Bitcoin has dropped below the $40k level again as the broader market continues to struggle.
The cryptocurrency market has been struggling over the past few days, and the bearish trend could continue in the coming days. The broader market has lost more than 4% of its value in the last 24 hours.
At the moment, the total cryptocurrency market cap has dropped to the $1.8 trillion level. If the bearish trend continues, the total crypto market cap could drop to the $1.7 trillion level before the end of the week.
Bitcoin, the world’s leading cryptocurrency by market cap, has lost more than 3% of its value so far today. At press time, BTC is trading around $38,900 per coin. Bitcoin has lost more than 8% of its value in the past seven days.
The latest bearish trend puts Bitcoin even further below its all-time high price of $69,044, which was achieved in November 2021.
After dropping below the $40k psychological level, the bulls would need to defend the $35k support region to allow Bitcoin to regain its value of around $45k in the short term.
Key levels to watch
The BTC/USD 4-hour chart is bearish at the moment as the bears control the market. The technical indicators show that BTC is underperforming and could soon slip lower.
The MACD line is below the neutral zone, indicating a bearish momentum currently in play. The 14-day RSI of 30 shows that Bitcoin is currently in the oversold region and could face further selling pressure in the short term.
If the bearish trend continues, Bitcoin could drop below the first major support level at $37,527 over the next few hours. In the event of an extended bearish run, BTC could be forced to defend the major support level at $35,000.