The cryptocurrency market has struggled over the weekend as bearish sentiment persists.
The cryptocurrency market has lost less than 1% of its total value in the past 24 hours. After losing nearly $300 billion last week, the entire crypto market is now over $1.2 trillion.
Bitcoin remains the world’s largest cryptocurrency by market capitalization and has struggled in recent months. At press time, Bitcoin was trading at $29,683, down 11% over the past seven days.
The leading cryptocurrency has struggled to regain its value above $30,000 since falling below this key threshold for the first time this year a few days ago. The Terra crisis has affected the broader cryptocurrency market, many of which have yet to start a solid recovery.
If the bearish sentiment persists, Bitcoin could continue to drop below the psychological level of $30,000 in the coming days.
Key Levels to Watch
The BTC/USD 4-hour chart is currently bearish due to Bitcoin’s poor performance in recent days. Technical indicators suggest that bearish sentiment is likely to intensify in the coming hours.
The MACD line has been below the neutral zone since May 5. The MACD reading is currently at -75, indicating a bearish trend for Bitcoin.
The 14-day relative strength index at 49 suggests that Bitcoin could fall into oversold territory if recent market momentum is maintained.
Bitcoin could break below the first major support level at $28,447 before the day’s close. However, the leading cryptocurrency should sustain its value above the $27,500 support in the near term.
If the bulls regain control of the market, BTC could rally past the first major resistance level at $31,352 in the coming hours or days. Barring a long-term bullish performance, the second major resistance at $35,152 should limit further gains in the coming days.