Bitcoin risks dropping below $22k as the broader market retraces

Bitcoin risks dropping below $22k as the broader market retraces

By Hassan Maishera - min read

The broader cryptocurrency market is down by more than 2% in the last 24 hours.

The cryptocurrency market has been underperforming over the past 24 hours. Following last week’s rally, the broader market started this week in a bearish fashion.

The crypto market has lost more than 2% of its value in the last 24 hours, with the total market cap still above the $1 trillion mark.

Bitcoin rallied close to the $24k mark last week, adding more than 10% to its value within seven days. However, it has shed some of its gains and is down by more than 2% in the last 24 hours.

At press time, Bitcoin is trading above the $22k level and risks dropping below this psychological point if the broader cryptocurrency market continues to underperform.

Key levels to watch

The BTC/USD 4-hour chart has turned bearish as Bitcoin has been underperforming over the past 24 hours. The technical indicators show that Bitcoin has been struggling over the past few days. 

The MACD line has dropped below the neutral zone, indicating that the bears are currently in control of the broader cryptocurrency market.

The 14-day relative strength index of 39 shows that Bitcoin could enter the oversold region if the bears remain in control.

At press time, Bitcoin is trading around $22k per coin. If the bearish sentiment continues, the leading cryptocurrency could drop below the $21,549 support level. 

In the event of an extended bearish performance, BTC could drop below the $21k support level for the first time in a week. 

However, the bulls were able to pull BTC above $20k a week ago and could regain control of the market in the short term. If that happens, BTC could surge past the $22,500 resistance level again before the end of the day.

Unless there is an extended bullish momentum, BTC could find it hard to move past the $23,500 resistance level in the short term.