The performance of Bitcoin since the second week of November has been weak, and the cryptocurrency may soon record further losses.
The leading cryptocurrency has underperformed in recent weeks. Since hitting an all-time high of $69,044 last month, Bitcoin has lost more than 30% of its value. At the time of writing, Bitcoin is struggling below the $50,000 mark, and the decline could widen further.
There is no major catalyst for Bitcoin’s current poor performance. The cryptocurrency market is going through a major correction after experiencing a massive rally since the beginning of the year. The fall in price occurs despite numerous predictions by experts that the price of Bitcoin will rise before the end of the year.
Several crypto experts and analysts predicted that Bitcoin would probably hit the $100,000 mark before the end of 2021. However, two weeks after the start of a new year, the price of Bitcoin is more than 50% below the predicted target and could probably continue to decline.
Important levels at a glance
The BTC/USD 4-hour chart is currently in decline, as Bitcoin continues its weak performance until the end of 2021. At the time of writing, Bitcoin is trading at $46,995, which is a decrease of more than 1% over the past 24 hours.
The MACD line is below the neutral zone, which indicates a bearish market trend. In addition, the 14-day RSI of 35 shows that Bitcoin is currently oversold and continues to face investor selling pressure.
If the current market situation continues, Bitcoin will probably lose the large support level at $ 45,000 for the first time since September. A prolonged bearish performance would mean that BTC would struggle to defend the $40,000 support level in the coming hours and days.
However, if the bulls regain control, BTC could recover some of its losses and recover towards the first major resistance at $50,231. Unless there is a longer rally, the resistance level at $52,046 should limit any short-term upward movement.