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June 26, 2022
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Guide & Analysis

With yesterday’s $ 1000 drop, can the March crash repeat itself?

Bitcoin summary on June 11, 2020.

Yesterday (11) the price of Bitcoin reached almost $ 10,000, and just a few hours later, the price dropped to almost $ 9,000 ($ 9078 on Bitstamp).

In our past price analysis reports from the past few days, we anticipate a major change. This is from yesterday’s analysis:

“Bitcoin’s symmetrical medium-term triangle is coming to a head and a decision will be made soon.”

As Bitcoin failed to exceed $ 10,000 on the sixth attempt since May 7, and along with that came a collapse in global markets – with the main Wall Street indices dropping 5-6% on average on Thursday – the panic also arrived at Bitcoin.

Wall Street has not seen daily declines of more than 3% since March 2020. After the day with the most new cases of COVID-19 since June 10, 2020, is the world starting to see a second wave of the pandemic?

Correlation with the global market?

Since the beginning of the coronavirus pandemic we are debating whether Bitcoin is a store of value, the thesis weakened on March 12 when BTC plunged along with the global market, however, a few days later Bitcoin bulls were happy to see it separate from global markets.

However, after yesterday’s severe collapse, Bitcoin behaved exactly like the S&P 500 and NASDAQ. It will be interesting to see if this type of correlation will continue.

Unlike Bitcoin, Gold held steady and did not fall yesterday as the market collapsed.

btc = orange / sp500 = blue / gold = yellow

Technical analysis

As can be seen in the daily chart below, once the symmetrical triangle broke around $ 9650, the bears arrived and the cryptocurrency dropped to $ 9000.

At the time of writing, Bitcoin is trading for around $ 9400 with support for the resistance level. In the event of a break, the $ 9500 – $ 9600 is the first resistance level, including the blue downward trend line on the 4-hour chart below. This is followed by $ 9800 and the downward trend line of the triangle (marked in blue on the 1-day chart above).

Below, in the event of a $ 9400 break, the next level of support is around $ 9200 (the 50-day moving average line is $ 9170) and $ 9,000, which was the minimum of yesterday, followed by $ 8800.

The RSI has lost the critical area of ​​50 and has now found temporary support in zone 46. Turnover has been huge – the highest levels since 2 June.

Total market capitalization: $ 268 billion

Bitcoin market capitalization: $ 174 billion

BTC dominance index: 64.8%

Source: CryptoPotato

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