Bitcoin's performance since the second week of November has been poor, and cryptocurrency could post further losses soon.
The leading cryptocurrency has been underperforming in recent weeks. Since hitting an all-time high of $69,044 last month, Bitcoin has lost more than 30% of its value. So far, Bitcoin is struggling to stay below the $50,000 level, and the drop could extend even further.
There is no major catalyst behind Bitcoin's current poor performance. The cryptocurrency market is undergoing a major correction, after experiencing a sharp rally since the beginning of the year. The price drop comes despite numerous predictions by experts that the price of Bitcoin will rise before the end of the year.
Several cryptocurrency experts and analysts have predicted that Bitcoin would likely hit the $100K mark before the end of 2022. However, two weeks into a new year and Bitcoin's price has dropped more than 50% from the predicted target, and may fall further.
Main key indicators
The 4-hour BTC/USD chart is down as Bitcoin continues its weak performance at the end of 2022. As of this press time, Bitcoin is trading at $46,995, down more than 1% in the last 24 hours .
The MACD line is below the neutral zone, indicating a bearish market trend. In addition, the 14-day RSI out of 35 shows that Bitcoin is currently oversold and continues to face selling pressure from investors.
If the current market condition persists, Bitcoin will likely lose its key support level of $45,000 for the first time since September. An extended bearish performance would mean that the BTC would struggle to defend the $40k support level in the coming hours and days.
However, if bulls regain control, the BTC may recoup some of its losses and rebound towards the first major resistance level at $50,231. Unless there is a prolonged rally, the resistance level at $52,046 should limit any short-term bullish price movement.
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