The Bitcoin price is hovering below the key support of $45,000. In the first quarter of 2021, Bitcoin was on a bullish run that led it to hit a record high of $63,000. However, the world’s leading cryptocurrency is nowhere to be seen. Bitcoin has a total market capitalization of $845 billion, down from more than $960 billion. The coin’s total volume traded in the last 24 hours has slumped 10.20% to $30 billion.
Bitcoin’s failure to fall back into its previous $50,000 rally has dampened the overall crypto market sentiment. According to data by CoinMarketCap, the global crypto market capitalization is hanging on to the $2 trillion level by a whisker. The total crypto market cap currently stands lower at $2.04 trillion, after recently hitting $2.35T in the past few weeks.
The Bitcoin price has declined nearly 14% in the last seven days. This followed El Salvador’s move to launch the world’s leading digital asset as the legal tender. While the launch was successful, it started at a rocky start due to technical glitches in the official digital wallet. Bitcoin fell more than 11% on Tuesday, as El Salvador launched the coin as its new legal tender.
Bitcoin has a close correlation to most digital coins. Therefore, its decline saw most cryptocurrencies follow suit. Ethereum, the world’s biggest altcoin, has slipped nearly 17% in the past week. Cardano has dropped more than 15% in the past seven days.
The four-hour chart shows that the Bitcoin price has been trading sideways for the past week. At the time of writing, the coin was trading 3.00% lower at $44,645. It is trading below the 25-day and 50-day exponential moving averages. It is also moving below the 50-day moving average.
Therefore, bulls need to gain momentum to push the price past the 50 DMA at $47,500. If this happens, the next logica target will be the crucial level at $50,000. However, a move below the key support at $42,640 will invalidate this bullish view.