The crypto market has been in a bearish trend for the past few days. With a decrease of more than $400 billion since Monday. Bitcoin, the world’s largest cryptocurrency by market capitalization, has also been affected.
To date, the cryptocurrency market has lost nearly 16% of its value, and the overall market cap is about $1.1 trillion. Since hitting an all-time high of $3 trillion in November 2021, the cryptocurrency market has plummeted more than 50%.
Bitcoin is still the most valuable cryptocurrency, with a market cap of over $500 billion. However, Bitcoin has lost over 50 percent of its value in the last six months.
The current market sentiment is bearish, and Bitcoin could fall to around $25,000. This would mark a decrease of more than 90% from its all-time high of nearly $65,000 in April 2021.
Investors are worried about the possibility of tighter regulations on Bitcoin and other cryptocurrencies. In addition, Bitcoin’s energy-intensive mining process is coming under increasing scrutiny.
The cryptocurrency market is highly volatile, and prices could rebound in the future. However, the current bearish sentiment means that Bitcoin could fall to around $25,000 shortly.
At the time of writing, Bitcoin is valued at $28,415 per coin, down by more than 11% in the previous 24 hours. Since peaking at $69k in November 2021, Bitcoin has lost more than 50%.
Critical levels to watch
The BTC/USD 4-hour chart is bearish, as Bitcoin has underperformed in recent weeks. The technical indicators suggest that Bitcoin is currently in a declining trend.
The 50 EMA is currently at $32,800, and the 200 EMA is currently at $40,800. Bitcoin will need to close above these levels to invalidate the bearish trend.
Support levels are at $27,000 and $25,000. A break below these levels could see Bitcoin falling to around $22,000.
The MACD line is below the neutral zone, suggesting that Bitcoin’s momentum is declining. The 26-day relative strength index indicates that Bitcoin is currently oversold.
Therefore, the Bitcoin bulls need to push prices above the $40,000 level to invalidate the bearish trend. Above this level, Bitcoin could rally to around $50,000.
If the bearish trend continues, Bitcoin may drop below $26,762 as the day draws to a close. Which would be its first significant support level. The price of Bitcoin will fall below $25k for the first time in nearly a year if the bearish momentum persists.
Bitcoin’s recent price action has spooked investors, with many fearing that the Bitcoin bull market has finally come to an end.
While it’s certainly possible that Bitcoin’s price could continue to decline in the short term. It’s important to remember that the cryptocurrency is still up over 400% from where it was just a year ago.
However, if the bulls repossess control of the market, Bitcoin could revisit the $30k resistance level soon. In the near term, the $33k resistance level should prevent further price appreciation.
Bitcoin, the world’s largest cryptocurrency by market capitalization, has also been affected, losing more than 20% of its value since Monday.
Bitcoin is currently trading at around $33,000, and it could fall to around $25,000 in the next few days if the bearish trend continues.
The coin and other cryptocurrencies are still a relatively new asset class, and their long-term future remains uncertain. However, the current bearish sentiment suggests that prices could fall further in the short term.
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