Bitcoin Price Analysis: The price of one Bitcoin is equal to 1,500 barrels of oil
- Bitcoin pushes over 1% lower on Monday after another lacklustre session.
- The price as broken below the wedge formation on the hourly chart.
BTC/USD 1-hour chart
Bitcoin has been pushing lower after breaking the wedge pattern marked in red on the hourly chart below. It seems that upside momentum has been capped recently despite the halving event coming up in May.
Even though the price has moved lower it could be worse. People usually associate volatility with cryptocurrencies but today oil traders have seen crypto-like moves in one of the worlds most traded commodities. In fact today you could buy 1,500 barrels of oil for the value of 1 bitcoin!
Getting back to the BTC chart below the next target for the bears could be the wave low of 6,920. If that level breaks then the next target on the downside might be the sext support zone at 6,748.20.
For the fortunes of the crypto major to change a break back in the pattern is needed and that would mean 7,100 would be retaken to the upside. The pair is far from that at the moment as the bearish signs are too dominant.
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Additional levels
Author
Rajan Dhall, MSTA
FX Daily
Rajan Dhall is an experienced market analyst, who has been trading professionally since 2007 managing various funds producing exceptional returns.
