Bitcoin suffered heavy losses last week but has shown recovery over the past 24 hours.
The cryptocurrency market endured significant declines last week, wiping out more than $300 billion in market value during that period.
Bitcoin, the world’s leading cryptocurrency, was one of the biggest losers last week. The flagship crypto traded above $40,000 at the start of the week but then lost more than 10% of its value, sliding toward the $35,000 level.
Over the past seven days, Bitcoin fell by more than 16%. Since that drop, the token has begun a gradual recovery.
In the last 24 hours, Bitcoin has gained nearly 2% and is currently trading above $36,000. If this recovery momentum holds, Bitcoin could attempt to push back toward the $40,000 level in the coming days.
In recent weeks, the primary cryptocurrency has struggled to break the $45,000 resistance area. Without a broad market rally in the near term, it will be difficult for Bitcoin to reach that level soon.
Key levels to watch
The BTC/USD 4-hour chart is currently showing positive signs thanks to Bitcoin’s recent performance. Technical indicators are gradually improving as the price recovers.
Bitcoin’s MACD line remains below the neutral zone following the more than 16% weekly decline, but the RSI reading around 53 indicates the asset has moved out of oversold territory and could rise in the coming days.
If the current bullish momentum continues, BTC could break the first resistance near $38,462 within hours. A sustained rally might push Bitcoin back above the $40,000 mark over the next day or two.
Absent a major rally across the broader cryptocurrency market, Bitcoin may find it difficult to surpass the psychological $43,000 level in the immediate term.