Mayhem in oil markets translates to modest fallout for Bitcoin, with analysts eyeing slightly lower levels for key long trades.
Bitcoin (BTC) was testing support at $6,800 on April 21 as resistance and low volume combined to drive prices lower.
Cryptocurrency market daily overview. Source: Coin360
BTC price: analyst eyes $6,300 for low entry
Data from Coin360 and Cointelegraph Markets showed BTC/USD testing $6,800 three times in 24 hours, each time failing to spark a wider rout and returning above that level.
The pair had lost $7,000 earlier on Monday, amid resistance from two key moving averages and historic mayhem on oil markets.
As WTI continues to trade in negative figures, Bitcoin analysts were keen to determine the extent of future impact on their markets.
“Not looking for longs until we’re flipping the weekly open,” Cointelegraph Markets’ Michaël van de Poppe told followers on Tuesday.
“Might even get to $7,000 in which I’ll look for shorts there. Long areas? $6,600 / $6,300.”
Bitcoin 1-day price chart. Source: Coin360
What BTC volatility?
After United States oil prices dramatically crashed below zero into negative territory on Monday, a rebound failed to curb overall losses.
WTI traded at -$8 at press time, meaning that producers were effectively paying buyers to take their oil as storage capacity dried up.
Should the situation with storage continue to deteriorate despite the paradoxical price point, other oil markets could end up nosediving too.
“If global storage worsens more quickly, Brent could chase WTI down to the bottom,” the Financial Times quoted analysts at Citibank as saying.
WTI crude 10-year chart showing 2020 crash. Source: Macrotrends
For entrepreneur and Gemini exchange co-founder Cameron Winklevoss, meanwhile, the oil seesawing was a grimly ironic vindication for Bitcoin versus traditional markets.
He summarized on Twitter:
“‘The problem with bitcoin is that it’s too volatile…’ -Wall Street.”
