Bitcoin has defended the $40k support level and could be set to surge higher over the coming hours.
The cryptocurrency market has underperformed over the past few days, with the total market cap down by nearly $300 billion during that period.
The bearish trend saw Bitcoin lose its position around the $45k region and currently trades around $42k per coin. The leading cryptocurrency was able to defend the major support level around $40k over the past few days.
This could allow it to surge higher over the coming hours and days. At press time, BTC is trading at $42,189, up by less than 1% over the past 24 hours.
There is no major catalyst behind the current market movement. The total cryptocurrency market cap is around the $1.7 trillion mark and could rally higher over the coming hours and days.
If Bitcoin’s value stays above $42,000, the leading cryptocurrency could make a run towards the $45k resistance level before the end of the week.
Key levels to watch
The BTC/USD 4-hour chart is looking neutral at the moment, with Bitcoin up by less than 1% over the past 24 hours. The technical indicators show that Bitcoin is recovering from its recent slump.
The MACD line is around the neutral zone, thanks to Bitcoin’s latest performance that saw it come out of the negative territory. The 14-day relative strength index of 46 shows that Bitcoin is no longer in the oversold region.
If the slow recovery continues, Bitcoin could enter the overbought region over the coming days or weeks.
In the event that the rally intensifies, BTC could cross the first major resistance level at $44,012 over the next few hours. An extended bullish run would allow the leading cryptocurrency to trade above $45k for the second time this month.
However, if the bears regain full control, Bitcoin could struggle to defend the major support level at $40k.