Bitcoin price analysis: BTC retests $31,000, another drop incoming?

Bitcoin price analysis is bearish today as we expect another lower high to be set before more downside is tested early next week. Likely BTC/USD will return below $29,500 overnight, opening the way for another push lower.

The market has traded in the green over the last 24 hours. Bitcoin gained 3.92, while Ethereum 4.34 percent. Meanwhile, the rest of the top altcoins recovered even further.

BTC/USD traded in a range of $29,274.78 to $30,446.32, indicating substantial volatility over the last 24 hours. 

Trading volume has declined by 11.95 percent, totaling $26 billion, while the total market cap trades around $570.9 billion, resulting in a dominance of 44.39 percent.

On the 4-hour chart, we can see sideways action above the $29,500 mark, indicating that another drop will soon follow.

Bitcoin price action has traded with strong bearish momentum throughout the week. After some consolidation below $32,000 resistance at the beginning of the week, another drop quickly took BTC/USD towards a new low at $25,500, meaning another loss of around 20 percent.

Recovery followed on Friday, leading to a lower high set at $31,000, However, another clear drop did not follow as bears were still exhausted. 

Therefore, a higher local low was set just below $29,000 before slight bullish momentum resumed overnight.

Since then, the $30,000 mark has served as a consolidation area, indicating that another lower high has been set.

Unless bullish momentum reappears, we expect another lower high to be set, leading Bitcoin price towards further downside early next week.

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