The leading cryptocurrency lost a key support level above $45,000 last week and is now struggling to hold above the $40,000 mark.
The cryptocurrency market shed nearly $300 billion over the past week. Total crypto market capitalization was about $2.3 trillion last week but has since slipped below the $2 trillion threshold.
This decline in market capitalization coincides with large losses for Bitcoin and other major digital assets. Bitcoin’s market cap fell from an all-time high near $1.1 trillion two months ago to just over $780 billion today.
On November 10, Bitcoin reached a record price of $69,044. Since then, the leading cryptocurrency has lost more than 40% of its value and is now trading slightly above $41,000 per coin.
Bitcoin lost its major support above $45,000 last week. Over the weekend it managed to stay above $40,000 as the downtrend continued, but with recent poor performance, Bitcoin may struggle to remain above $40,000 in the coming days.
If bears maintain control, BTC could fall below the $40,000 support level before the end of the week.
Key levels to watch
The BTC/USD 4-hour chart is very bearish following Bitcoin’s recent weak performance. BTC has dropped more than 1% in the past 24 hours and faces additional selling pressure across the market.
The MACD line currently remains in negative territory, indicating downward momentum for the asset. A 14-day Relative Strength Index reading of 49 suggests BTC is moving toward the oversold region if the weakening trend continues.
If bears remain in control, BTC could slip below the psychological $40,000 level within hours. With a sustained downturn, BTC might trade below $40,000 for the first time in nearly six months.