The broader cryptocurrency market has been underperforming over the past few days.
The cryptocurrency market has been underperforming since the beginning of the week. In the past 24 hours, the overall cryptocurrency market has lost more than 4% of its value, resulting in the total market cap falling below $1.9 trillion.
Bitcoin remains the leading cryptocurrency by market cap, but is currently suffering due to bearish sentiment at play. In the last 24 hours, bitcoin has lost more than 5% of its value.
At press time, bitcoin was trading at $40,171 after falling below the $40k support level a few hours ago. In the past seven days, bitcoin has lost more than 13% of its value, effectively eroding the gains it accumulated at the end of last month.
Bitcoin was previously trading around $45k, and the bullish momentum meant it could challenge the $50k psychological level. However, with the current market trend, Bitcoin may struggle to defend its position above $35k in the coming days or weeks.
prime level to watch
BTC/USD 4-hours chart is currently in a bearish position as bitcoin is underperforming. Technical indicators also show that it is one of the worst performers among the top 10 cryptocurrencies by market capitalization.
The MACD line has broken below the neutral zone, which indicates strong bearish momentum for Bitcoin at the moment.
The 14-day Relative Strength Index of 31 shows that Bitcoin is currently in oversold territory.
If the bearish momentum continues, bitcoin could drop below the first major support at $38,886 before the end of the day. However, it should defend its position above the second major support level of $37,528 in the near term.
However, if the bullish momentum returns, bitcoin could trade above the $42k resistance level in the coming hours. It will need broad market support for it to reach the $44k level again in the coming hours or days.