Battle for $23,000 rumbles on as Bitcoin bulls rally for the charge while bears dig in
IT’S been an exciting week in the world of cryptocurrency with a fascinating collection of twists and turns that exploded out of the nothingness of sideways movement.
Looking back to last Friday all the charts appeared happy to sit out what was looking like a fairly drab January. Bitcoin was languishing below $21k, Ethereum looked tired out, and most other cryptocurrencies were moping about as if they were still nursing a hangover from new year’s eve.
This morning, Bitcoin is clearly coiling up at $22,950 with bulls steeling themselves for another assault on $23,000 while the bears look to reinforce their lines to beat back any attempt at taking what is shaping up to be a significant stronghold in this latest skirmish.
The upward movement we’ve seen this month began in mid January where it has since lifted from what some analysts may regard as fairly weak lines of resistance – $20,800 and $22,800. Those lines were briefly fought over, and soon gave way to momentum. The fortifications at $23,000, however, look much more robust.
Quite where we’ll be in another week is anyone’s guess, but it’s likely that volatility will be on the cards.
The daily chart reflects nothing of the tumultuous micro-narratives that have driven the price of Bitcoin over the last 24 hours. In fact, it’s registering a zero per cent movement.
Zoom out, though, and you’ll see just how far things have come.
The flagship cryptocurrency is 10 per cent to the good over seven days, and a remarkable 36 per cent up over a month.
What’s more, a glance over the trading activity reveals 98 per cent ‘buy’. Couple that with a 20 per cent drop in buying volume over the last 24 hours and there’s a potential signal that bulls are amassing for a weekend offensive.
Elsewhere, Ethereum continues to give off an air of disappointment at $1,575. Yet, for all the groaning about lack of daily and weekly movement, it’s still keeping pace with Bitcoin across the monthly chart with a tidy 30 per cent uplift.
Cardano, meanwhile, looks like it’ll be taking home the ‘star worker’ certificate at the end of the school week after managing a two per cent push over 24 hours, 12 per cent over the week, and an almighty 44 per cent for the month. It currently stands at $0.38.
Grab the popcorn, and maybe strap yourself in – this weekend bears all the hallmarks of a bumpy ride.
Yesterday’s Crypto AM Daily in association with Luno
In the markets
The Bitcoin economy
*Data can be found at https://terminal.bytetree.com/
Total crypto market cap
The total capitalisation of the entire cryptocurrency market this morning was $1,045 trillion.
What Bitcoin did yesterday
We closed yesterday, January 26, at a price of $23,032. The daily high yesterday was $23,237, and the daily low was $22,911.
Bitcoin market capitalisation
Bitcoin’s market capitalisation this morning was $443.923 billion. To put it into context, the market cap of gold is $12.707 trillion and Tesla is $506.09 billion.
The total spot trading volume reported by all exchanges over the last 24 hours was $25.635 billion. High volumes can indicate that a significant price movement has stronger support and is more likely to be sustained.
The price volatility of Bitcoin over the last 30 days is 36.16%.
Fear and Greed Index
Market sentiment today is 55, in Greed.
Bitcoin’s market dominance
Bitcoin’s market dominance today is 44.45. Its lowest ever recorded dominance was 37.09 on 1 January 2018.
Relative Strength Index (RSI)
The daily RSI is currently 79.24. 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 – an RSI reading of 30 or below indicates an oversold or undervalued condition.
Convince your fam: Soundbite of the day
“It took months to get this class approved, but we made it! Getting Bitcoin into the curriculum is important for the long game.”
Korok Ray, Professor of economics at Texas A&M
What they said yesterday
The Bitcoin network, still working despite it all…
Bitcoin’s real-world value…
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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. City AM, Crypto AM and Luno always advise you to obtain your own independent financial advice before investing or trading in cryptocurrency.
All information is correct as of 08:00 BST