BTC Drops Below $39,000

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The cryptocurrency market underperformed this weekend and Bitcoin could post further losses soon.

The broader cryptocurrency market is in a bearish trend this weekend. In the past 24 hours, the total cryptocurrency market cap has fallen by more than 4% and is currently above $1.7 trillion.

In the past seven days, the broader crypto market has lost more than $200 billion. Bitcoin remains the number one cryptocurrency by market capitalization, but has recorded losses in recent days.

At the time of writing, Bitcoin is trading above $38k per coin, down more than 2% in the past 24 hours. If market momentum is maintained, Bitcoin could face further selling pressures before the end of the week and slide towards the psychological level of $35k.

Main levels to watch

The BTC/USD 4 hour chart is currently bearish as bearish sentiment in the market thickens. The technical indicators show that BTC could take further losses in the coming hours and days.

The MACD line is below the neutral zone, indicating strong bearish momentum for Bitcoin. The 14-day relative strength index of 48 shows that Bitcoin could soon enter oversold territory if current market conditions continue.

If the bears maintain control, Bitcoin could dip below the first major support level of $37,102 before the end of the day. This would be the first time Bitcoin has traded below USD 38 since the beginning of the month.

In the event of a prolonged bearish run, Bitcoin may be forced to defend the second major resistance level at $35,289. Bitcoin has not tested the psychological level of $35k since February.

However, if the bulls regain control, Bitcoin could test the $40k resistance level in the coming hours. The second major resistance level at USD 42,154 should limit any further upward movement in the near term.

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