Bloody Monday: Bitcoin Price Loses $8K, Oil -30%, DOW Futures Plunge

Bitcoin (BTC) airtight the week at $8,024, a shocking 9.92% loss and a new weekly low not seen since January 13, when the asset traded for $seven,946. The sharp correction took place every bit DOW, S&P 500 and oil futures plummeted as investor fears over the economical impact of the coronavirus continue to intensify.

Crypto marketplace daily price chart. Source: Coin360

Coronavirus fears grip the global economy

Dow futures dropped more than 1,200 points (4.half-dozen%), South&P 500 futures savage 4.89% and Brent Crude fell 30%. The volatility in oil futures appears to exist driven by a growing disagreement between Kingdom of saudi arabia and Russia as the OPEC members fence whether or not cuts to crude oil production should increase as demand weakens across the globe.

Despite existence fully aware of Russia's disapproval, Saudi arabia is reported to have finalized plans to increment production and this is leading investors to fear that a price war is in the making.

On March 8, the Italian government also announced that it would extend quarantine-like weather to its northern region. This effectively means that near sixteen million people are now severely restricted in their movement as bars, schools, sports competitions and travel is close downwards. As Cointelegraph has reported, Italy has been especially hard hit past COVID-19 and to date 366 have died and more than than 7,000 have been diagnosed with the virus.

On the aforementioned mean solar day, France also banned all gatherings of more than ane,000 people in an effort to stem the spread of Coronavirus as 19 people have already died and more than i,126 have been infected.

Evidently, Bitcoin toll has not been spared the carnage inflicted upon equities markets and at the time of publishing the digital asset is plunging below $viii,000 to mark a new depression at $7,675.

Caput and Shoulders pattern complete

For weeks, analysts cautioned that a driblet below the crucial support at $nine,400 would lead to a strong downside move and the March 7 rejection at $9,150 catalyzed the start of the pullback, which has now completed the right shoulder of the caput and shoulders design on the daily time frame.

Surprisingly, the price sliced right through the 200-24-hour interval moving average, 128-MA, $8,400 support and key support at $viii,200.

BitMEX XBTUD Liquidations. Source: Skew.com

Information from Skew shows $92 1000000 in leveraged positions were liquidated and the Crypto Fear & Greed index shows a reading of farthermost fear (17), a low not seen since Dec. xviii, 2022.

Crypto Fear & Greed Alphabetize. Source: Alternative.me

Currently, Bitcoin trades near $7,850 and if the price fails to concur here a drop to $7,600 is expected. Below $7,600 the volume profile visible range (VPVR) shows a high volume node at $7,422 and Bitcoin's price history shows this zone functioning as support since November 23, 2022.

BTC USDT daily chart. Source: TradingView

Equally Bitcoin's price corrected, altcoins likewise suffered major losses. The majority of pinnacle-twenty altcoins followed suit, dropping by double digits. Ether (ETH) corrected 13.67% and pulled beneath $200, Bitcoin Cash (BCH) dropped 17.67%, and XRP lost 12.17% of its value.