Bitcoin continues to trade above $20k per coin, but could soon decline if the broader market continues to underperform.
Bitcoin, the world’s leading cryptocurrency, is currently trading at around $20,200 per coin. This comes after it failed to move above the $21k resistance level on Tuesday despite adding more than 3% in value.
The broader cryptocurrency market has retreated after gaining more than 4% in value yesterday. To date, the crypto market has lost less than 1% of its value, with the total market capitalization now at around $990 billion.
After failing to cross the $21k resistance level, bitcoin is down 1% over the past 24 hours. If the market performance continues, Bitcoin could fall below the psychological level of $20k for the second time in a week.
prime level to watch
The BTC/USD 4-hour chart is bearish as bitcoin has underperformed over the past 24 hours. Technical indicators suggest that Bitcoin is retreating after improving yesterday’s performance.
The MACD line fell into negative territory on August 25 and has remained there since then. Thus, indicating strong bearish momentum for Bitcoin.
The 14-day Relative Strength Index of 50 suggests that if the bearish momentum continues, Bitcoin could fall into oversold territory.
As of press time, BTC is trading at $20,293 per coin. If the bearish trend continues, BTC could decline to the $19,588 support level before the end of the day.
BTC should maintain its position above the $18,950 support in the near term until the bearish momentum gains momentum.
However, the bearish hold is not strong, and the bulls can still gain control of the market. If this happens, BTC could cross the first major resistance at $21,059.
Unless there is an extended bullish performance, the second key resistance level at $22,722 should extend further upwards in the near term.