The confidence in the crypto space has certainly been shaken in the past month or so. There was the whole Terra/Luna fiasco in May and then now the drama with Celsius.
The slump over the weekend is extending into the new week and while other asset classes are taking a breather from yesterday's rout, cryptos are continuing to come under pressure so far today. Bitcoin is down nearly 6% again to below $22,000 with the low earlier hitting $20,817.
From a technical perspective, price action is testing support at the 200-week moving average (blue line) at $22,360 but one can argue that the more important psychological level at this point is the $20,000 mark.
A break below the latter would shatter confidence even more and threatens a dive into obscurity again for cryptos in general.
It's all fun and games when the memes bring in the dollar bills but it's now tears and agony for those caught out at the top of this latest collapse.