The cryptocurrency market has performed excellently over the past 24 hours, erasing some of the losses recorded over the weekend.
The cryptocurrency market has been doing well since the start of the week. The market has added nearly 6% to its value in the past 24 hours, with total market capitalization now over the $900 billion mark.
The performance comes after a poor end to last week, where the total market cap dropped to around $800 billion.
Bitcoin, the world’s largest cryptocurrency by market capitalization, is currently outperforming the broader market. Bitcoin has added nearly 6% to its value in the past 24 hours and is now trading above $20,000 per coin.
Breaking the $20k psychological level is an important step for BTC as the cryptocurrency has been struggling in recent days. Last week, Bitcoin dropped below $18k for the second time in a month.
However, BTC has recovered nicely and could aim for the $21,000 resistance level if the rally holds.
Key levels to watch
The BTC/USD 4-hour chart is positive as Bitcoin has been performing well since the start of the week. The technical indicators show that BTC could rally higher if the bulls remain in control.
The MACD line is around the neutral zone and could move into the positive region if the rally continues. The 14-day Relative Strength Index of 63 shows that Bitcoin may soon enter the overbought region if market conditions improve.
At press time, BTC trades above $20,200. If the rally continues, BTC could surge past the $21k resistance level before the end of the day. However, it would need the support of the broader market to move above the $22,199 resistance level in the near term.
We are still in a bear market and Bitcoin could lose its $20,000 support if it does not break above the $21,000 resistance level soon. Unless there is an extended bearish run, BTC is likely to stay above the $18,564 support level in the near term.