Bitcoin price analysis: BTC swiftly drops to $42,000, retracement next?

TL;DR Breakdown

• Bitcoin price analysis is bullish today.
• BTC/USD broke past $43,000 support yesterday.
• Support was found at $42,000.

Bitcoin price analysis is bullish today as we expect a bounce from the $42,000 support. Likely BTC/USD will retest $43,000 as resistance before more downside is seen.

The market has traded in the red over the last 24 hours. The leader, Bitcoin, lost 2.71 percent, while Ethereum lost 1.67 percent. Avalanche and Terra are among the worst performers, with a loss of 9.5 and 5.5 percent, respectively.

Bitcoin price movement in the last 24 hours: Bitcoin continued to test further downside

BTC/USD traded in a range of $42,183.25 – $43,490.80, indicating strong volatility over the last 24 hours. Trading volume has declined by 11.2 percent, totaling $20.7 billion, while the total market cap trades around $806.57 billion, resulting in a dominance of 41.06 percent.

BTC/USD 4-hour chart: BTC looks to retest $43,000 as resistance?

On the 4-hour chart, we can see the Bitcoin price action finding strong support at $42,000, likely meaning taht previous support at $43,000 will be retested as resistance next. 

The market has seen more downside tested over this week. After several rejections from the $46,800 resistance, the Bitcoin price started to rapidly decline on the 5th of April.

Further downside followed until $43,000, where a reaction higher was seen on the 7th of April. Over the following day, BTC/USD consolidated before quickly spiking lower during the second half of yesterday.

This time, support was found much sooner – at $42,000. Since then, the Bitcoin price action has consolidated, indicating that a slight recovery should be seen soon.

Bitcoin price analysis: Conclusion 

Bitcoin price analysis is bullish today as we have seen a drop to $42,000 and consolidation in a tight range since. Therefore, we expect BTC/USD to retrace some of the loss over the remainder of the weekend.

While waiting for Bitcoin to move further, see our articles on Web3 Startups, How to buy Terra, and How to stake Algorand.

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• Source: https://www.cryptopolitan.com/bitcoin-price-analysis-2022-04-09/