Bitcoin price prediction: Bitcoin spikes to $40,000, prepares to retrace?

  • BTC found support of around $32,000 yesterday.
  • BTC/USD reached the $40,000 mark overnight.
  • Bears prepare for another move lower.

Today’s Bitcoin price prediction is bearish as the market found resistance around the $40,000 mark overnight and could not move any higher. Therefore, we expect BTC/USD to move lower over the next 24 hours to attempt to set another lower low.

Bitcoin price prediction: Bitcoin spikes to $40,000, prepares to retrace? 1
Cryptocurrency heat map. Source: Coin360

The overall market trades in the green over the last 24 hours. Bitcoin is up by 4 percent, while Ethereum almost 13 percent. The rest of the market follows this pattern with various but bullish results.

BTC/USD opened at $38,850 today after a slight bullish close yesterday took the market to the $40,000 mark. Since further upside was not seen earlier today, we can assume that another lower high is set, and the market will retrace further over the next 24 hours.

Bitcoin price movement in the last 24 hours

The BTC/USD price moved in a range of $35,995 – $39,835, indicating a substantial amount fo volatility. The 24 hour trading volume has decreased by 22.8 percent and totals $62.4 billion. Meanwhile, the total market cap stands at $709 billion, resulting in market dominance of 43.49 percent.

BTC/USD 4-hour chart – BTC prepares to move lower

On the 4-hour chart, we can see the Bitcoin price action failing to move above the $40,000 mark overnight, which should lead to a further downside over the next 24 hours.

Bitcoin price prediction: Bitcoin spikes to $40,000, prepares to retrace?
BTC/USD 4-hour chart. Source: TradingView

The overall market still continues to retrace from the all-time high of $65,000, set on the 14th of April. After an initial retracement to the $47,000 mark, BTC/USD consolidated for several days below $59,000 resistance.

From there, the Bitcoin price action started rapidly moving lower over the past week. From the $59,000 high, the market lost almost 50 percent until support was found at the $30,000 mark on the 19th of May.

After a brief move to retest the $42,000 previous support as a resistance, the market moved lower once again. Yesterday a strong higher low was set at the $32,000 mark, indicating that bears are slowly losing control.

However, when considering that a strong higher high is yet to bet set, the Bitcoin price could move to set another lower low below $30,000 later this week. Alternatively, if a higher low is set above the $30,000 support, we expect a much more severe several-day reversal later this week.

Bitcoin Price Prediction: Conclusion

Bitcoin price prediction is bearish as the market currently consolidates below the $40,000 resistance after a failure to move higher overnight. Therefore, we expect BTC/USD to move lower later this week to set another swing low.

While waiting for further Bitcoin price action development, read our guides on how to invest in Bitcoin, how many Bitcoin are left to mine, as well as how to sell Bitcoin.

Disclaimer. The information provided is not trading advice. holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

News Source