Bitcoin Price Analysis: BTC sets slightly lower low at $38,000, ready to push higher?

TL;DR Breakdown

• BTC continued to retrace overnight.
• Support found around $38,000.
• Bitcoin is likely to retest the $41,000 resistance.

Bitcoin price analysis is bullish for today as the market retraced to $38,000 support overnight and currently rejects further downside. Therefore, we expect BTC/USD to reverse later today and try to retest previous highs around $41,000-$42,000 next.

The cryptocurrency market declined over the last 24 hours. The market leader, Bitcoin lost 2.41 percent, while Ethereum lost 3.4 percent. Solana (SOL) is among the best performers, with a gain of around 6 percent. 

Bitcoin price movement in the last 24 hours: Bitcoin retraced to $38,000

BTC/USD traded in a range of $37,826.63 – $39,972.00, indicating mild volatility over the last 24 hours. Trading volume has decreased by 11 percent and totals $25.6 billion. Meanwhile, the total market capitalization trades around $722.85 billion, resulting in market dominance of 46.2 percent.

BTC/USD 4-hour chart: BTC prepares for another push higher

On the 4-hour chart, we can see Bitcoin price rejecting further downside around the $38,000 support in preparation for a reversal later today.

Bitcoin price action traded with a strong bullish momentum over the past weeks after a new swing low was set around the $29,500 mark. From there, BTC/USD gained more than 44 percent to the $42,500 mark.

After failure to move any higher on the 1st of August, BTC started to retrace until a slightly lower low was set around the $38,000 support. What followed was a rejection for further downside over the past hours, indicating that BTC/USD is ready to reverse over the next 24 hours.

The first target to reach is located around the $41,000 support/resistance level. If Bitcoin fails to move beyond this resistance, we could see a lower high set, which could result in a much stronger reversal over the next weeks.

Alternatively, if Bitcoin breaks above the $42,000 resistance, we expect a lot more upside to be seen over the following weeks as Bitcoin looks to reach the next significant resistance level around the $47,000 mark.

Bitcoin Price Analysis: Conclusion 

Bitcoin price analysis is bullish for the upcoming days as the market has retraced to the $38,000 mark and set a slightly lower low. Since further downside gets rejected as of now, we expect BTC/USD to reverse and test the previous swing high over the next days.

While waiting for Bitcoin to decline, read our articles on Satoshi Nakamoto, DeFi advantages, as well as Bitcoin fees.

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-2021-08-03/