Bitcoin Price Analisation: BTC rejects to withstand $47,000, set for a drop?

Bitcoin did not breach the 47k resistance
Bitcoin did not breach the 47k resistance

Bitcoin price analysis indicates bearish price action to follow over the following 24 hours as further upside couldn’t be reached after another test of the $47,000 resistance. We expect BTC/USD to drop later today and move back to the $42,00 support line.

Cryptocurrency heat map. Source: Coin360

The cryptocurrency market trades with a small increase over the last 24 hours. Bitcoin and Ethereum are up by 1.68% and 2.54%, respectively. Meanwhile, Cardano (ADA) is up by 16 percent and is among the most effective performers overall.

Bitcoin price movement within the last 24 hours: Bitcoin tests $47,000 resistance

BTC/USD trade ranged from $44,705.56 to $46,520.67, showing volatility over the last 24 hours. Trading volume has dropped by 9% and totals $33.4 billion, while the overall market capitalization trades around $866.5 billion, leading to market dominance of 45.3%.

BTC/USD 4-hour chart: BTC prepares to reverse??

On the 4-hour chart, we will see the Bitcoin price action failing to interrupt the $47,000 resistance, which should lead towards a retracement later in the week.

BTC/USD 4-hour chart. Source: TradingView

Bitcoin price action has continued to rally over the past week after a rather higher high was set above the $41,000 mark at the tip of July. From there, BTC/USD retraced and established a transparent higher low from which to push higher over the subsequent days.

What followed was a rally of over 20% to the $47,000 support line. BTC/USD bogged down from there and will not reach further highs today, indicating market exhaustion after a robust rally.

This Bitcoin price action development should lead towards another retracement later in the week, with the $41,000-$42,000 previous resistance likely acting as support this point. From there, BTC/USD should rally further later this month and check out to achieve the subsequent major resistance area around $53,00.

Bitcoin Price Analysis: Conclusion 

Bitcoin price analysis is bearish for the upcoming days because the market couldn’t breach the $47,000 resistance and has since stalled its advance. Therefore, BTC/USD needs another retracement over the following days before another rally are often attempted.

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