BTCUSD is struggling to stay up after the Black Monday bloodbath of March 9, 2020 where global markets suffered an apocalyptic crash following Saudi Arabia’s decision to flood the markets with crude and initiate a price war.
The crypto markets, which had earlier served as an alternative market for February’s price undoing in the stock market, were unable to receive any propulsion in Monday’s trading, as they also suffered steep drops in price. BTCUSD has seen its price action drop from above $9000 to below $8000, where it still struggles to stay afloat.
BTCUSD is presently trading at 7770.52 (as at the time of writing), and looks set to continue its struggles to stay north of $8,000. The daily candles of the last two days have closed lower than they opened. However, yesterday’s candle was able to achieve a penetration close below the 8000.90 support line. Today’s candle is presently bearish, and a close below the 8000.90 support by 10 pm GMT fulfils the time filter conditions for a breakdown of that price level.
The completion of the rising wedge pattern (which could also be seen as a bearish pennant if we consider previous price action from February 2020) opened the way for the price drop on the BTCUSD’s daily chart. However, the attainment of the present price levels marks the completion of the measured move from the breakdown of the technical pattern. Markets are therefore waiting to see if bears can extend this move even lower, which would require a breakdown of 8000.90.
A breakdown of the 8000.90 price support opens the door for a further drop in the price of BTCUSD, which could target 7420.20 (October 24, 2019 low) in the first instance and also has the potential to extend towards the 7068.5 23.6% Fibonacci price level (swing high of November 2017 to swing low of December 2018). Further support lies at 6596 and 5820.
On the flip side, price recovery as a result of a failed breakdown of 8000.90 opens the door for a possible recovery run towards 8550.12. The resistance located at 8874.49 also remains a potential target if the recovery run continues impressively beyond 8550.12.