The leading cryptocurrency underperformed over the past 24 hours and may face further losses.
Bitcoin has underperformed during the last 24 hours, losing more than 5% of its value so far today.
As a result of this recent decline, BTC has fallen below the $40,000 area for the first time in over two weeks.
Market analysts say the ongoing conflict in Ukraine is weighing on broad financial markets, including Bitcoin. Additionally, the prospect of aggressive moves by the Federal Reserve this year continues to influence market sentiment.
Alex Kuptsikevich, senior financial analyst at FxPro, said:
“Bitcoin has clearly lost its role as a defensive asset recently, showing almost no correlation with gold, which was in strong demand on Wednesday and Thursday.”
The wider cryptocurrency market also underperformed in the past 24 hours. At the time of writing, total market capitalization stands at about $1.8 trillion, down more than $100 billion over the last day.
Key levels to watch
The BTC/USD 4-hour chart is currently strongly bearish, with Bitcoin shedding more than 5% of its value in recent hours. At the time of writing, BTC is trading just below the $40,000 mark.
The MACD line has dropped into negative territory following Bitcoin’s continued weakness. The 14-day Relative Strength Index reading of 35 indicates Bitcoin is currently oversold.
If bears remain in control, BTC could lose the first major support level at $38,395 within the next few hours. Unless the downside accelerates, BTC is expected to hold above the near-term support zone around $36,000.
However, if bulls regain control, BTC could reclaim the resistance level at $42,780 before the end of the day.