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Bitcoin Struggles at $20K As NEXO Falls by 84% to 18-Month Lows

·2 min read

Key Insights:

  • Bitcoin, trading at $20.5k, is doing its best to stay afloat.

  • NEXO fell below the $1 mark earlier this week during the June 13 crash.

  • Price Indicators point toward further drawdown this month.

Known as the king coin, Bitcoin has been leading the crypto market towards its doom as the worldwide economy takes a hit as well.

Sharing a high correlation with the S&P 500 Index, BTC is edging closer to losing its $20k support which stands to be a crucial psychological level.

Bitcoin Is in Trouble

BTC is currently at the price level it was last at in January 2021, Since then, after enduring multiple rallies and crashes, Bitcoin managed to make it $67.5k, marking its all-time high.

However, the journey since then has been terrifying and frustrating for its investors as BTC has reduced by 70% in the last seven months.

34.6% of this came mostly during the recent crash, which also pushed BTC below $30k. Currently trading at $20.5k, BTC is showing vulnerability for further depreciation.

The MACD is highlighting a bearish crossover, and although the bearishness might appear to be receding, the broader market fear will not make it easy for BTC to recover.

This is also because the price fall was organic and not panic-induced, given the outflows observed on Chaikin Money Flow are reasonable against a bearish market.

If the altcoins fail to flip the trend and help BTC initiate a recovery, it won’t be long before the king coin slips to $19k.

NEXO – The Coin of the Day

Usually, that term is used positively, but since the entire market is negative. NEXO naturally becomes the highest loser of the day.

Down by 16% in 24 hours, the altcoin is only adding to its losses after declining by 40% in a week. NEXO’s volatility has been a bane and a boon for the altcoin for a while now.

This was helpful in the cryptocurrency almost establishing a new all-time high back in November and rallying by nearly 65.2% in a single day in May. 

But at the same time, the dips observed by the altcoin have resulted in NEXO falling by 83.9% from its all-time high of $4.055.

Trading at $0.65, the cryptocurrency is closer to depreciating further given its inching closer towards the oversold zone, a fall that will take the coin farther away from the ATH.

As it is, the downtrend displayed by the Parabolic SAR has brought the coin to an 18-month low. 

This article was originally posted on FX Empire