This weekend the cryptocurrency market showed weak performance, and Bitcoin may face further losses soon.
Over the weekend the broader crypto market trended downward. In the past 24 hours, total cryptocurrency market capitalization fell by more than 4% and now sits above $1.7 trillion.
Over the last week the crypto market has lost more than $200 billion. Bitcoin remains the largest cryptocurrency by market capitalization, but it has experienced losses in recent days.
At the time of writing, Bitcoin was trading above $38,000 per coin, having declined more than 2% over the past day. If the current market momentum continues, Bitcoin could face additional selling pressure and potentially slide to the psychologically important $35,000 level by the end of the week.
Key levels to watch
On the 4-hour BTC/USD chart the bias is bearish as negative sentiment intensifies. Technical indicators point to the possibility of further losses for BTC in the coming hours and days.
The MACD line sits below the neutral zone, indicating strong bearish momentum for Bitcoin. The 14-day relative strength index (RSI) at 48 suggests Bitcoin could enter oversold territory if the market remains in its current state.
If bears keep control, Bitcoin could drop below the first significant support level at $37,102 by the end of the day. That would mark the first time Bitcoin trades under $38,000 since the beginning of the month.
If the bearish trend persists, Bitcoin may be forced to defend the second major support level at $35,289. Bitcoin has not fallen to the psychologically important $35,000 level since February of this year.
On the other hand, if bulls regain control, Bitcoin could attempt to reclaim the $40,000 resistance within the next several hours. A second key resistance level at $42,154 may limit any further upside in the short term.