The cryptocurrency market underperformed over the weekend and Bitcoin may soon register further losses.
The broader cryptocurrency market has been in a bearish pattern over the weekend. Within the final 24 hours, the full cryptocurrency market cap has dipped by greater than 4% and presently stands above $1.7 trillion.
Over the past seven days, the broader crypto market has lost over $200 billion. Bitcoin remains the number one cryptocurrency by market capitalization but has recorded losses over the past few days.
At press time, Bitcoin is buying and selling above $38k per coin, down by greater than 2% over the past 24 hours. If the market momentum is maintained, Bitcoin might face additional promoting stress and will slip in the direction of the $35k psychological stage earlier than the top of the week.
Key levels to monitor
The BTC/USD 4-hour chart is bearish right now as the bearish sentiment in the market thickens. Technical indicators show that BTC may suffer further losses over the next few hours and days.
The MACD line is under the impartial zone, indicating robust bearish momentum for Bitcoin. The 14-day relative energy index of 48 exhibits that Bitcoin might quickly enter the oversold area if the present market situation persists.
If the bears stay in check, Bitcoin could slip below the first major support level at $37,102 before the end of the day. This would be the first time Bitcoin has traded below $38 since the start of the month.
Within the occasion of an prolonged bearish run, Bitcoin may very well be compelled to defend the second main resistance stage at $35,289. Bitcoin hasn’t examined the $35k psychological stage since February.
However, if the bulls regain control, Bitcoin could test the $40,000 resistance level over the next few hours. The second major resistance level at $42,154 should limit any further upward movement in the near term.
