The leading cryptocurrency has been underperforming over the past 24 hours and could be set for further losses.
Bitcoin has been underperforming over the past 24 hours. The leading cryptocurrency has lost more than 5% of its value so far today.
Thanks to this latest dip, BTC has dropped below the $40k region for the first time in more than two weeks.
Market analysts believe the continuing conflict over Ukraine is affecting the broader financial markets, Bitcoin included. Furthermore, the likelihood of aggressive Federal Reserve actions this year continues to affect sentiments in the market.
Alex Kuptsikevich, senior financial analyst at FxPro said;
"Bitcoin has clearly lost its function as a defensive asset lately, showing almost no correlation with gold, which was in high demand on Wednesday and Thursday."
The broader cryptocurrency has been performing poorly over the past 24 hours. At press time, the total market cap stands around $1.8 trillion, down by over $100 billion in the last 24 hours.
Key levels to watch
The BTC/USD 4-hour chart is very bearish at the moment, with Bitcoin losing more than 5% of its value in the last few hours. At press time, BTC is trading just below the $40k mark.
The MACD line has dropped below the neutral zone following Bitcoin’s ongoing poor performance. The 14-day relative strength index of 35 shows that Bitcoin is currently oversold.
If the bears remain in control, BTC could lose the first major support level at $38,395 over the next few hours. Unless there is an extended bearish run, BTC should stay above the $36,000 support level in the short term.
However, if the bulls regain control of the market, BTC could rally past the $42,780 resistance level before the end of the day.
