Crypto markets lift as Bitcoin holders weigh up 'break-out or fake-out' movement

BITCOIN posted a solid 2% gain overnight, briefly nudging $66,494 - the highest level seen since the end of September - before holding ground above $65,700.

The price spike saw the Fear and Greed Index shift back into 'Greed', reflecting a surge in positive sentiment, with technical momentum indicators also signalling strong buy opportunities.

Ethereum followed suit, rising more than 3% overnight, continuing its trend upward as the second-largest cryptocurrency by market cap. Bitcoin Cash led the pack with an impressive 12% gain, while Fantom and Maker enjoyed similarly strong performances over the last 24 hours.

Despite this upward momentum, some market analysts are cautious. The $66,000 mark has proven a tricky resistance level in recent weeks, with several fake breakouts failing to prove sustainable beyond this point.

A fake breakout occurs when an asset briefly moves above a key resistance level, only to reverse course shortly afterward. The coming days could determine if Bitcoin is primed for new highs or if this is just another temporary rally.

In the Markets

Total crypto market cap

$2.28 trillion (+1.95%)

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What Bitcoin did yesterday

Daily high $66,476 |  Daily low $62,463

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Bitcoin market capitalisation

$1.3 trillion (58.09% of market)

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Bitcoin 24-hour trading volume

$40.6 billion (+62%)

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SP500

+0.7%

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Fear and Greed Index

 (Fear) 

The Fear and Greed Index measures volatility, market momentum/ volume, social media, surveys, dominance, and Google search trends to gauge market sentiment.

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Bitcoin Relative Strength Index (RSI)

58

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, while 30 or below indicates an oversold or undervalued condition.

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Post Script…

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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. The Digital Commonwealth always advises you to obtain your own independent financial advice before investing or trading in cryptocurrency.

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