Bitcoin price analysis: Bitcoin continues to retrace, bears target $37,500?

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  • BTC moved lower overnight.
  • Some retracement over the past hours.
  • Support at $37,500.

Bitcoin price analysis is bearish as the market moved lower overnight and has yet to reach the $37,500 support. Therefore, we expect further downside later today and a reversal from there later this week.

Bitcoin price analysis: Bitcoin continues to retrace, bears target $37,500?  1
Cryptocurrency heat map. Source: Coin360

The overall market trades with mixed results over the last 24 hours. Bitcoin trades flat while Ethereum has lost 1.41 percent. Rest of the market trades with similar mixed results, with Solana (SOL) being among the best performers with a gain of over 6.74 percent.

Bitcoin price movement in the last 24 hours

BTC/USD traded in a range of $38,176 – $39,576, indicating a moderate amount of volatility. Trading volume has remained flat and totals $39.6 billion. The total market cap stands at $734.4 billion, resulting in a market dominance of 45.2 percent.

BTC/USD 4-hour chart – BTC moved lower yesterday

On the 4-hour chart, we can see the Bitcoin price starting to retrace from the $41.333 local swing high, indicating that the $37,500 support will likely be tested later this week.

Bitcoin price analysis: Bitcoin continues to retrace, bears target $37,500?
BTC/USD 4-hour chart. Source: TradingView

BTC/USD 15-minute chart

Counter to the medium-term picture, on the 15 minute chart we can see BTC/USD currently retesting the $39,050 previous resistance as a support. Therefore, we might see another spike higher later today. However, if the $39,050 mark breaks, we expect the market to start pushing lower to the previously mentioned $37,500 support.

Bitcoin price analysis: Bitcoin continues to retrace, bears target $37,500?  2
BTC/USD 15-minute chart. Source: TradingView

Overall, Bitcoin price action starts to turn bullish once again after moving sideways for the past weeks. After the severe retracement in May, the market established support around $31,000 and rejected further downside heavily. This was the first indication that bears are exhausted and we can expect BTC/USD to start moving higher over the following months.

After trading in an increasingly tighter range at the end of May, BTC spiked lower on the 8th of June and retested the $31,000 support once again. This likely was the last spike lower before a much more serious bullish momentum begins.

Over the past week, we saw BTC set a strong higher high to the $41,333 mark, after which a several day consolidation was seen with a heavy rejection for further upside. This has led Bitcoin price towards a retracement to the $37,500 mark. Around the $37,500 we can also see the 50-61.8 Fibonacci retracement area, which would offer an excellent entry opportunity in terms of risk/reward.

From this support area, BTC/USD will likely start pushing higher again over the next days and attempt to set another higher high above $41,333 and the $42,000 resistance level. Once another higher high is set, we expect Bitcoin to start moving with a strong bullish momentum towards the previous all-time-high of $65,000.

Bitcoin Price Analysis: Conclusion 

Bitcoin price analysis is bearish for today as the market has still not retraced towards the $37,500 support level where 50-61.8 Fibonacci retracement area is located. Once the support is reached, we can expect BTC/USD to turn bullish again and start moving towards setting a new higher high.

While waiting for Bitcoin to retrace, read our guide on Cardano staking, how to cash out Bitcoin, and how to buy Bitcoin stock.

Source: cryptopolitan.com

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