The cryptocurrency market is not having a good month and asset prices continue to fall.
The cryptocurrency market has been underperforming since peaking a month ago. The total value of the cryptocurrency market hit $3 trillion a month ago, when Bitcoin and Ether hit new highs.
However, Bitcoin and the market in general have been underperforming since then. Bitcoin price has dropped more than 30% from the all-time record of $69,044 and is currently struggling below the $50,000 level.
The losses were due to various catalysts in recent weeks. The emergence of the Omicron Coronavirus variant has affected global financial markets, including Bitcoin. Evergrande is the latest to hit the financial markets, and Bitcoin has also been hit.
So far, Bitcoin is battling $47,000, down more than 10% last week. The losses were huge, and several other cryptocurrencies also registered similar losses.
However, experts and market analysts believe the price of Bitcoin will remain above the $40K level in the near term. However, the cryptocurrency could be forced to defend the $45k resistance level if the current market condition persists.
Main key indicators
The 4-hour BTC/USD chart is bearish, similar to other cryptocurrencies on the market. The MACD line is in the bearish zone, while the RSI of 44 shows that Bitcoin will enter the oversold region soon.
If the current market condition is maintained, Bitcoin could be forced to defend the first major support level of $46,245 in the next few hours. In the case of a prolonged bearish performance, Bitcoin could drop below the psychological $45k level for the first time since October. The second highest resistance level is at $43,266.
On the other hand, Bitcoin could turn things around and rebound towards the $51,000 resistance level over the weekend. If the rally is sustained, Bitcoin could hit the $54,000 mark in the coming days.
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