Sharp pullbacks with Bitcoin in price discovery after all-time highs

BITCOIN remains in price discovery mode after last week’s rally brought it close to the $100,000 milestone. 

However, the market leader hit a wall of resistance near this psychological level, triggering the expected wave of volatility. 

The Fear and Greed Index has spent weeks in 'Extreme Greed', often a precursor to turbulence, and the market has lived up to that reputation.

Analysts are divided on the next move. Some foresee continued upward momentum, suggesting the current volatility could be an accumulation phase while short-term investors lock in profits. 

Yesterday’s trading volumes were substantial, reflecting heightened activity and interest on exchanges.

Ethereum has been less reactive, holding steady over the past 24 hours despite bitcoin’s fluctuations. In other markets, The Sandbox (SAND) retraced most of its earlier gains, while others also saw sharp pullbacks. 

With Bitcoin now facing a pivotal moment, traders are watching closely: will it retest the $90,000 support level, or will the profit-taking phase clear the way for another attempt at $100,000? The coming days are set to test the market's resilience.

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In the Markets

🌦️The Data... 

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Total crypto market cap

$3.23 trillion (-3.59%)

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What Bitcoin did yesterday

Daily high $94,978  |  Daily low $92,827

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Bitcoin market capitalisation

$1.86 trillion (57.45% of market)

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Bitcoin 24-hour trading volume

$84.6 billion (+53.4%)

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SP500

+0.3

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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)

36

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.

Post Script…

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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