Market rout continues as Bitcoin and Ethereum slump

BITCOIN has plunged 7.5% overnight amid an ongoing market rout. Analysts attribute the sell-off to investor fears surrounding the Mt Gox repayments and Germany's sale of billions of dollars worth of seized Bitcoin. Ethereum has seen a steeper decline, down more than 10%, with other cryptocurrencies experiencing even greater losses.

The Relative Strength Index (RSI) currently stands at 26, indicating an oversold position, as the threshold is 30. The Fear and Greed Index has firmly entered the 'Fear' territory.

The sudden drop in prices has also triggered a cascade of long position liquidations, further pressuring prices. While the market sentiment is generally negative, some observers note that similar corrections have occurred in previous market cycles.

In the Markets

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Total crypto market cap

$1.99 trillion (-8.3%)

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What Bitcoin did yesterday

Daily high $60,463 |  Daily low $56,812

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Bitcoin market capitalisation

$1.07 trillion (-8.3%)

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Bitcoin volume

$52.05 billion (+52%)

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CoinDesk Large Cap Select Index 

-8.26%

The CoinDesk Large Cap Select Index (DLCS) measures the market cap weighted performance of some of the largest cryptocurrencies and gives a general indication of the overall performance of the crypto market. 

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SP500

+0.51%

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Fear and Greed Index

38 (Neutral) 

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’s market dominance

55.17

The Bitcoin Market Dominance indicator measures the percentage of total cryptocurrency market capitalisation represented by Bitcoin at a given time.

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Bitcoin Relative Strength Index (RSI)

26

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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