Pneumonia, Oil Price Collapse, Stock Market Downturn: Bitcoin Plunges Below Eight Thousand, How Do Prominent Twitter Analysts View It?

The "production cut" issue is not as simple in the real economy. Due to the decrease in oil demand caused by the COVID-19 outbreak, the Organization of the Petroleum Exporting Countries (OPEC) hoped that non-member Russia would cooperate in reducing production to prevent a collapse in oil prices. However, on March 7th, news broke that Russia had refused to comply, prompting OPEC to lift production cut restrictions altogether. This move is expected to trigger a price war, leading to a significant crash in oil prices and making global stock markets look bleak.

"Production cut" is not as simple in the physical economy. Due to the decrease in demand for oil caused by the Wuhan coronavirus, the Organization of the Petroleum Exporting Countries (OPEC) hopes that non-member Russia will cooperate in cutting production to prevent oil prices from collapsing. Unexpectedly, after Russia's rejection on March 7, OPEC decided to lift the production cut restrictions, leading to an anticipated price war and a significant drop in crude oil prices, making global stock markets bleak.

The Bitcoin, originally thought to be a "safe-haven asset," did not perform as expected. Starting from March 8, it slid from the $9,000 level and dropped below $8,000. Despite various speculations, no valid reasons emerged; in any case, it seems that large-scale liquidation activities in the futures market have begun.

As for how analysts on Twitter view this plunge and predict the future, what are their sentiments? Here are insights from influential figures in the crypto industry on recent market fluctuations, whether they are bearish or bullish:

PlanB

• Twitter followers: 71K, focused on market analysis
• Inventor of the Bitcoin price prediction model "Stock-to-Flow"

Despite the significant Bitcoin decline within 48 hours, renowned analyst PlanB still mentioned on Twitter that the drop on today (9th) did not change anything, and Bitcoin's trend still aligns with the S2F (Stock-to-Flow) price model.

Additionally, PlanB noted that the Bitcoin mining difficulty would adjust today by an estimated 7.6% increase. He emphasized that despite the upcoming halving of block rewards, Bitcoin's hashrate shows no signs of weakness.

Tone Vays

• Twitter followers: 197K, cryptocurrency market analysis
• Former Wall Street analyst, ex-Vice President at J.P. Morgan

Although Tone Vays is a Bitcoin enthusiast, he previously mentioned in his Blog that Bitcoin's price in 2020 would not reach historical highs. Most of the time, it would stay below $10,000 and might approach the $10,000 mark by the end of the year before entering a bull market.

Consistent with his blog, Tone Vays also mentioned on Twitter that the annual low could be around $5,000, and Bitcoin has never dropped below the weekly chart's 200-day moving average (MA), which coincidentally aligns around $5,000.

Joe007 {I identify as Deep Blue whale}

• Twitter followers: 22K, mysterious cryptocurrency trader
• Top earner on Bitfinex leaderboard

The mysterious trader Joe007 has been bearish on Bitcoin in recent weeks. On Twitter, he pointed out:

Is this our last chance to see Bitcoin below $9,000? Should we buy quickly before it's too late, right? Then why is trading volume decreasing instead of increasing? Where are our fearless "slapmasters"?

https://twitter.com/J0E007/status/1235138289755185152

In addition to continuously bearish sentiments on Bitcoin, Joe007 has also mentioned Binance CEO Changpeng Zhao's previous remarks on Twitter:

Slap yourself,

if you sold $BTC under $10,000.

— CZ 🔶 Binance (@cz_binance) August 1, 2019

And the "slapmasters" Joe007 referred to might be subtly criticizing CZ's statements.

Jacob Canfield

• Twitter followers: 59K, market technical analysis in cryptocurrency, stocks, and other markets
• Analyst featured in news media CNBC, Forbes

Jacob Canfield mentioned on Twitter that given the current downward trend in the market, Ethereum (ETH) might likely drop below $200. Ethereum briefly touched $195 today, reaching $204 at the time of writing.

Further Reading

• Fed rate cuts did not drive prices up, deeming Bitcoin as a safe-haven asset premature
• "Jack's Trading Room" BTCUSD mid-term shows a bearish pattern again