Bitcoin Price Analysis: After $1600 Plunge In 48 Hours, Those Are The Next Possible Targets For BTC

The economic situation is starting to feel well the coronavirus effects. As of writing these lines, Crude Oil plunges 30% to a 3-decade low. NASDAQ futures are forecasting another 5% plunge, while London crashes 7%.

What started yesterday as the PlusToken Ponzi’s sell-off, continued today to a massive collapse. The question is whether Bitcoin is a real safe-haven asset, just like Gold? So far, Bitcoin fails the test, following another $1000 plunge since our price analysis from yesterday.

The April 2019 Trend-Line

As can be seen on the following daily chart, Bitcoin found temp support at $7600, upon reaching the mid-term ascending trend-line, which started forming in April 2019. $7600 was also an old CME Futures open price gap: well, now it’s finally filled.

From there, Bitcoin quickly corrected to where it’s trading as of writing these lines, around the $7900 level, which is the new support turned resistance level.

As mentioned above, $7600 was a crucial level, being a long-term support. However, keeping in mind the fragile situation around the world, we can expect further volatility to both sides.

In case of Bitcoin breaking down the $7600, and we are likely to see a quick retest of the next support at $7400 (weak) and then $7200, which is the Golden Fibonacci retracement level from the 2019 June Bull-Run.

Below lies and $7000 and $6800, which is the 2020 low from January 3rd. Further below lies $6400 – $6500, which is the double bottom from November – December of 2019.

Total Market Cap: $227 billion

Bitcoin Market Cap: $145 billion

BTC Dominance Index: 63.6%

*Data by CoinGecko

Key Levels To Watch & Next Possible Targets

– Support/Resistance levels: The possible targets from below are stated above. In case of a correction, then the first level of resistance is the current level at $7900 – $8000. This is followed by the support line that was broken yesterday at $8300. Further above is $8500.

– The RSI Indicator: The RSI broke down violently, just like the price. As of writing these lines, the indicator is almost touching its low from December 2019. As stated here yesterday: “The fact that the RSI couldn’t get over 50 is a red flag for the Bulls.”

– Trading volume: As expected, yesterday’s volume level was the second-highest volume day year-to-date. The bears are here.