Why Is Bitcoin Down More Than 5% Today?

 

The leading cryptocurrency has underperformed over the past 24 hours and could be set for more losses.

Bitcoin has underperformed over the past 24 hours. The leading cryptocurrency has lost more than 5% of its value to date.

Thanks to this recent drop, BTC has slipped below the $40,000 region for the first time in more than two weeks.

Market analysts believe that the ongoing conflict over Ukraine is affecting the broader financial markets, including Bitcoin. Additionally, the likelihood of aggressive Federal Reserve action this year continues to impact market sentiment.

Alex Kuptsikevich, Senior Financial Analyst at FxPro said:

“Bitcoin has clearly lost its function as a defensive asset lately and shows almost no correlation to gold, which was in high demand on Wednesday and Thursday.”

The broader cryptocurrency has performed poorly over the past 24 hours. At the time of writing, the total market cap is around $1.8 trillion, down over $100 billion in the last 24 hours.

Important levels at a glance

The BTC/USD 4-hour chart is currently very bearish, with Bitcoin losing more than 5% of its value in the past few hours. At the time of writing, BTC is trading just below the $40,000 mark.

The MACD line has fallen below the neutral zone after Bitcoin's continued poor performance. The 14-day relative strength index of 35 shows that Bitcoin is currently oversold.

If the bears remain in control, BTC could lose the first major support level at $38,395 in the next few hours. Barring an extended downtrend, BTC should remain above the USD 36,000 support level in the near term.

However, if the bulls regain control of the market, BTC could surpass the USD 42,780 resistance level before the end of the day.

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