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BTC USDT daily chart. Source: TradingView | The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.
The shockwaves from yesterday’s explosion in the oil markets continued to damage oil prices and shrapnel from the blast caused damage to equities today as U.S. markets closed in the red after a nearly 3-week rebound.
West Texas Intermediate crude closed down 9.49% at $9.06, and June 2020 futures dropped from $22.58 to $13.12. What is clear is that investors remain fearful about the future of the entire industry as the coronavirus pandemic continues to dampen demand for oil.
SPX (S&P 500) daily chart with 9 on TD Sequential. Source: TradingView
Contracts-for-difference on gold since April 17. Source: TradingView
Crude’s turmoil continues to shake global markets. Prices on West Texas Intermediate (WTI) oil futures for expiring June sank 43 percent to $12 per barrel on Tuesday. This comes one day after May WTI contract prices plunged into negative territory - as low as -$40 per barrel at one point - for the first time ever. It closed the trading day at $11.57 per barrel.
Contracts-for-difference on WTI crude oil since April 17. Source: TradingView
Bitcoin has exploded in recent days, jumping all the way to the $7,000 mark for the second time in a month. This is a solid improvement over where it stood just last week, and yet some are predicting that things are about to fizzle out all over again.
This seems to be a running theme in the bitcoin arena. While BTC does well and many people seem to jump on board, there are others that refuse to see the light. Many still view bitcoin as a failing asset that has yet to make a serious mark on the financial industry. They were haters before, and they’ll continue to be that way until the final BTC unit is mined.
Image Courtesy of CryptoBirb
In early-March, Bitcoin incurred some of the roughest price action it has ever seen, with the benchmark cryptocurrency finding itself caught within a capitulatory decline that led it from over $8,000 to lows of $3,800.
This meltdown occurred concurrently with the global equities market seeing a massive selloff as investors began growing aware of just how serious the Coronavirus pandemic was.
In the time since this occurred, however, Bitcoin has been caught within a steady uptrend that has allowed its price to nearly double from these lows, leading one analyst to call it the “most resilient asset in the world.”
BTCUSD is looking to plunge deeper towards $5,300 | Source: TradingView.com, Coinbase
- Bitcoin prices fell to a near five-day low amidst rising cash demand.
- The cryptocurrency’s latest plunge has breathed life into two extremely bearish fractals.
- Both indicators see the price crashing inside the $5,300-5,700 area.
Bitcoin’s price fell nearly 0.38 percent on Wednesday as investors continued to hunt for cash to cover losses in traditional assets primarily driven by a colossal crash in the US oil markets.
The bitcoin-to-dollar exchange rate slipped to a new intraday low of $6,826, still maintaining support above key technical levels.
BTC’s USD trading pair looked relatively stable while compared equities, however, raising its potential to hunt for gains above $7,000 despite breaking below the level on Monday in the wake of oil’s historic crash below $0.
The volatility in the Bitcoin spot market has only made its traders more interested in trading the world’s largest cryptocurrency. The Bitcoin Futures market reflected this interest with rising Open Interest [OI]. Further, at the time of writing, an institutional player like Bakkt, one that was laying low after the unprecedented crash in March, was showing signs of recovery after it marked 20 April as the most active day in over a month. In fact, the Bakkt Bitcoin Futures volume on the opening day of the week was reported to be $28.4 million.
Bank of America (BofA) has a bullish view on gold and expects the prices of the precious metal to hit the $3,000 mark per ounce within the next 18 months, according to the bank’s latest report titled “The Fed can’t print gold.”
Per the report, gold is the “ultimate store of value,” and the prices have performed well over the last 15 months against other asset classes, even though the bullion recorded a hard sell-off in March. The asset traded around $1,678 today, representing 11% growth this year.
Ethereum has in the last 24 hours lost around 5%. This follows the financial markets’ jitters spread by a crashing oil market. The crypto market which was trading within resistance ranges felt the pressure with investors choosing to sell-off in case of a crypto crash.
This sell-off has seen a majority of cryptocurrencies shed off their weekend gains. For Ethereum, the largest altcoin has fallen back to its previous range of $170. Investors expect this range to hold as its set long term support.
As the industry moves closer to the Bitcoin third halving, and the COVID-19 pandemic still disrupts the global economy, a ripple effect is spreading across the global financial market. The halving coupled with a weak Bitcoin price is forcing an unprecedented cleanse to rebalance the network, making it efficient and healthy. Hashrate reduction has been traditionally seen as a negative indicator which reflects weaker network security, however, this is not always the case. Sometimes It’s a healthy correction to reset and reduce wasteful mining.
April 21 brought a new milestone to the Bitcoin (BTC) price. It was worth more than 7000 barrels of oil, significantly more than at any other point in history. However, this was not caused by an increase in the cryptocurrency’s price but rather a complete crash in the price of oil — which, at one point, had decreased by 99.99 percent within the day.
ETH/USD. Source: TradingView
Bitcoin has seen an interesting week of trading as it rebounded from the support at $6,600 last week. The support here was provided by a rising trend line and was bolstered by a .236 Fib Retracement level. After rebounding, it went on to break above $7,000 but fell short at $7,200 this weekend which caused the coin to roll over again.
The cryptocurrency has since dropped beneath $7,000 and is now trading back at the support provided by the rising trend line.
XRP/USD. Source: TradingView
- Following the Black Thursday market crash, Bitmex, once the king of Bitcoin futures, has lost market share.
- The Bitcoin derivatives market landscape is changing, and Binance is now emerging as the new leader.
- If the trend continues, will we see a more evenly distributed market? Or will Binance replace Bitmex as the dominate player?
The U.S government recently unleashed a $2 trillion stimulus package to help Americans offset the economic impact of COVID-19. That figure is more than double the amount of all the speculative capital locked up in the entire cryptocurrency market during its 2018 peak.
Cryptocurrency at large — Bitcoin, Ethereum, Litecoin, and everything else — collectively reached its all-time market cap high in January 2018, totaling $831 billion according to CoinMarketCap data.
The U.S. stimulus bill in response to coronavirus is 240% larger by comparison.
While decentralized finance (defi) solutions have grown popular on the Ethereum blockchain, developers have recently created similar systems by leveraging BTC’s network. A project called Atomic Loans claims to offer a noncustodial bitcoin-backed stablecoin solution, while Money on chain a new smart contract built on the RSK protocol, also offers a stablecoin token.