The cryptocurrency market has underperformed over the past 24 hours following its recent rally.
The broader cryptocurrency market has been performing well in recent weeks. Thanks to the recent rally, the total cryptocurrency market cap topped the $2 trillion mark, with Bitcoin and Ether performing well.
Bitcoin reached the $47k level earlier this week but struggled to surpass the $50k psychological mark. It has lost nearly 3% of its value in the last 24 hours and risks dropping below $45k for the first time this month.
At press time, BTC is trading at $45,373, down by 2.6% in the last 24 hours. The poor performance comes despite MicroStrategy announcing that it had purchased $190 million worth of bitcoins.
MicroStrategy remains the leading corporate Bitcoin holder, spending more than $3 billion to acquire bitcoins so far. In the past, news of MicroStrategy acquiring more bitcoins has served as a short-term catalyst for positive price movement as it shows the company is bullish about the leading cryptocurrency.
However, Bitcoin’s price slipped more than 2% despite the recent news.
Key levels to watch
The BTC/USD 4-hour chart is bearish as Bitcoin has been underperforming over the past 24 hours. The technical indicators show that further downward movement could be on the card.
The MACD line has dropped below the neutral zone thanks to the ongoing bearish movement. The 14-day relative strength index of 39 shows that Bitcoin could soon enter the oversold region if the negative momentum is maintained.
Bitcoin could drop below the $45k level for the first time if the bears remain in control. In the event of an extended bearish performance, BTC could trade around the second major support level at $43,785 before the end of the day.
However, if the bulls regain control, Bitcoin could retest the $47k resistance level over the next few hours.