Bitcoin Price Analysis: BTC/USD resilient in the face of dramatic oil collapse into the negative territory

Oil price collapse affects the cryptocurrency market in the least possible way.
BTC/USD needs to stay above $6,500 to retain positive bias.

Tanya Abrosimova Independent Analyst

While WTI crude oil futures went into negative territory in an unprecedented market crash, Bitcoin remained relatively stable. The first digital coin lost about 4.5% of its value in the recent 24 hours and retreated below $7,000 amid worsened sentiments on the global markets, but the general trend remains bullish.

The May WTI dropped 300% to -$40 per barrel, which is a historical event. It means that at a certain point the sellers of oil futures were ready to pay the buyers. However, the May contract expires today. Thus, the June WTI will become the next active contract, which is also down 19.5% from Friday's (April 17) close.

Maybe it's time for some self-reflection for those that say #Bitcoin is too volatile compared to other assets. Crude #oil, the world's most traded commodity, fell ~40% this morning and lost 85% YTD in 2020. Oil in Canada is trading at negative prices. The data speaks for itself! - @gaborgurbacs

The collapse reflects the fragile state of the global economy and a damaging outcome of the oil price war between Russian and OPEC launched in March.

Bitcoin remains stable

Despite the retreat below, BTC/USD is still in good shape at least as long as it stays above $6,600-$6,500 area, created by 23.6% Fibo retracement for the downside move from February 2020 high. This area stopped the decline at the beginning of April and may serve as a turning point if the sell-off from the current levels gains traction. However, if this support area gives way, the sell-off may be extended towards psychological $6,000 and weekly SMA200 at $5,700.

On the upside, a sustainable move above $7,000 is needed for the upside to gain traction. The psychological barrier is reinforced by weekly SMA100; however, once it is cleared, the upside may be extended towards the next resistance created by 38.2% Fibo retracement for the downside move from February 2020 high at $7,150.