Bitcoin is nearing the $20,000 mark

Although bitcoin has yet to test the major psychological threshold of $20,000, the cryptocurrency remains near this area, still showing a distinctly bearish trend from a charting perspective.

Pressure on BTC remains strong amid a global market sell-off and a wave of risk aversion. The Nasdaq, for example, closed more than 4% lower on Thursday, while the S&P 500 fell 3.25%. The Dow Jones index, for its part, fell below the key 30,000-point threshold for the first time in more than a year, dropping 2.42%. In Europe, France’s CAC 40 index ended the day down 2.39%, while Germany’s Dax index fell 3.31%.

On Thursday, European investors were particularly shocked by an unexpected 0.50% rate hike by the Swiss National Bank, which has been known as one of the most dovish central banks in the world so far.

As for the world’s top cryptocurrency, from a charting perspective the only positive is that the $20k threshold has yet to be tested by it. Bitcoin remains below several key thresholds that limit its upside potential, starting with its 200-week moving average, which currently stands at $22,365.

It should also be noted that based on the weekly chart, a breakout above $32,000 is needed to significantly improve BTC’s lower profile.

However, at this stage, a break below the key $20,000 threshold, which has not been seen since December 2020, remains a very likely scenario. This zone is all the more important because it corresponds to the December 2017 peak ($19,890).

A break above this zone in December 2020, however, was the trigger for BTC’s first rally, which took it to a peak of $60,000.

Below the $20,000 area and excluding psychological levels, the next support on the chart will be the peak reached in June 2019 at $13,765.


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