The cryptocurrency is trading in the green zone again, following a poor start to the week.
The cryptocurrency market is turning a corner following a poor start to the week. The market is up by 1.5% in the last 24 hours, with the total market cap still above the $1 trillion level.
Bitcoin has taken advantage of the ongoing market performance to stage a recovery of its own. After rallying past the $24k resistance level last week, Bitcoin started the week poorly and dropped below $23k on Tuesday.
However, the leading cryptocurrency is currently recovering and is trading above the $23k psychological level once again.
Bitcoin is up by 0.5% over the past 24 hours, which means it is underperforming against the broader cryptocurrency market. However, it could rally higher as the market continues to recover.
Key levels to watch
The BTC/USD 4-hour chart remains bearish despite Bitcoin currently trading in the green zone. Bitcoin’s technical indicators have been improving, indicating that the leading cryptocurrency could rally higher soon.
The MACD line remains below the neutral zone but is slowly climbing higher as Bitcoin is recovering from its recent slump.
The 14-day relative strength index of 46 shows that Bitcoin is no longer in the oversold region. However, Bitcoin needs to surge higher for the RSI to move into the overbought zone.
At press time, BTC is trading at $23,016 per coin. If the market recovery continues, BTC could break past the $23,860 resistance level over the next few hours. However, it would need the support of the broader cryptocurrency market to top last week’s high of $24,490.
Bitcoin is underperforming against the broader market, indicating that the bears haven’t relinquished control just yet. BTC could drop below the $22,492 support level if the bears regain control.
The leading cryptocurrency should comfortably defend its price above the $21,987 support level in the short term.