Bitcoin price analysis: BTC retests $20,250 support, another push lower incoming?
Bitcoin price analysis is bearish today as we have seen a strong decline back to the $20,250 support end with a small reaction higher. Therefore, BTC/USD is likely ready to break lower and push way above current lows. Considering that bearish momentum has slowed down, it is unlikely that we will see the next push lower go further than the $18,000 mark.
Cryptocurrency heat map. Source: Coin360
The market has traded with mixed but calm results. The leaders, Bitcoin and Ethereum, declined by 1.25 percent, while Ethereum by 1.56 percent. Meanwhile, the rest of the top altcoins saw small gains, with coins like Tezos (XTZ) and Monero (XMR) being the top performers.
Bitcoin price movement in the last 24 hours: Bitcoin slowly bounces from previous low, prepares to push lower again
BTC/USD traded in a range of $20,265.23 to $21,365.30, indicating low volatility over the last 24 hours. Trading volume has declined by 28.03 percent, totaling $32.17 billion, while the total market cap trades around $390.47 billion, resulting in market dominance of 43.91 percent.
BTC/USD 4-hour chart: BTC ready to break $20,250?
On the 4-hour chart, we can see a slight reaction higher and a return to the previous low over the past hours. Therefore, BTC/USD should see further decline over the weekend, likely leading to a lot more downside by the start of next week. However, if the support holds, we could see further attempts to reverse over the weekend.
BTC/USD 4-hour chart. Source: TradingView
Bitcoin price action has continued to see a decline over the past week. From the last major swing high at $31,500, BTC/USD has declined by over 35 percent, meaning that bears should be exhausted.
Earlier in the week, the first reaction higher was seen around $21,000. From there, BTC reacted to $23,000 resistance before moving even lower on Wednesday. This time support was seen only slightly lower – at $20,250, indicating that bears are running out of momentum.
However, the following retracement could not move past the previous local high as resistance was found again at $23,000. Reversal followed late yesterday, slowly leading Bitcoin price back to the $20,250 previous low.
Since then, BTC/USD has consolidated above the support and managed to post only a slight move higher. Therefore, we can see that bears still remain in control, and more downside could soon be seen. Likely we will see a break lower by the end of the day, opening the way for a lot more downside to come over the next days.
Alternatively, if the $20,250 support holds, a reversal could finally be formed. This, however, still would need to be confirmed by a break of the $23,000 resistance. Once that is done, we could expect a strong retracement over the rest of June.
Until then, we remain bearish and expect the next support levels at $19,000 and $18,000 to be tested soon.
Bitcoin price analysis: Conclusion
Bitcoin price analysis is bearish today as we have seen only a slight recovery after a retest of $20,250 support. Likely BTC/USD will soon push below the support and look to reach even further downside as the recovery has failed over the past 24 hours. Therefore, when considering the previous momentum, we expect the next support to be found around $18,000. Once that is done, a small reaction higher could follow to retest the $20,250 previous support as resistance.
While waiting for Bitcoin to move further, see our Price Prediction on UNUS SED LEO, BITO, and Klaytn.
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