BTC Price Analysis: BTC fails to breach $47,000, set for a reversal?
2 min readTL;DR Breakdown
- BTC continued to rally yesterday.
- $47,000 resistance still holds.
- BTC is set to reverse today.
BTC price analysis indicates bearish price action to follow over the next 24 hours as further upside could not be reached after another test of the $47,000 resistance. Therefore, we expect BTC/USD to reverse later today and move towards the $42,00 support later this week.
The cryptocurrency market trades with a slight increase over the last 24 hours. Market leaders, BTC and ETH are up by 1.68 and 2.54 percent, respectively. Meanwhile, Cardano (ADA) is up by 16 percent and is among the best performers overall.
BTC price movement in the last 24 hours: BTC tests $47,000 resistance
BTC/USD traded in a range of $44,705.56 – $46,520.67, indicating a milf volatility over the last 24 hours. Trading volume has decreased by 9 percent and totals $33.4 billion, while the total market capitalization trades around $866.5 billion, resulting in market dominance of 45.3 percent.
BTC/USD 4-hour chart: BTC prepares to reverse?
On the 4-hour chart, we can see the BTC price action failing to break the $47,000 resistance, which should lead towards a retracement later this week.
BTC price action has continued to rally over the past week after a slightly higher high was set above the $41,000 mark at the end of July. From there, BTC/USD retraced and established a clear higher low from which to push higher over the following days.
What followed was a rally of over 20 percent to the $47,000 mark. BTC/USD slowed down from there and could not reach further highs today, indicating market exhaustion after a strong rally.
This BTC price action development should lead towards another retracement later this week, with the $41,000-$42,000 previous resistance likely acting as support this time. From there, BTC/USD should rally further later this month and try to reach the next major resistance area around $53,00.
BTC Price Analysis: Conclusion
BTC price analysis is bearish for the upcoming days as the market could not breach the $47,000 resistance and has since slowed down its advance. Therefore, BTC/USD needs another retracement over the next days before another rally can be attempted.
While waiting for Litecoin to move further, read our articles on BTC Futures, Physical BTC, as well as Proof of Stake vs Proof of Work.
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