Bitcoin Tumbles Over The Weekend As Oil Markets Collapse After OPEC Pricing War Begins
- Bitcoin saw a 10.5% price collapse over the past 24-hours of trading as the cryptocurrency drops beneath $8,000.
- The cryptocurrency fell after the wider market faces huge downturns around the globe.
Bitcoin saw a 10% price decline over the past 24 hours of trading as it collapses beneath the $8,000 level. It rolled over a few days ago after climbing above $9,000 and went on to tumble amidst fears of a pricing war in oil between Saudi Arabia and Russia.
The two OPEC members had been at a meeting on Friday in which they could not agree to a deal regarding the production levels of oil barrels. In retaliation, Saudi Arabia slashed the cost of oil barrels to their Chinese partners by as much as $7 and stated that they would ramp up their production to 2 million barrels per day.
This news caused Oil prices to plummet by over 30% and the global markets followed suit with the S&P 500 falling over 5% and the Dow Jones dropping by 1,200 points.
Bitcoin Price Analysis
BTC/USD – Daily CHART – SHORT TERM
Market Overview
Taking a look at the daily chart above, we can see that Bitcoin collapsed beneath a rising trend line over the weekend. After breaking beneath, it went on to drop beneath support at $8,500, $8,250, and $8,000.
The market continued to fall further lower until support was found at $7,750 which is provided by a downside 1.414 Fibonacci Extension level.
Short term prediction: BEARISH
The market prediction is now bearish for Bitcoin, especially after creating a fresh multi-month low recently.
If the sellers push lower, the first level of support lies at $7,750. Beneath this, support lies at $7,630 (.786 Fib Retracement), $7,500, $7,417 (downside 1.618 Fib Extension), and $7,265 (.886 Fib Retracement).
Key Levels
Support:$7,750, $7,630, $7,500, $7,417, $7,265, $7,100, $7,000.
Resistance: $8,000, $8,250, $8,461, $8,672, $8,979, $9,000, $9,100, $9,270, $9,506, $9,740, $9,975, $9,000, $9,270, $9,500.
The cryptocurrency fell after the wider market faces huge downturns around the globe.
Disclaimer
The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
Yaz is a cryptocurrency technical analyst and has been actively trading financial markets for over 7years, with 4 years of crypto experience. He is an Economics graduate who has taken a keen interest on the future potentials of blockchain in the financial industry. Aside from cryptocurrency and trading Yaz enjoys spending his time watching his favourite football team (Liverpool F.C.) compete as well as keeping up-to-date with the UFC. Follow him at @TcmYaz.
Published at Mon, 09 Mar 2020 12:25:29 +0000
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