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Bitcoin dropped below $ 8,000, is this the time to "Buy the Dip"?

The bitcoin price is trading at $ 8,000, once dropping to $ 7,728 after hitting a daily high of $ 8,149. The decline came shortly after New York Governor Andrew Cuomo announced that New York City suburbs would be isolated for at least two weeks to prevent the Corona virus.

Daily crypto price chart | Source: Coin360

Cuomo has also deployed the US National Guard to this area and all schools and public facilities will be closed. National Guards will help distribute food to isolated people in their homes. Cuomo described this situation as a matter of life and death.

Traditional market slightly increased again

Wall Street rebounded after the worst session in 12 years, while gold prices lost tens of dollars an ounce.

The DJIA opened the trading session on March 10 with an increase of 3.6%, equivalent to 873 points, to 24,724 points. S&P 500 and Nasdaq Composite also increased by 3.4% and 2.7%, respectively.

The market went up because investors expected the loosening policies of countries to reverse the risk of global recession. US President Donald Trump announced yesterday that he will discuss with the US Congress about a plan to support the economy under the impact of Covid-19, such as reducing income tax and supporting hourly payers. The Japanese government also announced a billion-dollar plan to help affected businesses.

On 9/3, the market had the worst session since the financial crisis. All three key indices were pushed close to the falling prices (down 20% from the nearest peak) when losing more than 7%. Wall Street investors panicked as the recession worsened, amid widespread epidemics and falling oil prices.

Even so, oil prices today rebounded, having lost up to 30% of the previous session because Saudi Arabia started the price war. Currently, each barrel of Brent oil traded around $ 37.2 a barrel, up 8%. WTI oil currently stands at 33.6 USD, up 8%.

Meanwhile, the world gold price kept going down tonight. Each ounce is turning around 1,651 USD, down 28 USD compared to the session 9/3.

Bitcoin resistance at $ 8,200

Despite the inverse head and shoulders pattern on the hourly time frame, many traders predict that the price will decline at the $ 8,200 resistance level, as evidenced by the high volume button above the volume display area.

In general, it seems that investors are still wary of jumping into the market due to the seriousness of the recent correction and it seems that previous important support will act as formidable resistance.

Currently, Bitcoin needs to recover the $ 8,000 to $ 8,150 range before traders are stalking to show an interest in digital assets, although there were some who opened Long positions yesterday when BTC dropped to $ 7,629.

4-hour BTC chart. Source: TradingView

The 4-hour time frame shows that long buyers at the support level of $ 7,735 and the moving average convergence divergence show that this line is trying to rise above the signal line and the chart bars have shortened, approaching to 0.

The relative strength index has also increased from the oversold zone and a massive increase in volume at $ 8,150 could see Bitcoin price rise to $ 8,500. In case $ 7,800 fails to hold support, there is basic support at $ 7,735, $ ​​7,500 and $ 7,375.

Weekly chart of BTC / USD | Source: TradingView

On March 1, trader Scott Melker tweeted the chart and explained that:

If the price goes to this red circle, I'm buying things that are not nailed down. I have discussed this area in Wolf Den for weeks. This will be a retest of the main descending resistance level as support and recovery of the golden pocket (or even 70.5 OTE).

Weekly chart of BTC USD. Source: TradingView

Melker reviewed the topic today, updating the chart to comment that:

I was told that I would buy a lot here and my order was filled overnight. This is the item I have been discussing for weeks – once regaining the yellow bag, 70.5% OTE and retesting the descending channel weekly. Will set a tight stop and let it perform.

As Bitcoin continues to recover from today's slight decline, many altcoins have rallied from overbought conditions. Tezos (XTZ) increased by 8.18%, NEM 6.53% and Stellar (XLM) increased by 4.59%.

The overall cryptocurrency market capitalization stands at $ 224.5 billion and Bitcoin Bitcoin dominance rate is 63.8%.

You can see the price of Bitcoin here.

Thạch Sanh

According to Cointelegraph

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