Bitcoin Tumbles Over The Weekend As Oil Markets Collapse After OPEC Pricing War Begins

Bitcoin saw a 10% price decline over the past 24 hours of trading as it collapses beneath the $8,000 level. It rolled over a few days ago after climbing above $9,000 and went on to tumble amidst fears of a pricing war in oil between Saudi Arabia and Russia.

The two OPEC members had been at a meeting on Friday in which they could not agree to a deal regarding the production levels of oil barrels. In retaliation, Saudi Arabia slashed the cost of oil barrels to their Chinese partners by as much as $7 and stated that they would ramp up their production to 2 million barrels per day. 

This news caused Oil prices to plummet by over 30% and the global markets followed suit with the S&P 500 falling over 5% and the Dow Jones dropping by 1,200 points.

Bitcoin Price Analysis

BTC/USD – Daily CHART – SHORT TERM

Market Overview

Taking a look at the daily chart above, we can see that Bitcoin collapsed beneath a rising trend line over the weekend. After breaking beneath, it went on to drop beneath support at $8,500, $8,250, and $8,000.

The market continued to fall further lower until support was found at $7,750 which is provided by a downside 1.414 Fibonacci Extension level.

Short term prediction: BEARISH

The market prediction is now bearish for Bitcoin, especially after creating a fresh multi-month low recently.

If the sellers push lower, the first level of support lies at $7,750. Beneath this, support lies at $7,630 (.786 Fib Retracement), $7,500, $7,417 (downside 1.618 Fib Extension), and $7,265 (.886 Fib Retracement).

Key Levels

Support:$7,750, $7,630, $7,500, $7,417, $7,265, $7,100, $7,000.

Resistance: $8,000, $8,250, $8,461, $8,672, $8,979, $9,000, $9,100, $9,270, $9,506, $9,740, $9,975, $9,000, $9,270, $9,500.