Bitcoin Price Analysis: BTC moves to $45,000, rejects further upside?

TL;DR Breakdown

• BTC continued to rally yesterday.
• Resistance found around $45,000.
• BTC/USD is set for a reversal later today.

Bitcoin price analysis indicates bearish momentum to follow over the next 24 hours as further upside beyond the $45,000 resistance could not be reached. Therefore, we expect BTC/USD to reverse over the next 24 hours and retrace some of the gain early next week.

The cryptocurrency market trades with a slight loss over the last 24 hours. Bitcoin is up by 1.76, while Ethereum has lost 1.24 percent. Dogecoin (DOGE) is among the best performers with a gain of almost 6 percent.

Bitcoin price movement in the last 24 hours: Bitcoin rallies to $45,000

BTC/USD traded in a range of $42,618.57 – $45,282.35, indicating strong volatility over the last 24 hours. Trading volume has decreased by 13.25 percent and totals $36.7 billion, while the total market capitalization stands around $827.45 billion, ranking the cryptocurrency in 46th place overall.

BTC/USD 4-hour chart: prepares to retrace?

On the 4-hour chart, we can see the Bitcoin price action losing its momentum earlier today, indicating an upcoming retracement early next week.

Bitcoin price action continued to rally over the weekend after some slowdown was seen earlier this week. At the end of July, a strong retracement was seen back to the $38,000 mark, which set a lower low, indicating a reversal.

However, after failing to move lower, BTC/USD gathered momentum and pushed above the $41,000-$42,000 resistance area on Friday. What followed was a rally to the $45,000 mark, where the market has slowed down its advance once again.

Therefore, we can assume that the Bitcoin price action momentum is exhausted and a retracement is needed before further highs can be expected. The potential area where to look for support is located around the same $41,000-$42,000 resistance area. From there, BTC/USD should rally once again and target the next major resistance around the $47,000 mark.

Bitcoin Price Analysis: Conclusion 

Bitcoin price analysis is bearish for the upcoming days as resistance was found around the $45,000 mark earlier today and market momentum slowed down. Therefore, we expect BTC/USD to retrace early next week and look to retest the previous resistance area of $41,000-$42,000 as support. 

While waiting for Litecoin to move further, read our articles on Bitcoin Futures, Physical Bitcoin, as well as Proof of Stake vs Proof of Work.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com 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.

Source: https://www.cryptopolitan.com/bitcoin-price-analysis-2021-08-08/