The cryptocurrency market experienced massive losses last week, but the prices are starting to recover.
The global financial markets suffered some losses last week following the discovery of the Omicron Coronavirus variant in South Africa. Investors were concerned about the possible effects of another global lockdown, and this led to the crypto market losing billions of dollars.
Bitcoin’s price slipped below the $55k level for the first time since October. Over the weekend, Bitcoin was trading just above the $54k mark. However, the market has started to recover, and the leading cryptocurrency is currently trading above $57,000 per coin.
At press time, Bitcoin’s price is up by more than 5% over the past 24 hours and is trading at $57,113 per coin.
Key levels to watch
The BTC/USD 4-hour chart is currently bullish after the cryptocurrency has performed excellently over the past few hours. Bitcoin is up by more than 5% over the past few hours and could be set to rally higher before the end of the day.
The MACD line is moving away from the negative territory and will soon be neutral. Thus, indicating that Bitcoin is suddenly becoming bullish. Furthermore, the RSI stands a 58 and Bitcoin could soon reach the oversold level.
Bitcoin is still trading below its 100-day moving average of $58,860, but it could soon rally past that level over the coming hours.
What to expect
Bitcoin could rally higher after its latest performance. If BTC maintains its current momentum, then it could surpass the first major resistance level at $58,759 over the next few hours. In the event of an extended bullish performance, Bitcoin could top the $60k level over the next few hours and head towards the second major resistance at $60,970.
However, the bears haven’t completely relinquished control of the market, and the price could still drop. If the negative trend returns, BTC could be forced to defend the $54,206 support level over the next few hours. Unless there is a massive sell-off, BTC should steer clear of the support level at $53,378 before the end of the day.