Bitcoin’s struggle at the $20k mark has resulted in week-long unprecedented candles followed by no major support from the market.
Sometimes based on the micro changes, it appears as if the macro conditions are improving as well. But in the case of the crypto market, that is certainly not happening as both the micro and macro conditions are terrible.
The king coin had an opportunity to take advantage of the 8.44% rally it achieved on June 19 and carry it forward to once and for all escape the clutches of the $20k curse.
Sadly, that did not happen as BTC consolidated at the level it has been stuck at for the last seven days. The almost 40% crash of this month already brought BTC down from $31k, and now it might even lose $20k unless the trend changes.
The possibility of the same, while it may appear bleak, is not impossible. The Parabolic SAR, which indicates the active market trend currently resides above the candlesticks, highlights a downtrend in the case of Bitcoin.
The Relative Strength Index (RSI), on the other end, is yet to recover from its slip into the bearish zone. The indicator barely lingered in the bullish area before moving back under the neutral line on June 11.
These indicators combined indicate that for the next few days, BTC might remain consolidated, and once the active trend changes into an uptrend, BTC will have room to rise above $20k.
The cryptocurrency leading the altcoin rise was surprisingly not Shiba Inu this time but was Synthetix. One of the relatively lesser-known assets in the crypto space, SNX holds a market cap of $345 million.
Although at the time of writing, the MACD highlighted increased bullishness as a bullish crossover took place, the coin is not bound to continue rising. This is because while the rally was organic, it lost more than it gained today.
The Chaikin Money Flow (CMF) exhibits clear outflows today, which means that the coin might not rise further, even if it does not fall on the charts.
Investors cashing out and booking profits or liquidating their positions might have caused this instance, but regardless this is where the rise ends for SNX.
Holding a Mass Media Degree has enabled me to better understand the nitty-gritty of being a journalist and writing about cryptocurrencies’ news and price movements, effects of market developments, and the butterfly effect of individual assets nurtured me into a better investor as well.