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Why did bitcoin fall synchronously with oil and at what support levels will it stop?

Yesterday, March 9, the price of a barrel of oil lost 30% due to unsuccessful negotiations between Russia and OPEC to reduce oil production. The price dropped to $ 31, which is the level of 2017, and the price drop was almost the most significant for the entire period since the 1991 Gulf War.

Following the oil, quotes of Russian companies fell, foreign companies began to withdraw capital from the country, and even European and Asian indices sank in price by more than 5%. It was not possible to maintain the Bitcoin position – the cryptocurrency fell in price to $ 7800 per coin, and the cryptocurrency market capitalization decreased by 10%.

Some immediately began to proclaim the beginning of an economic crisis, or at least a protracted bearish trend in the market. Journalists managed to communicate with experts and find out their opinion on this matter.

Analyst Dmitry Gurkovsky of RoboForex believes that after the fall of volatile assets, investors went to “investment shelters” like gold, Swiss franc, dollar, and Yen. Unfortunately, expectations about the growth of the investment attractiveness of cryptocurrencies during the fall of the classical market were not confirmed.

Dmitry advises not to look for a Bitcoin pivot point in the near future, but to wait for a pivot in a large market. Indeed, only in April, companies will prepare quarterly reports by which it will be possible to determine losses due to coronavirus, oil and other factors.

The Bitcoin support level is currently at around $ 7800, but in case of breaking it will drop to $ 6700. Until this happens, the coin can survive a correction of up to $ 8450, but until the end of spring the level will range from $ 6400 to $ 10,400, Dmitry believes.

Expert Mark Huseynov admitted that he was surprised by such a drop in BTC, and if the coin drops below $ 7800, then the next level of support, after a while, will be $ 5300. As for oil, Mark is sure that the price will not fall below $ 27, as this is absurd (unlike Dmitry Gurkovsky, who allows prices to drop to $ 20 per barrel).

 

Gleb Kostarev, the representative of Binance, recalled the dependence of the cryptocurrency market on the global one, which always influences the first one. In such conditions, investors are forced to leave high-risk assets, which include cryptocurrencies. At the same time, some investors simply pulled out money to wait for drawdowns even lower and to buy cheaper.