Bitcoin price analysis: BTC in the red, looks to retrace to $40,000?

TL;DR Breakdown

• Bitcoin price analysis is bearish today.
• BTC/USD peaked at $45,000 yesterday.
• Selling pressure returned over the last hours.

Bitcoin price analysis is bearish today as we have seen a steady reversal after a spike to $45,000. Likely BTC/USD will look to drop to previous major resistance of around $40,000 to retest it as support.

The overall market has traded in the red over the last 24 hours. The leaders, Bitcoin and Ethereum, lost 4.06 and 4.86 percent, respectively. 

Bitcoin price movement in the last 24 hours: Bitcoin pivots around $45,000, begins to retrace

BTC/USD traded in a range of $42,413.46 – $44,362.55, indicating substantial volatility over the last 24 hours. Trading volume has declined by 22.94 percent to $22.95 billion, while the total market cap trades around $804.73 billion, resulting in a dominance of 43 percent.

BTC/USD 4-hour chart: BTC looks to break below $42,000

On the 4-hour chart, we can see the Bitcoin price starting to rapidly decline over the past hours as bulls are finally exhausted after a strong higher high was set yesterday.

Bitcoin price action has seen a strong advance over the past days. After a strong higher low was set at $37,000 on the 28th of February, BTC/USD started to rapidly advance higher.

Almost 20 percent gain quickly followed to $44,000, with further spikes higher seen later. The last test of upside set further higher high at $45,600 before quickly being rejected lower.

Therefore, the Bitcoin price action has posted clear signs of exhaustion. BTC/USD should see strong retracement over the next days, likely resulting in another higher low set, with the target for support being the $39,500 previous resistance.

Bitcoin price analysis: Conclusion 

Bitcoin price analysis is bearish today as we have seen rejection for further upside yesterday result in a steady decline today. Over the past hours, selling pressure has increased, likely leading BTC/USD much lower over the next 24 hours.

While waiting for Ethereum to move further, see our articles on how to buy land in Metaverse, How to close a Coinbase account, and how to transfer crypto from Coinbase to Robinhood.

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• Source: https://www.cryptopolitan.com/bitcoin-price-analysis-2022-03-03/