Although bitcoin has not yet tested the main psychological threshold of $20,000, the cryptocurrency remains close to this area, still demonstrating a distinctly “bearish” trend from the point of view of the chart.

The 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 threshold of 30,000 points for the first time in more than a year, falling by 2.42%. In Europe, the French CAC 40 index ended the day down by 2.39%, while the German Dax index fell by 3.31%.

On Thursday, European investors were particularly shocked by the unexpected 0.50% rate hike by the Swiss National Bank, which until now was known as one of the most “dovish” central banks in the world.

As for the main cryptocurrency of the world, from a graphical point of view, the only positive thing is that the threshold is $ 20 thousand. not tested by her yet. Bitcoin remains below several key thresholds that limit its growth potential, starting with a 200-week moving average that currently stands at $22,365.

It should also be noted that, judging by the weekly chart, a break above $32,000 is necessary for a significant improvement in the lower BTC profile.

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

A break above this zone in December 2020 was the trigger for the first BTC rally, which led 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.

Bitcoin was close to the $ 20,000 mark . This is a psychologically important threshold, a fall below which can trigger major liquidations. But this is probably not the bottom yet, says Apifiny CEO Haohang Xu, given the lack of optimistic sentiment and deteriorating liquidity.

“With an increase in rates, we will actually see a decrease in profitability in the crypto space for all assets,” he wrote in a note. “Borrowing from the Fed was very important for everyone involved in the crypto market, whether it’s traders trying to profit from contango, or market makers trying to arbitrage on exchanges.”

In contango, the futures price of a commodity exceeds its spot price. Xu noted: “Due to the disappearance of contango and the narrowing of the spread on the crypto market, traders have recently seen fewer incentives to use these strategies and, therefore, less need to borrow. All of the above, combined with the general market conditions, will force sellers to lower rates to a much lower level.”