Hangover kicks in following $100k Bitcoin party

BITCOIN hit an all-time high of $103,690 yesterday before retracing briefly to just above $92,000 as profit-taking swept through the market.

The flagship cryptocurrency managed to recover some of its losses, trading around $98,000 this morning. Elevated trading volumes highlight the intensity of yesterday’s activity, with traders relooking their positions in the wake of the volatile session.

Ethereum is holding steady, trading just below $4,000, while the broader market shows increasing divergence.

Algorand (ALGO) is among those in the negative, down 6%, while Uniswap has gained 5% overnight. Analysts caution that this level for Bitcoin could see heightened volatility and a tug-of-war between bullish optimism, especially among FOMO investors, and bearish profit-taking. Meanwhile, the Fear and Greed Index remains firmly in Greed territory.

In other news, all eyes are on today’s US jobs report, expected to provide fresh insights into the strength of the economy. Strong employment figures could dampen expectations for aggressive rate cuts next year, although markets widely anticipate one final rate reduction from the Fed before year-end.

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In the Markets

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Total crypto market cap

$3.61 trillion (-2.17%)

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What Bitcoin did yesterday

Daily high $103,608  |  Daily low $92,980

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Bitcoin market capitalisation

$1.95 trillion (-3.98%)

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Bitcoin 24-hour trading volume

$121.42 billion (-2.1%)

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SP500

-0.19%

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Fear and Greed Index

Extreme Greed

‍Source: Coinmarketcap

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) (14)

47.6

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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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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