The cryptocurrency market underperformed over the past 24 hours after its recent rally.
The broader cryptocurrency market has performed well in recent weeks. Following the latest rally, total crypto market capitalization surpassed the $2 trillion mark, with Bitcoin and Ether showing relatively strong performance.
Bitcoin reached $47,000 earlier this week but struggled to clear the psychological $50,000 level. It lost nearly 3% of its value over the last 24 hours and faces the risk of slipping below $45,000 for the first time this month.
At the time of writing, BTC is trading at $45,373, down 2.6% over the past 24 hours. This weaker performance comes despite MicroStrategy announcing that it had purchased $190 million worth of Bitcoin.
MicroStrategy remains the largest corporate holder of Bitcoin, having spent more than $3 billion to acquire BTC so far. Historically, news of additional Bitcoin purchases by MicroStrategy has acted as a short-term catalyst for positive price action, signaling the company’s confidence in the leading cryptocurrency.
However, Bitcoin’s price fell by more than 2% despite the recent announcement.
Key levels to watch
The BTC/USD 4-hour chart looks bearish as Bitcoin underperformed over the last 24 hours. Technical indicators suggest that another downward move could be on the cards.
The MACD line has crossed below the neutral zone amid the current downward momentum. The 14-day Relative Strength Index reading of 39 indicates Bitcoin could soon enter oversold territory if selling pressure persists.
If bears maintain control, Bitcoin could drop below the $45,000 level for the first time in weeks. With sustained bearish momentum, BTC may trade around the next major support level at $43,785 before the day ends.
Conversely, if bulls regain control, Bitcoin could retest the $47,000 resistance level in the coming hours.