By Ifaenyi Egede (Nigeria)
Oil and BTC Price Correlation?
One of the most crucial developments of the last twenty years is the increasing decline in the price of crude oil. The 4H chart, a chart that shows the level of world oil, has shown that WTI Crude oil (USOIL) is at its lowest level in level in two decades, with the price still predicted by analysts to make a downward trend. Analysts have predicted that the price per barrel of crude oil may go as low as $10, but even that would take time. It should be noted that the short term effect of the downward trend of crude oil prices has always resulted in immediate upside effects. Bitcoin and other major digital assets have been noted as one that would feel the heat the most before the price declines fully.
With the volatility in the crypto market not going anytime soon, anything should be expected, including price shifts as a result of pressure from crude oil on the market. S&P 500 has announced that they are getting ready to fall short term after their retracement level returning at 61.8%, and they confirmed that the retracement level might still undergo another test. This development might give bitcoin enough chance to make a massive surge towards $8,000-$9,000 marks to fill the S&P 500 gap. Reportedly, most of the U.S population that got the $1,200 Coronavirus palliative invested them in bitcoin, giving the leading digital asset more reason to make the $8,000 surge in the coming days. Investors are panicking presently with experts telling them there is so much at stake in the market, so they should consider splitting their investments or looking into other ventures.
Even though the market is not expected to make a surge, a downward trend is not likely to happen soon too. According to crypto experts, investors and traders should be patient before rushing into the market at any bullish or bearish impulse so as not to make a loss in the long run.
The market may react on a downward trend after the decline in the price of crude oil, but things are expected to return to normal very fast after that in the short term. With the Coronavirus pandemic affecting the global economy, the demand for crude oil is likely to fall in the long term with the EUR/USD predicted to decline. Even with the market trading at a very high volatile stage and anything is expected to happen, better days might be ahead with analysts predicting some decisive days.
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