Volatility has increased again in the midst of an escalation of financial stress, driven recently by the war in oil prices. Here a technical analysis of Bitcoin about it. Despite the attempt to reach an agreement by OPEC to decrease production of crude oil, Saudi Arabia ended up eliminating such plans to dramatically decrease the price of their oil. This after Russia refused to lower its pumping. The arab country also increased their domestic production in the midst of a sharp decline in the demand for the black gold, the product of quarantines by the Coronavirus. As a result, the reference prices of the oil will plummet immediately. The West Texas Intermediate (WTI), the u.s. drops by more than 32%, to reach USD 27, by touching an area of a minimum of historic. This has been the biggest percentage drop of the oil markets since the First Gulf War, which occurred in 1991.
Impact of war on oil prices in other markets
This being a situation of nature macro economic, other markets are also affected. Canadian dollars and australian performed a flash crash in the early morning hours of Monday, ensuring a week of high volatility in the forex market. Chart of the australian dollar vs the. us dollar on temporary daily. The 10-year bond of the united States fell for the first time in the history below 0. Performance of the bonds of the government of the united States to 10 years. The volatility index of the S&P 500 shot up again. He even came to surpass the levels reached during the week of the 24th to the 28th of the last month. It is a situation of extreme volatility I have been to the future of the U.S. would be suspended for 15 minutes to dispel the power of fear in the markets. If it continues to increase, this market could close for a whole day. Volatility index S&P500 (VIX). The market of cryptocurrencies also woke up with red numbers. A new fall in the price of Bitcoin makes it lose more than 10% of its value in the last 24 hours. Many doubt the veracity of the theory that classified BTC as a value shelter. However, the gold, despite the fact that it has not fallen much, nor has it increased in price exponentially. Contrary to what you thought would happen in a situation like that is live, the refuge par excellence lost part of its gains after reaching a maximum of 5 years. But, will you be dropping Bitcoin to the couple of other markets? Let’s go to the charts for the price to perform a technical analysis of the current situation.
As we discussed in a recent publication, the bears took control momentarily after turning the resistance left by the price. This happened after reach USD 10.350 in October 2019. Subsequently, a sail weekly with great body bearish could be observed, showing the clear power of the vendors on the current situation. Watching the price of Bitcoin just from the weekly chart, the way it seemed to totally clear up to the support at USD 7.750. Indeed, the objective bassist closest was reached. The bears took advantage of the situation of instability and fear in the markets to make a profit with the fall of the market crypto. In a previous analysis, also indicate the possibility to develop a Shoulder-Head-Shoulder-invested after that the price will reach this support. However, it is not the time to think that this will happen. We need to observe a lot of rejection in the area that is to think that the bears have lost strength. Although, for the time being, the control of the sellers is imminent. Technical analysis of Bitcoin from the weekly chart. The simple moving average of 18 weeks was compromised, the mild attempt to be respected sight of the day yesterday was not enough. The crossing sign bullish view in mid-January could be false if the negative expectation in the short-term continues. The SMA 200 weeks remains bullish, and far from the price, to support the solid uptrend that holds Bitcoin throughout its history. Moving averages on the weekly chart of the price of the Bitcoin. The RSI has turned again bearish, the current situation is achieved that the bullish signal a tendency of a thread to be deleted. RSI on the weekly chart of Bitcoin.
Technical analysis of Bitcoin from the temporality daily
The clear succession of peaks each time lower takes effect and the search for a new lowest minimum was successful. To violate the support at USD 8.450, the bearish trend seen in the time-frame daily was resumed. Technical analysis of Bitcoin from the daily chart. The moving averages also support the negative sentiment for the short-term. The break bassist of the SMA of 200 days now if is effective, then the candle yesterday closed with a great body beneath the same. The SMA 18 and EMA 8 if you were already bearish and had worked as resistors dynamics as long as the price flew back towards the UDS 9.150. Currently, the share price moved away considerably from both moving averages, indicating that a further decline could occur in the next few hours. Moving averages on the daily chart of Bitcoin vs. u.s. dollar. The RSI remains in bearish territory, due to its location below the level 50. RSI in the chart on the BTC – USD on temporary daily.
Price levels to watch
If the buyers manage to defend the support at USD 7,750, a might start a flashback. Otherwise, the next support to watch will be the USD 6.515, price which initiated the formation of a Shoulder Head Shoulder inverted to both positivism generated by the early 2020’s. Support and resistance lines to monitor. Technical analysis of the price of Bitcoin. In these moments, I do not consider that it is reasonable to try to short Bitcoin. The current situation of instability could continue to generate movements extremely volatile and the market crypto could be benefited at any time. But if we look at the intrinsic value that it could provide refuge in the midst of the chaos. Meanwhile, the rate of hash rate for Bitcoin reaches new highs, making it more safe and secure. However, the current price has caused the computers mining weaker are at a critical moment. Some even generating losses in the midst of the escalation of the difficulty of mining. Do you break these miners of their rewards in BTC, or will defend the price in the middle of the fall? Let us know your thoughts in the comments, we will be happy to read.