Bitcoin crashes with the rest of the market

Many people claimed that cryptocurrencies would be the new safe-haven asset. As we can see, they could not be farther from the truth. 

The value of Bitcoin crashes 40% yesterday (from 8,000 USD to 4,800 USD), and it also fell another 20% during the Asian session before recovering quickly. At the time of writing, it was trading 10% stronger at around 5,300 USD during the London session on Friday.

It looks like the significant resistance now stands at previous lows of 6,450 USD, and as long as Bitcoin remains below this level, the medium and long-term outlooks look bearish. From the intraday perspective, the short-term resistance now seems to be at today's highs of 5,670 USD. If the price breaks above this resistance, we could see a rally toward 6,450 USD.

On the other hand, the support might be at the psychological level of 5,000 USD, and if not held, bears might continue on their rampage, with the next target at today's lows of 4,000 USD.

Volatility continues to be extreme in the financial markets, and bitcoin is no exception; thus, be especially careful when trading during these times.

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