Bitcoin Price Analysis: BTC retests support at $42,500, ready to break higher?

0
63

TL;DR Breakdown

  • Bitcoin price analysis is bullish today.
  • BTC/USD retested $42,500 support.
  • Clear higher low established.

Bitcoin price analysis is bullish today as we expect the current higher low above $42,500 to result in another push higher over the next 24 hours. Likely BTC/USD will finally break the $44,000 major resistance and set another strong higher high.

Bitcoin Price Analysis: BTC retests support at $42,500, ready to break higher? 1
Cryptocurrency heat map. Source: Coin360

The market has seen mixed results over the last 24 hours of trading. The market leader, Bitcoin, has lost 0.33 percent, while Ethereum 0.42 percent. Cardano (ADA) is the top performer today, with a gain of over 10 percent.

Bitcoin price movement in the last 24 hours: Bitcoin consolidates above $42,500

BTC/USD traded in a range of $42,691.02 – $43,724.67, indicating a moderate amount of volatility over the last 24 hours. Trading volume has seen a small decline of 1.07 percent, totaling $19.56 billion. Meanwhile, the total market cap trades around $818 billion, resulting in a market dominance of 39.33 percent.

BTC/USD 4-hour chart: BTC ready to continue higher?

On the 4-hour chart, we can see the Bitcoin price action having established strong base from which to move higher next week.

Bitcoin Price Analysis: BTC retests support at $42,500, ready to break higher?
BTC/USD 4-hour chart. Source: TradingView

Bitcoin price action has set a strong higher high this week, indicating a change of trend direction. After previously spiking to $40,000 on the 10th of January, the downside was quickly rejected, leading to a strong recovery over the next few days.

BTC/USD ultimately peaked at $44,400 on the 12th of January before moving into retracement later in the week. A strong higher low was set at $42,000 as 5 percent were quickly retraced.

From there, the Bitcoin price action pushed higher before moving into consolidation above $42,500. Likely BTC/USD has now established a strong enough base from which to continue higher over the upcoming days.

Bitcoin Price Analysis: Conclusion 

Bitcoin price analysis is bullish today as a strong higher low has been set above $42,500 over the last 24 hours. Therefore, BTC/USD is now ready to push higher again and set even further heights.

While waiting for Bitcoin to move further, see our articles on Coinbase Vault vs Wallet, Cardano price prediction, and crypto tax-loss harvesting.