Bitcoin continues to trade above $20k per coin but could decline soon if the broader market underperforms further.

Bitcoin, the world’s leading cryptocurrency, is currently trading at around $20,200 per coin. This comes after failing to surge past the $21k resistance level on Tuesday despite adding more than 3% to its value.

The broader cryptocurrency market has retraced after increasing its value by more than 4% yesterday. So far today, the crypto market has lost less than 1% of its value, with the total market cap now around $990 billion.

After failing to move past the $21k resistance level, Bitcoin is down by 1% in the last 24 hours. If the market continues to underperform, Bitcoin could drop below the $20k psychological level for the second time in a week.

Key levels to watch

The BTC/USD 4-hour chart is bearish as Bitcoin has been underperforming over the last 24 hours. The technical indicators show that Bitcoin is retracing after improving its performance yesterday.

The MACD line dropped into the negative zone on August 25th and has remained there ever since. Thus, indicating strong bearish momentum for Bitcoin.

The 14-day relative strength index of 50 shows that Bitcoin could head down into the oversold region if the bearish momentum continues. 

At press time, BTC is trading at $20,293 per coin. If the bearish trend continues, BTC could drop towards the $19,588 support level before the end of the day. 

Unless the bearish momentum thickens, BTC should maintain its position above the $18,950 support level in the short term.

However, the bearish grip is not tight, and the bulls might still regain control of the market. If that happens, BTC could move past the first major resistance level at $21,059. 

Unless there is an extended bullish performance, the second major resistance level at $22,722 should cap further upward movement in the short term. 

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