Bitcoin Price Analysis: BTC tests $41,000 previous swing high, bears to prevent further upside?

TL;DR Breakdown

• BTC retraced to the $36,500 support.
• Next resistance at $41,000 tested.
• Market likely to pivot lower again.

Bitcoin price analysis indicates bearish momentum to follow over the next 24 hours as the previous major swing high of around $41,000 gets tested for the second time over the past days. Therefore, unless a clean breakout is seen over the next hours, we expect BTC/USD to retrace lower and start reversing to the downside again.

Cryptocurrency market trades in the green over the last 24 hours. Bitcoin has rallied by around 5.5 percent, while Ethereum by 0.16 percent. Ripple (XRP) has increased by 11 percent and is among the best performers.

Bitcoin price movement in the last 24 hours: Bitcoin tests $41,000 resistance again

BTC/USD traded in a range of $37,439.40 – $40,816.07, indicating a moderate amount of volatility over the last 24 hours. Trading volume has slightly decreased by 3.87 percent and totals $38.9 billion. Meanwhile, the total market capitalization stands around $761.8 billion, resulting in market dominance of 48.4 percent.

BTC/USD 4-hour chart: BTC prepares for a reversal?

On the 4-hour chart, we can see Bitcoin price action testing the $41,000 resistance for the second time this week with signs of exhaustion for further upside.

Bitcoin price action has traded with an extremely strong momentum over the past few days. After previous major support level of around $29,500 was tested on the 20th of July, BTC/USD rallied to $41,000 previous major swing high and rejected further upside on Monday.

From there, BTC retraced to retest the $36,500 previous resistance as a support and built up momentum for another push higher. Yesterday, BTC/USD started to rally again and reached the $41,000 resistance earlier today once again. 

Currently, the $41,000 mark still gets tested with a slightly local high set again. However, we can expect a lot of selling pressure to come in for any further attempt. Therefore, BTC/USD is likely to decline later today and potentially start retracing most of the 35 percent upswing seen over the last days later this week.

Bitcoin Price Analysis: Conclusion 

Bitcoin price analysis is bearish for the next 24 hours as previous resistance around $41,000 currently gets retested for the second time. Therefore, we expect BTC/USD to respect the resistance and move lower later today to test previous support levels.

While waiting for Bitcoin to decline, read our guides on Bitcoin fees, DeFi advantages, as well as what can you do with Bitcoin.

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-2021-07-28/