Bitcoin has broken below the $22k support level after losing over 6% of its value and could register further losses soon.
The cryptocurrency market has been underperforming since the beginning of the week. The broader market has lost more than 6% of its value in the past 24 hours, bringing the overall market cap down from the $1.1 trillion mark earlier today.
Bitcoin continues to lead the market, with the broader market recording huge losses over the past 24 hours as a result of its massive decline.
Bitcoin has lost over 6% of its value to date, resulting in BTC trading below the $22k level for the first time this week. BTC has maintained its value above $20k in recent weeks, and bulls will expect it to hold above that level over the weekend.
However, the bulls will need to defend the BTC price and ensure that it does not drop below the $21k resistance in the near term.
prime level to watch
The BTC/USD 4-hours chart has turned bearish as Bitcoin has been underperforming since the start of the week. Technical indicators suggest that BTC may soon post further losses.
The MACD line moved below the neutral zone earlier this week and has remained there since. Thus, it shows that the bears are currently in control of the market.
The 14-day Relative Strength Index of 19 strongly indicates that Bitcoin is in oversold territory.
As of press time, BTC is trading at $21,814 per coin. If the bearish trend continues, BTC may decline below the $21k support level in the next few hours or days. However, the bulls should defend BTC above $20k in the near term.
The bulls are likely to gain control of the market and push BTC above the $22,500 resistance level before the end of the day.
Unless there is an extended bullish trend, BTC may find it difficult to rise above the $23,409 resistance level in the coming hours.