Bitcoin’s performance since the second week of November has been poor, and the cryptocurrency could record further losses soon.
The leading cryptocurrency has been underperforming in recent weeks. Since reaching an all-time high of $69,044 last month, Bitcoin has lost more than 30% of its value. At press time, Bitcoin is struggling below the $50k level, and the dip could extend further.
There is no major catalyst behind Bitcoin’s current poor performance. The cryptocurrency market is going through a major correction after experiencing a massive rally since the start of the year. The price dip comes despite numerous predictions from experts that Bitcoin’s price will rally before the end of the year.
Several crypto experts and analysts predicted that Bitcoin would likely reach the $100k mark before the end of 2021. However, two weeks into a new year and Bitcoin’s price is down by more than 50% from the predicted target and could likely dip further.
Key levels to watch
The BTC/USD 4-hour chart is currently bearish as Bitcoin continues its poor performance heading into the end of 2021. At press time, Bitcoin is trading at $46,995, down by more than 1% over the past 24 hours.
The MACD line is below the neutral zone, indicating a bearish trend in the market. Furthermore, the 14-day RSI of 35 shows that Bitcoin is currently oversold and continues to face selling pressure from investors.
If the current market condition persists, then Bitcoin will likely lose the major support level at $45k for the first time since September. An extended bearish performance would mean BTC would struggle to defend the $40k support level over the coming hours and days.
However, if the bulls regain control, BTC could recover some of its losses and rally towards the first major resistance level at $50,231. Unless there is an extended rally, the resistance level at $52,046 should cap any short-term upward price movement.