Bitcoin Price Analysis: BTC reaches $31,000, further downside to follow?

TL;DR Breakdown

• BTC continues moving lower after retesting $33,000.
• Next support at $31,000 reached overnight.
• Bitcoin attempts to break lower again.

Bitcoin price analysis indicates bearish price action to follow later today as bears try to breach the $31,000 support again. Therefore, we will likely see further lows today, with bears targeting the $29,000 support next.

The overall market trades in the red over the last 24 hours. Bitcoin has lost 2.3 percent, while Ethereum 3 percent. Dogecoin (DOGE) is among the worst performers, with a loss of 7.4 percent.

Bitcoin price movement in the last 24 hours: Bitcoin prepares for further lows

BTC/USD traded in a range of $31,100.67 – $32,058.44, indicating a moderate amount of volatility. Trading volume has increased by 19.26 percent and totals $23.5 billion. Meanwhile, the total market capitalization trades around $583.4 billion, resulting in market dominance of 45.94 percent.

BTC/USD 4-hour chart: BTC tests $31,000 support again

On the 4-hour chart, we can see the Bitcoin looking to break through the $31,000 after some rejection overnight.

The overall market trades with a strong bearish momentum over the last weeks. After BTC/USD peaked at around $36,500, several lower highs were set, and a clear descending trendline was formed.

Additionally, from the past three lows in June and July, an ascending trendline of support was confirmed on the 8th of July. Therefore, Bitcoin price established a symmetrical triangle pattern, from which the market broke out on the 13th of July to the downside.

This price action development indicated that bears have taken over control again, and we can expect further downside over the following days. Bitcoin price did, indeed, move lower over the past days and reached the $31,000 support overnight.

After some initial rejection for further downside, BTC/USD made a slight move to the upside earlier today to the $32,000 mark. From there, Bitcoin pushed lower again and currently tries to breach $31,000 support again. Likely this will lead Bitcoin towards further downside later today, with the next major support target around $29,000.

Bitcoin Price Analysis: Conclusion 

Bitcoin price analysis is bearish for today as the market declines after a retest of the $33,000 mark earlier this week. Therefore, we expect BTC/USD to break lower later today and reach the $29,000 next major support over the weekend.  

While waiting for Bitcoin to break $31,000, read our long-term price predictions on BitTorrent, Uniswap, as well as Siacoin.

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-2021-07-16/