Bitcoin is down nearly 7% on the day and looks to be contesting a run below its 200-week moving average (blue line) and more importantly, sellers are looking to take price towards a test of the pivotal $20,000 level.

It is one of the more symbolic price levels for Bitcoin as a break above that back in December 2020 saw price skyrocket and the rest as they say, is history. As such, the $20,000 mark represents an important psychological level not just for Bitcoin but also for the confidence in the crypto market in general.

The recent deterioration in sentiment alongside the technical collapse suggests that it seems inevitable that we will test the key level. The question now is whether Bitcoin can survive such a potential breakdown and can it ever recover from such a pitfall?

Elsewhere, Ethereum is also down by nearly 11% on the day to $1,055 as the selloff continues in cryptos.