The cryptocurrency market had a poor weekend, and Bitcoin could soon fall further.
The broader cryptocurrency market has been in a bearish trend throughout the weekend. The total cryptocurrency market capitalization has fallen by more than 4% in the past 24 hours and is now over $1.7 trillion.
The broader cryptocurrency market has lost more than $200 billion in the past seven days. Bitcoin remains the number one cryptocurrency by market cap, but has recorded losses over the past few days.
At press time, Bitcoin is trading above $38,000 per coin, down more than 2% in the past 24 hours. If market momentum is maintained, Bitcoin could face further selling pressure and could slide towards the psychological $35,000 level by the end of the week.
Key Levels to Watch
The 4-hour chart of BTC/USD is currently bearish as bearish sentiment intensifies. Technical indicators suggest that BTC could suffer further losses in the hours and days ahead.
The MACD line is below the neutral zone, indicating strong bearish momentum for Bitcoin. The 14-day relative strength index of 48 suggests that Bitcoin could soon enter oversold territory if current market conditions persist.
If bears remain in control, Bitcoin could break below the first major support level at $37,102 before the day’s close. This would be the first time Bitcoin has fallen below $38 since the beginning of the month.
In the event of a long-term bearish run, Bitcoin could be forced to defend the second major resistance level at $35,289. Bitcoin has not tested the psychological level of $35,000 since February.
However, if the bulls regain control, Bitcoin could test the $40,000 resistance in the next few hours. The second major resistance at $42,154 should limit further gains in the near term.
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