BTCUSD loses steam | Dow Jones, S&P 500 indecisive after OPEC announcement

Sabyasaachi Karmakar -

Stock markets around the world are in a roller-coaster ride. Dow Jones, the Nikkei Index or India’s Nifty 50 Index are having episodes of abrupt declines and sudden rises in a single trading day.

BTCUSD recovered from its lows of $8,900. However, it is again in a consolidation phase. Investors are cautious, but analysts predict Bitcoin could gain momentum if the US Federal Reserve comes up with another fiscal stimulus.

Impact of OPEC announcement on Dow Jones (DJX) and BTCUSD

Crude Oil prices had turned negative for the first time in history. It happened just a month back. The demand for Crude was negligible as nations were under lockdowns, and the supply was excessive.

It forced the Organisation of Petroleum Exporting Countries or OPEC to come to a consensus to cut down Crude production.

Today the OPEC announced that the demand for Oil throughout the world would fall to 6.4 Million Barrels per day (BPD) from 11.5 million BPD. They said even though most nations have lifted the lockdown, the demand would remain subdued.

Now, if the demand for Crude falls or remains low, it is bound to hurt the economy of the Oil producing nations. However, several industries stand to benefit from the lower price of Crude.

These are:

  • Airlines and cruise companies
  • Paint Industry
  • Rubber Industry

BTCUSD stands to gain from a decline in the Dow and S&P 500. Bitcoin, which uninfluenced by the price of Crude or the lockdown impositions, would undoubtedly appreciate.

BTCUSD technical analysis

Published on: TradingView.com

Bitcoin’s short term outlook looks bleak based on the technical indicators. It was in a range-bound movement earlier. Here is the BTCUSD four-hour timeframe.

However, BTCUSD now faces several vital barriers. It is trading below the 50-period and 200-period Simple Moving Averages. They will act as dynamic resistance levels.

Most of the other moving average indicators also paint a Bearish picture for Bitcoin both in the immediate as well as medium-term.

MACD looks weak; it might have a Bearish crossover soon.

If Bitcoin manages to rise above $9,500, it will act as a new support level!