After closely hugging $8,000 for three or four hours, Bitcoin finally lost the support of $8,000 just minutes ago, plunging as low as $7,900 as of the time of this article’s writing and per data from TradingView.
Per data from Skew.com, this latest leg lower, which is the fifth of its kind in the past day, has seen $20 million worth of BitMEX longs liquidated, meaning that over $200 million worth of such positions have been liquidated within the past 24 hours. Ouch.
This move comes as global markets have fallen off a cliff, so to say, with the futures of the S&P 500 and Dow Jones already down 5%, stopping at this level of loss because of limits. Oil is down 30%, falling as a price war begins between the world’s largest oil producers, including Saudi Arabia and Russia.
Gold, unsurprisingly, has rallied amidst this weakness in global equities and commodities, surmounting $1,700 for the first time in years. Though, Bitcoin has been falling, showing that there may be some flaws in the digital gold narrative.
What’s Next for Bitcoin?
Analysts are currently divided over where Bitcoin will head next. Right now, most seem to be expecting lower prices, though, namely because BTC is currently trading like a risk-on asset, meaning that it should continue to fall in tandem with the stock market and other leading assets.
Some, however, are expecting the asset to soon find support. Josh Rager, a prominent cryptocurrency trader, recently remarked that Bitcoin has a Point of Control and a level of horizontal support between $7,700 and $7,995, meaning that it could catch a bid in this region, adding that a bounce to a $8,550 could be had.
Also, just prior to this latest leg lower, CryptoHamster remarked that Bitcoin is looking extremely oversold, with a number of bullish divergences forming on the one-day chart with the Stochastic, MACD, MFI, EFL, Fisher, and other key indicators.
#Bitcoin is oversold.
Also, there is a high potential for bullish divergencies on a daily TF:
– Stoch. RSI
– Fisher Transform
– Klinger Oscillator
Let's wait for a daily candle close – 8000$ should hold, otherwise divergences are invalid.$BTC $BTCUSD pic.twitter.com/azXghbOBMI
— CryptoHamster (@CryptoHamsterIO) March 9, 2020
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