Bye Bye, $9,400: The Downward Spiral
Bitcoin (BTC) really knows how to throw a party, doesn’t it? Well, the party took a downturn as it closed the week at a shocking $8,024, marking a painful 9.92% drop. Just when we thought it couldn’t get crazier, we found ourselves at a weekly low of $7,675. Who invited this downturn?
Global Stock Market Meltdown: COVID-19 Causes Havoc
The economic fears surrounding the coronavirus have proven to be the more than just a bad mood; they’ve taken a chainsaw to the financial markets. The DOW futures took a nosedive of over 1,200 points (4.6%), the S&P 500 had a hangover with a 4.89% drop, and Brent Crude oil fell, wait for it — a staggering 30%! Saudi Arabia and Russia seem to be playing tug-of-war with oil production cuts, further adding to the global chaos.
Italy’s Restrictions: A Quarantine Drama
Meanwhile in Italy, it’s like a scene straight out of a dystopian movie as the government throws precautionary measures into full gear. With nearly 16 million people in lockdown, bars, schools, and sports competitions are effectively on hold. As of now, the death toll has risen to 366, as this is a tough week for Italy, and health officials are scrambling to contain the virus’s spread.
Unpacking the Head and Shoulders Pattern
In true dramatic fashion, analysts have been waving their hands, warning everyone about a possible drop below $9,400. Well, it seems they were right! This week’s rejection at $9,150 ignited the downward trend and formed a classic head and shoulders pattern. Oops! Cue the dramatic music!
Liquidation Central: The Fear Index Hits Extreme Levels
The crypto market isn’t a safe haven either — with roughly $92 million in leveraged positions getting liquidated and the Crypto Fear & Greed index plummeting to a gut-wrenching extreme fear rating of 17, the scene is set for some serious volatility. As Bitcoin trades around $7,850, it’s razor-thin margins moving forward; any slip and we could see $7,600 on the horizon.
Altcoins Join the Party: Even More Losses
If you thought Bitcoin was having a rough night, altcoins are catching the same flu. The top-20 altcoins faced their own calamities, as Ether (ETH) fell 13.67% to below $200, Bitcoin Cash (BCH) dropped 17.67%, and XRP lost 12.17% of its value. It’s a crypto apocalypse, folks! The overall market cap now stands at $223.5 billion, with Bitcoin’s dominance at 63.9%. Talk about a wild ride!
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