is bullish today as we expect more upside to be tested later today after the $54,000 support prevented further downside over the last 24 hours. Therefore, BTC/USD could see the $56,000 support tested as resistance later today.

While waiting for Bitcoin to move further, see our articles on the Best Crypto Wallet 2021, Decred Wallet, and Ripple vs SEC.