The fall in oil prices is now affecting the stock market, which makes crypto investors worried about the future of Bitcoin price. The cryptocurrency market is now in a lull after the retreat from last week’s highs. Most cryptocurrencies barely manage to stay in green territory, especially the first three: Bitcoin, Ethereum and Ripple.
Total market capitalization dropped to $ 198 billion. The decline clearly shows that sales pressure has been significant for the last 48 hours, especially for Bitcoin. The main digital coin fell from the high $ 7,300 to the bottom at $ 6,767. Total trading volume also dropped from $ 186 billion to $ 114 billion (reported in the last 24 hours).
BTC/USD stays stable at $ 6,900 when oil and stocks collapse
The US oil market has suffered the biggest blow in its history after prices falling to negative territory on Monday. The downturn also had an effect on the stock market. And this is a situation that is worrying for Bitcoin and other crypto enthusiasts because of the recently found correlation between the price of BTC and stocks movements. Yet, amidst the chaos in traditional markets, the price of Bitcoin has remained relatively stable.
As for the technical picture, a positive development is the pattern of higher lows and the increasing volume of purchases of the 4-hour chart. If Bitcoin manages to stay above the $ 6,900 level, then the price may go above the average line of Bollinger Bands near $ 7,000. However, a clear breakthrough and a daily close above $ 7,300 (April 18 peak) will be needed, so the bulls can clear the way to the $ 8,000 price level.
If the $ 6,900 level fails to affirm as support, then Bitcoin bears can take control of the price. A clear break below the bottom of this morning at $ 6,826.2 will bring BTC to retest at $ 6,767.
Tezos runs crypto recovery, but for how long?
Any discussion of the current price action of the cryptocurrency market should also include some references for Chainlink (LINK) and Tezos (XTZ) presentation.
Both coins have had some of the most volatile and massive flows in the last twelve months. After the Black Thursday collapse on March 12, Chainlink jumped 156% and Tezos made a recovery of 152%. In the last 24 hours, Tezos has also managed to grow the most among the top 15 cryptocurrencies.
The question now is, will XTZ be able to lead the other Altcoins upside?
On the 4-hour chart, XTZ/USD has been moving in the upside price channel since March 13. It seems that the $ 2.00 psychological level is proving to be a tough nut for the bears and the price has risen again. The 55-day SMA is also located in that area, where Tezos found support in the latest downturn.
Looking at the technical indicators, the RSI went back above the midline 50 with bullish momentum. But at the moment, the upside channel with an upper border at $ 2,532 and a bottom line localized at $ 1,991 is the key. A clear break in either direction can give us clues about the future price action of the pair. Falling below the channel could take the bears to test $ 1,834 (low of April 16). On the other hand, a break above the upper limit can push the bulls towards the important resistance of $ 3.
Author: Silviya Velcheva
* The views expressed in this material do not constitute a recommendation or advice for the purchase or sale of cryptocurrencies in the digital assets market or other financial instruments. The predicted forecasts meet the expectations of the author of the material and may not materialize. Trading in currencies, contracts for differences on margin or cryptocurrencies poses a high risk and may not be suitable for all investors. Past results are not a guarantee of future success.