Bitcoin could drop towards the $25k level as bearish sentiment thickens

The broader cryptocurrency market has been underperforming in recent weeks.

The crypto market has been in a bearish trend for the past few days. Since the start of the week, the market has lost more than $400 billion.

So far today, the crypto market has lost more than 16% of its value, and the total market cap now stands above $1.1 trillion. The cryptocurrency market has lost more than 50% of its value since reaching an all-time of $3 trillion in November 2021.

Bitcoin remains the number one cryptocurrency by market cap. With a market cap of more than $500 billion, Bitcoin has lost more than 50% of its value over the past six months.

At press time, Bitcoin is trading at $28,415 per coin, down by more than 11% in the last 24 hours. Bitcoin has lost over 50% of its value since reaching an all-time high of $69k in November 2021.

Key levels to watch

The BTC/USD 4-hour chart is bearish as Bitcoin has been underperforming in recent weeks. The technical indicators show that Bitcoin is currently in a bearish trend.

The MACD line is below the neutral zone, indicating bearish momentum. The 14-day relative strength index of 26 shows that Bitcoin is currently oversold.

If the bearish momentum continues, Bitcoin could slip below the first major support level at $26,762 before the end of the day. In the event of an extended bearish period, Bitcoin will trade below the $25k level for the first time in nearly a year.

However, if the bulls regain control of the market, Bitcoin could retest the $30k resistance level again soon. The resistance level at $33k should cap further upward movement in the short term.