Oil prices collapsed yesterday (20), but little of it was felt by BTC and the crypto market
Oil shocked the world by recording its biggest drop in history, coming to be traded for negative values in Canada. In an episode that begins to be called “the collapse of oil”, we were able to see the crypto market react very timidly to what happened.
Bitcoin, for example, fell below $ 7,000 while the commodity suffered its major downfall, but it is inaccurate to say that the reason really has to do with oil. Anyway, yesterday’s episode shook the market and heightened concerns about global economic instability.
As we mentioned above, BTC reacted timidly to yesterday’s event, dropping from a top at $ 7,105 yesterday afternoon to $ 6896 during the writing of this text. A $ 200 drop that keeps Bitcoin in a narrow price range.
A similar fact was seen at the end of 2019, when BTC, as well as now, was restricted in a short price space, varying slightly, until it managed to gain strength to rise and have a strong start to the year.
The main support to be defended by the bulls is at US $ 6600. A drop below that value could propel the asset to seek new funds. On the positive side, Bitcoin needs to fight to break through the resistance again at $ 7200-7300, which has already been holding BTC in recent weeks.
Bitcoin Cash (BCH)
Halving has definitely brought losses to Bitcoin Cash. Starting from a $ 281 top on April 8, BCH plummeted to a low of $ 206 in just one week. The main reason is linked to the sharp drop in the mining power of the asset.
With the reduction of the reward, most miners decided to migrate to other more profitable assets, such as Bitcoin, for example.
In the very short term, BCH is being traded within a side channel between $ 223 and $ 215.
Without an increase in volume, it is possible that further decline is in the way of the currency. The $ 200 psychological resistance should provide a solid barrier against bears, but the stop certainly needs to be in place.
To return to the positive side, BCH needs to consolidate above $ 250, which does not seem likely at this point.
XRP remains one of the worst assets of recent times, and certainly the worst in performance of the top 25 in the overall ranking of cryptocurrencies in market capitalization. Still, the currency has been on a strong recovery since the fall of March 12, when it hit the bottom at $ 0.11.
Since then the asset has recovered more than 60% of the losses, being traded for US $ 18.49 during the writing of this text.
In the short term, bulls need to defend support at $ 0.1820. A drop below that level could bring the XRP to $ 0.1780 and below. On the positive side, there is a resistance at $ 0.1880 that needs to be broken if the asset is to continue to rise.
* All graphics used in this analysis were generated by the platform TradingView. This text does not represent an indication of purchase or sale and is for educational purposes only. Invest smartly.