Warning light suggests Bitcoin is overstretched, but the original crypto has cause for celebration

The Digital Commonwealth daily brief…

BITCOIN celebrates its 15th birthday today at an impressive $45,100.

And while many analysts are giving off an air of disappointment that the original cryptocurrency hasn’t blasted its way beyond $50k after coming to rest following a surge to the upside, it’s worth taking a moment to zoom out.

On this day last year, BTC blew the candles out on its 14th birthday cake almost $30,000 less than today’s price. On it’s 10th birthday, Bitcoin was barely touching $3,700.

So, yes, Bitcoin and its crypto cousins may have rested to recover from some strong gains this week as the market looks stagnant, but as well as dreaming about where it’s going, it can be a good exercise to see where it has come from.

Currently, the price of Bitcoin is on a decline this morning, dropping $300 in the last hour as it looks for a support foothold.

A warning light is flashing on the dashboard, though. Last night, Bitcoin’s relative strength index (RSI) touched 74, and currently sits at 70. 70 is considered the threshold figure for when a digital asset displays signs of being overbought.

A time for caution?

In the Markets

Total crypto market cap

🔻 $1.76 trillion

🔻1%

What Bitcoin did yesterday

🔺 Daily high $45,925

🔻 Daily low $44,643

Bitcoin market capitalisation

🟠 BTC $887.92 billion

🟡 Gold $13.928 trillion

Fear and Greed Index

Bitcoin’s market dominance

49.5%

Relative Strength Index (RSI)

70

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.