Bitcoin (BTC) closed the weekly candle at $ 8,024 – a shocking loss of 9.92% and is the lowest weekly level since February 13, when the asset was trading at $ 7,946. The sudden correction of BTC occurred when the Dow Jones (DOW), S&P 500 and Crude oil plummeted as investors were concerned about the negative impact of corona virus on economies.
Fear of corona virus restrains the global economy
DOW futures fell more than 1,200 points (4.6%), S&P 500 futures fell 4.89% and Brent crude oil fell 30%. The future volatility of crude oil seems to be fueled by growing tensions between Saudi Arabia and Russia as OPEC members debate whether or not to cut crude oil production due to the above demand. Global is weakening.
Despite being aware of Russia's refusal, Saudi Arabia has completed plans to increase production and this makes investors worried that a price war is taking place.
On March 8, the Italian government also announced it would extend quarantine measures to the northern part of the country. This means that nearly 16 million people are severely restricted when bars, schools, sports competitions and tourism are closed. As Toiyeubitcoin reported, Italy was brutally attacked by Covid-19 and so far 365 people have died and more than 7,000 people have been infected with the virus.
On the same day, France also introduced restrictive measures to prevent the spread of COVID-19 when it recorded 19 deaths and more than 1,126 people infected.
Clearly, the Bitcoin price has been unable to avoid the carnage in the stock market and at the time of writing, the king coin is falling below the $ 8,000 mark to mark a new low at $ 7,675.
Head and shoulders pattern is completed
For weeks, analysts have warned that a drop below the critical support at $ 9,400 will lead to a sharp price drop and a failure to the $ 9,150 resistance level on March 7. spark the start of the pullback – has now completed the right shoulder of the head and shoulders pattern on the daily chart.
Surprisingly, the price has cut right past the 200-day moving average, 128-MA, $ 8,400 and the key support at $ 8,200.
Skew data shows that $ 92 million worth of Long contracts have been liquidated on BitMEX and the Crypto Fear & Greed index recorded extreme fear (17) – the lowest level since December 18, 2019. .
Currently, Bitcoin trades near $ 7,850 and if the price fails to hold up here, BTC will fall further to $ 7,600. Below $ 7,600, the VPVR indicator shows a high volume node at $ 7,422 and Bitcoin price history shows the area has been acting as support since November 23, 2019.
When Bitcoin price adjusted, altcoins also suffered big losses. Most top altcoins plummeted in BTC. Ether (ETH) fell by 13.67% to recover below $ 200, Bitcoin Cash (BCH) lost 17.67% and XRP lost 12.17%.
The total market capitalization of cryptocurrencies is currently at $ 223.5 billion with Bitcoin's dominance rate reaching 63.9%.
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According to CoinTelegraph
Translated by ToiYeuBitcoin