The collapse of today's stock market does not benefit the cryptocurrency sector, especially Bitcoin, which is falling precipitously with double-digit declines. These losses are very similar to those of the stock markets and extend over 10%. Among the top 100 this morning there were no positive signs.
The only one in positive territory that marks a little more than 1% is Leo (LEO), slightly above 99 cents. Among the big ones, there are only double digit decreases. The only one that stays better among the first 30 is Chainlink (LINK) that with a 6% drop is the one that loses less and maintains the eleventh position gained in recent days with the strong increases that have characterized its movement.
For the first time in its history, the cryptocurrency sector faces a global crisis. Bitcoin was born during the height of the previous financial crisis, on January 3, 2009. It will be particular to understand the evolution and behavior of cryptocurrencies and Bitcoin.
Bitcoin price drop
During yesterday, Bitcoin broke the trend line and the dynamic bullish support that until yesterday confirmed the upward trend for more than two months.
Therefore, it concludes that the trend began from the lows of last December and lasted three months, with a bearish extension that in the last hours will prove an important level of support, that of $ 7,800, which had given the first bullish momentum at the beginning of January. The increase that had won the price even more than 40% with highs since the beginning of the year on February 13, a few days before the highs of the stock market.
Given the current momentum for the cryptocurrency sector, at this moment BTC is not being confirmed as a safe haven tool, so much so that in the last hours the correlation with the gold with which it had had an almost speculative tendency has been totally lost since the end of December.
It will be interesting to understand the evolution of Bitcoin and cryptocurrencies in the coming weeks and assess whether BTC can be a safe haven as the narrative has claimed so far.
In the last 48 hours, Bitcoin volatility has exploded with a daily movement of around 350%. Such an intense movement has not been recorded since mid-December last year when prices reached their current low. Volatility coincides with the explosion of the US index VIX, which reached 62 points, the highest level not registered since December 2008.
For Bitcoin, it will be necessary to maintain the threshold of $ 7,800 or reach 7,500. In case of a downward extension below these levels, the increase built from mid-December to the top of February 13 would be canceled.
The positive performance of Bitcoin remains the same as that of gold, and both obtained around 9% since the beginning of the year, although it should be borne in mind that since the highs of two weeks ago BTC was + 40% since the beginning of the year.