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 chart perspective.
Pressure on BTC remains strong amid a sell-off in the global market and a wave of risk aversion. The Nasdaq, for instance, closed more than 4% lower Thursday and the S&P 500 is down 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, falling 2.42%. In Europe, France’s CAC 40 index ended the day down 2.39% and Germany’s Dax index fell 3.31%.
On Thursday, European investors were particularly shocked by a surprise 0.50% rate hike by the Swiss National Bank, which has so far been known as one of the world’s most dovish central banks.
As for the world’s main cryptocurrency, from a graphical point of view, the only positive thing is that the $20k threshold has not yet been tested by it. Bitcoin remains below several key thresholds that limit its upside potential, starting with the 200-week moving average, which is currently at $22,365.
It should also be noted that, based on the weekly chart, a break above $32,000 is necessary for a significant improvement in BTC’s lower profile.
At this point, however, 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 breakout above that zone in December 2020 was the trigger for BTC’s first rally, which brought it to a peak of $60,000.
Below the $20,000 area and excluding psychological levels, the next support on the chart would be the peak reached in June 2019 at $13,765.