Can Bitcoin defend the $40k support level after the recent bearish performance?
The leading cryptocurrency lost its major support level above $45k last week but now struggles to stay above the $40k mark.
The cryptocurrency market has lost nearly $300 billion over the past week. The total cryptocurrency market cap last week was around $2.3 trillion, but it now stands below the $2 trillion level.
The dip in market cap comes as Bitcoin and other major cryptocurrencies recorded huge losses. Bitcoin’s total market cap dropped from the all-time high of $1.1 trillion two months ago to currently stand above $780 billion.
On November 10, Bitcoin reached an all-time high price of $69,044. However, the leading cryptocurrency has lost more than 40% of its value since then and is now trading just above $41,000 per coin.
Bitcoin lost its major support level above the $45k level last week. Over the weekend, it managed to stay above the $40k mark as the bearish trend continues. However, with the recent poor performances, Bitcoin could find it hard to stay above $40k over the coming days.
If the bears continue to remain in control, BTC could lose the $40k support level before the end of the week.
Key levels to watch
The BTC/USD 4-hour chart is very bearish, thanks to Bitcoin’s latest poor performance. BTC has lost more than 1% of its value in the past 24 hours and faces further selling pressure in the market.
The MACD line currently stays in the negative zone, indicating a negative trend in the coin’s performance. The 14-day relative strength index of 49 shows that BTC is currently heading to the oversold region if the bearish performance continues.
If the bears remain in control, BTC will drop below the $40k psychological level in the coming hours. In the event of extended bearish performance, BTC could trade below $40k for the first time in nearly six months.