The cryptocurrency market isn’t having a great month, and the prices of the assets continue to decline.
The cryptocurrency market has been underperforming since reaching an all-time high a month ago. The total cryptocurrency market cap reached $3 trillion a month ago when Bitcoin and Ether reached new all-time highs.
However, Bitcoin and the broader market have been underperforming since then. Bitcoin’s price has dropped by more than 30% from the all-time high of $69,044 and is currently struggling below the $50k level.
The losses were due to various catalysts in recent weeks. The emergence of the Omicron Coronavirus variant affected the global financial markets, Bitcoin included. The Evergrande is the latest to hit the financial markets, and Bitcoin has also been affected.
At press time, Bitcoin is struggling just above the $47k, down by more than 10% over the past week. The losses have been massive, and several other cryptocurrencies have also recorded similar losses.
However, market experts and analysts believe Bitcoin’s price will stay above the $40k level in the short term. However, the cryptocurrency could be forced to defend the $45k resistance level if the current market condition persists.
Key levels to watch
The BTC/USD 4-hour chart is bearish, similar to other cryptocurrencies in the market. The MACD line is in the bearish zone, while the RSI of 44 shows that Bitcoin will soon enter the oversold region.
If the current market condition is maintained, then Bitcoin could be forced to defend the first major support level at $46,245 over the coming hours. In the event of extended bearish performance, Bitcoin could drop below the $45k psychological level for the first time since October. The second major resistance level is at $43,266.
On the flip side, Bitcoin could turn things around and rally towards the $51k resistance level during the weekend. If the rally can be sustained, Bitcoin could top the $54k mark over the next few days.