Bitcoin price analysis: BTC tests below $29,000, break lower incoming?

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Bitcoin price analysis is bearish today as we have seen a lower high set around $30,500 and consolidation late yesterday, leading to another local spike lower. Since the previous low was broken, we expect BTC/USD to drop even further and target the $27,500 mark next.

Bitcoin price analysis: BTC tests below $29,000, break lower incoming? 1
Cryptocurrency heat map. Source: Coin360

The market has traded in the red over the last 24 hours. Bitcoin lost 3.21 percent, while Ethereum a more substantial 4.16 percent. Meanwhile, the rest of the top altcoins declined even further with 7-9 percent losses.

Bitcoin price movement in the last 24 hours: Bitcoin fails to retrace further, begins another wave lower

BTC/USD traded in a range of $28,804.17 to $30,618.72, indicating a moderate amount of volatility over the last 24 hours. Trading volume has increased by 12.27 percent, totaling $30.28 billion, while the total market cap trades around $555.44 billion, resulting in market dominance of 44.53 percent.

BTC/USD 4-hour chart: BTC ready to break $29,000 support?

On the 4-hour chart, we can see strong selling pressure over the last hours, indicating that another push lower can be expected later today.

Bitcoin price analysis: BTC tests below $29,000, break lower incoming?
BTC/USD 4-hour chart. Source: TradingView

Bitcoin price has slowed down its retracement over the last days after the last local high was set at $31,350. From there, a higher local low was set at $29,000 before another push higher was attempted.

This time, BTC/USD failed to retrace even further, with consolidation formed yesterday below $30,500. Bearish momentum increased overnight, leading BTC to drop lower over the last hours.

Currently, Bitcoin tests the $29,000 previous low. Likely, break lower is imminent, and the next target at $27,500 will be reached tomorrow if a sudden reversal does not follow overnight.

In this scenario, the Bitcoin price should see a lot more downside over the rest of May. However, if a clear higher low can be set above $25,500, BTC/USD could see a reversal of the several-week bearish trend.

Bitcoin price analysis: Conclusion 

Bitcoin price analysis is bearish today as we saw failure to move higher and consolidation below $30,500 yesterday. Therefore, today’s slight bearish momentum will likely lead BTC/USD to break down and push towards the $27,500 next major support.

While waiting for Bitcoin to move further, see our articles on how to buy BTT, Elongate, and CRO coins.