Daily market update: Federal reserve to add Bitcoin as ‘reserve asset’?
Happy hump day! There was a small correction last night after Monday’s surge, though nothing like the flash crashes we’ve experienced after recent rises. Could we be entering a period of higher volatility, though? Here’s your daily update of all Bitcoin’s latest market movements – the price, volume, the fear and greed index, and more.
If you’re new to the world of crypto trading, take a look through our beginner’s guide to crypto trading series, starring in-depth explorations of common strategies, market analysis techniques, AND MORE.
The content of this article is for information purposes only and is not investment advice or any form of recommendation or invitation. Luno always advises you to obtain your own independent financial advice before investing or trading in cryptocurrency.
All information is correct as of 09:00 BST
We closed yesterday, 17 August 2020, at a price of $11,991.23 – with a daily high of $12,335.71 and a low of $11,954.53.
The closing price was down from $12,254.40 yesterday, though it was the highest low we’ve seen since 9 July 2019.
We’re still 39% below Bitcoin‘s all-time high of $20,089 (17 December 2017).
Bitcoin’s market capitalisation as of yesterday was $221,413,097,553. To put that into context, Jeff Bezos’s net worth is $188,500,000,000, which means he could only buy 85.1% of all Bitcoin. You can’t have everything, Jeff!
The volume traded yesterday was $26,043,227,672. That’s down from $28,227,687,027 yesterday.
To put that into context, the highest ever 24-hour volume is $53,060,690,000, last year’s high was $29,060,690,000, and last year’s average was $15,060,690,000.
Bitcoin’s market dominance
Bitcoin’s market dominance stands at 61.26, up from 60.91 yesterday. Its lowest recorded dominance was 37.09 on 8 January, 2018.
Fear and Greed Index
We’re still in Extreme Greed at 80 – down 2 points from yesterday. This is the longest period in the “Extreme Greed” zone ever registered. Although this indicator only dates back to February 2018 and we don’t have data for the wild periods of 2017, this level of greed is not very common.
Extreme fear can be a sign that investors are too worried, which could be a buying opportunity. When Investors are getting too greedy, that means the market may be due for a correction.
Relative Strength Index (RSI)
The daily RSI is currently 59.26. Values of 70 or above indicate that an asset is becoming overbought and may be primed for a trend reversal or experience correction in price. – an RSI reading of 30 or below indicates an oversold or undervalued condition.
Resistance and support
What they said yesterday…
Attention #Bitcoin newcomers, you don’t have to buy a full bitcoin, you can buy any fraction of a bitcoin that you want — even as little as 0.00000001 (called a “satoshi”) is possible. This is what Bitcoiners mean when they say they’re “stacking satoshis” or “stacking sats.”
— Tyler Winklevoss (@tylerwinklevoss) August 18, 2020
— Coindesk (@Woindesk) August 18, 2020
Another company converts their balance sheet capital to Bitcoin.
Gradually, then suddenly ? https://t.co/jVGbqrnDGX
— Pomp ? (@APompliano) August 19, 2020
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