Trading Bitcoin ended at $ 8024. For seven days, the leading cryptocurrency depreciated by 9.92%, reaching a new low on the weekly timeframe. The last time BTC was trading below $ 8,000 on January 10th.

The correction in the crypto industry occurred against the backdrop of the collapse of traditional markets: today the DJI, S&P 500 and oil futures rapidly depreciated.

World economy crashes

Futures on the Dow Jones Index depreciated by more than 1200 points (-4.6%), futures on the S&P 500 fell 4.89%, and Brent Crude oil fell by 30%. The volatility in the oil market, apparently, is due to the disagreement between Saudi Arabia and Russia regarding a possible reduction in oil production amid falling demand for the product worldwide.

According to reports, despite Russia's position, Saudi Arabia plans to increase production, so investors are seriously discussing a possible price war.

It is also important that on March 8, the Italian government announced the introduction of quarantine in the northern region. In fact, this means that almost 16 million people will be seriously limited in movement, and catering establishments, schools, sports complexes and travel companies will be closed. The spread of the COVID-19 virus has particularly affected Italy, where today more than 7,000 people are infected and 366 people have died.

In France, to combat the spread of coronavirus, all events with an audience of more than 1000 people have been canceled, 19 people have already died in the country and more than 1126 are infected.

Bitcoin did not avoid a correction, the conditions for which were formed in the stock markets. Currently, the leading digital asset is trading below $ 8,000.

Implementing the head and shoulders pattern

For several weeks, analysts have warned that a fall below the critical support of $ 9,400 could lead to a strong dump, and a downward rebound from $ 9,200 on March 7 served as a catalyst for the onset of the collapse. Thanks to the last drop on the BTC daily chart, the right shoulder of the head and shoulders pattern has formed.

Surprisingly, the price of Bitcoin confidently broke through the 200-day MA, 128-MA and key support in the range of $ 8,200 -8400.

According to Skew, an $ 92 million position was liquidated in an hour on BitMEX. The Bitcoin fear and greed index fell into the area of ​​“extreme fear”, reaching the level of 17 points, which was last observed on December 18, 2019.

                                                            
Bitcoin is currently trading below $ 7,900. If the bulls fail to provide a corrective rebound, the BTC price will continue to fall to $ 7600. Below $ 7,600, according to the visible volume profile indicator (VPVR), there is a high-volume unit at $ 7422. Since November 23, 2019, this area has been acting as a support.

Against the background of the correction of the leading cryptocurrency, the leading altcoins also depreciated, almost all large coins lost more than 10% of their value. Total industry capitalization fell below $ 230 billion.