Bitcoin (BTC) Brushes Off US Crude Oil Crash, Reclaims $7,050 Support
As the price of WTI Crude Oil went into negative territory earlier on Monday, Bitcoin’s (BTC) only dipped as low as $6,750.
With US Oil now back into positive territory, the King of Crypto has managed to reclaimed another support zone at $7,050.
With the halving only days away, BTC might manage to at least reach a value of $8,000.
Early Monday, and after the weekly close for Bitcoin (BTC), we were optimistic that the earlier identified $7,050 support zone would provide the much-needed boost for the King of Crypto to reclaim $8,000. However, something historic happened. The price of US Crude Oil went to $0 with futures contracts of the commodity going into negative territory of $-40.
Bitcoin (BTC) Held its Own
When we analyze the time that the price of US Crude Oil dipped in the markets, we notice that the King of Crypto managed to hold its own by retaining the majority of its value. Bitcoin found solid support around the $6,750 level which is not too far off from our favorite support zone of $6,600.
Brief Technical Analysis of BTC/USDT
For a better view of BTC’s price action, we shall zoom out to the 1 Day BTC/USDT chart courtesy of Tradingview.com. Taking a closer look at the chart, we observe the familiar resistances as follows:
In terms of trade volume, Bitcoin is in the green indicating that there is renewed interest in buying the digital asset. Its current price of $7,090 is above the 50 (white) moving average thus indicating a level of bullish momentum. With time, we will probably have a scenario where the death cross on the daily chart is completely nullified. Additionally, for there to be a serious bullish scenario, BTC/USDT has to overcome the 200 (green) daily moving averages.
What About the Future of the Stock Markets?
The Coronavirus dip of mid-March taught us one thing: that Bitcoin was heavily correlated to the S&P 500. Therefore, as we continue to observe the crypto markets, one eye should be on the lookout for any sudden price swings in the S&P 500. Further looking at the daily S&P 500 chart, all logic points to a possible double bottom at $2,200 in the next month or so. Crypto traders are advised to also have an ear out on any news related to COVID19, that might have an impact on the major global economies.
Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of EWN or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you.