Bitcoin back over $40,000 as recovery continues
Crypto at a glance
The recovery in the crypto markets continues today, with Bitcoin again trading at more than $40,000. Can it overcome the resistance at $42,000 and push back to the $50,000 range where it seemed so comfortable before last week’s crash?
The leading cryptocurrency is currently up four per cent over the last day and breaking even over the week. Is the bull market back in business, or is this just a dead cat bounce?
It’s seemingly good news everywhere today, with Ethereum also looking up at $3,000 again. It’s currently trading hands at just above $2,800, up nine per cent over the last 24 hours and down just three per cent in the week, erasing many of the weekend’s losses.
However, it’s still got some way to go before hitting the recently made all-time high of over $4,000. Can the markets summon the enthusiasm to take it higher?
Ethereum’s volumes suggest there could well be support out there for further rises, rivalling that of Bitcoin’s for the first time. According to CoinDesk Research, volumes on major spot exchanges for Bitcoin on Monday were at $72,762,652,345, while Ether was at $72,479,251,812. Bitcoin’s market dominance is again slipping back down to around 40 per cent. Is alt season back in business?
It’s a similar story elsewhere, as other major currencies continue to build. Cardano (ADA), Binance Coin (BNB) and Polkadot (DOT) are all up around 10 per cent over the last 24 hours, while LINK and MATIC are the big gains, both up by more than 20 per cent.
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Total crypto market cap
The total capitalisation of the entire cryptocurrency market at time of writing is currently $1,769,042,632,368, up from $1,677,037,986,484 yesterday.
What Bitcoin did yesterday
We closed yesterday, May 25 2021, at a price of $38,402.22, up from $38,705.98,the day before.
The daily high yesterday was $39,776.35 and the daily low was $36,581.43.
This time last year, the price of bitcoin closed the day at $8,906.93. In 2019, it closed at $8,052.54.
Bitcoin market capitalisation
Bitcoin’s market capitalisation at time of writing is $756.891 billion, up from $729.31 billion yesterday. To put it into context, the market cap of gold is $12.11 trillion and Facebook is $929.43 billion.
Bitcoin volume
The total spot trading volume reported by all exchanges over the last 24 hours was $57,663,760,057, down from $65,573,145,691 yesterday. High volumes can indicate that a significant price movement has stronger support and is more likely to be sustained.
Volatility
The price volatility of Bitcoin over the last 30 days is 89.32%.
Fear and Greed Index
Market sentiment today remains at 22, still in Extreme Fear despite the apparent price recovery.
Bitcoin’s market dominance
Bitcoin’s market dominance today is 43.47, down from 44.38 yesterday. Its lowest ever recorded dominance was 37.09 on January 8 2018.
Relative Strength Index (RSI)
The daily RSI is currently 39.55, up from 35.66 yesterday. Values of 70 or above indicate that an asset is becoming overbought and may be primed for a trend reversal or experience a correction in price – an RSI reading of 30 or below indicates an oversold or undervalued condition.
Convince your Nan: Soundbite of the day
“Bitcoin is now considered an investable asset. It has its own idiosyncratic risk, partly because it’s still relatively new and going through an adoption phase. And it doesn’t behave as one would intuitively expect relative to other assets given the analogy to digital gold; to date, it’s tended to be more aligned with risk-on assets. But clients and beyond are largely treating it as a new asset class, which is notable—it’s not often that we get to witness the emergence of a new asset class.”
– Mathew McDermott, Goldman Sachs’ global head of digital assets
What they said yesterday
Float like a Bitcoin…
True…
Dedicated to the cause…
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Cautionary Notes
It’s definitely tempting to get swept up in the excitement, but please heed these words of caution: Do your own research, only invest what you can afford, and make good decisions. The indicators contained in this article will hopefully help in this. Remember though, the content of this article is for information purposes only and is not investment advice or any form of recommendation or invitation. Morning Wire, Crypto AM and Luno always advise you to obtain your own independent financial advice before investing or trading in cryptocurrency.
All information is correct as of 08:30am GMT.