Bitcoin falls on old China FUD, while XRP continues to buck trend
Crypto at a glance
The crypto markets are down again today, with the total market capitalisation falling below $2 trillion for the first time since April. Is there further to fall, or is it time to buy the dip?
Bitcoin leads the plunge again, falling just below $40,000 this morning for the first time since February. It’s since recovered to just below $41,000, but can resistance at this level hold?
It’s worth noting that Bitcoin was at $37,000 when Tesla first announced they were to start accepting the leading cryptocurrency as a payment method. Is this a level to watch out for?
The market seems to be gripped by fear at the moment, with a lot of old FUD doing the rounds. Even rumours about China banning crypto for the 100th time are re-emerging – something that they actually already did back in 2017. The Crypto Fear and Greed Index, a metric that measures the current sentiment in the Bitcoin market, reflects this, having fallen to “extreme fear” levels not seen since April 2020.
These are often considered by some to be buying opportunities, with crypto research leader Arcane noting in a report that: “In the past, an extremely fearful market like this has historically presented solid buying opportunities during bull cycles.” Will they be proved correct?
It’s a sea of red everywhere today, with Ethereum also dropping 14 per cent to below $3,000. Only Polgyon (MATIC) is bucking the trend at the moment, up 12 per cent over the last 24 hours. Ripple (XRP) is also holding relatively steady at around $1.50.
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Total crypto market cap
The total capitalisation of the entire cryptocurrency market at time of writing is currently $1,827,193,544,520, down from $2,114,266,791,289 yesterday.
What Bitcoin did yesterday
We closed yesterday, May 18 2021, at a price of $42,909.40, down from $43,537.51 the day before.
The daily high yesterday was $45,812.46 and the daily low was $42,367.83.
This time last year, the price of Bitcoin closed the day at $9,726.57. In 2019, it closed at $7,271.21.
Bitcoin market capitalisation
Bitcoin’s market capitalisation at time of writing is $751.97 billion, down from $843.75 billion yesterday. That puts it below Facebook again. To put it into context, the market cap of gold is $11.89 trillion and Alphabet (Google) is $1.533 trillion.
Bitcoin volume
The total spot trading volume reported by all exchanges over the last 24 hours was $69,763,283,844, up from $64,747,766,359 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 63.43%.
Fear and Greed Index
Market sentiment today is at 23, up from 21 yesterday .
Bitcoin’s market dominance
Bitcoin’s market dominance today is 41.11, up from 40.70 yesterday. Its lowest ever recorded dominance was 37.09 on January 8 2018.
Relative Strength Index (RSI)
The daily RSI is currently 24.33, down from 32.49 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
“Think about Morgan Stanley … just trained 4,000 financial advisers to sell bitcoin. We’re going to have these armies of newly anointed proselytizers.
– Mike Novogratz, CEO of Galaxy Investment Partners
What they said yesterday
Saylor keeps sailing…
Deflategate 2.0…
Hungary for Bitcoin…
Crypto AM Editor writes
Bitcoin gets the jitters as Elon Musk’s curious meddling continues…
Dogecoin inventor takes a swipe at “self absorbed” Musk…
Ethereum yet to take off and is on track for $5,200 soon say experts…
Ethereum punches through $3,000 with market cap bigger than Bank of America…
Ethereum closing in on $3,000 as Bitcoin eases off the throttle…
Cardano teams up with Save the Children for humanitarian initiative….
HMRC were not clamping down on crypto…
Binance jumps on the NFT market…
Ethiopia overhauls its educational system with IOHK blockchain partnership…
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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.