Is a major dip on the cards for Bitcoin as a record $6bn of options expirations loom large today?
Crypto at a glance
It’s been another week of mixed fortunes in the crypto markets, though things do seem to be somewhat looking up as we head into the weekend.
Bitcoin yesterday tested support at $50,000 for the first time in two weeks, dipping to as low as $50,856.57 before rebounding back to over $53,000, where it’s currently changing hands.
Bitcoin still hasn’t traded below $50,000 since March 8. The last two weekends have seen the Bitcoin price push for new all-time highs, will we see another repeat this weekend?
The latest rebound means that Bitcoin’s market cap is once again back over $1 trillion. This important psychological landmark will be reassuring given that (Tesla news aside) the general news this week has been largely bearish for Bitcoin.
First, the US dollar has strengthened recently to new highs in foreign exchange markets, with Bitcoin still showing signs of being inversely correlated with the greenback.
Then there’s been the looming record $6 billion contract expiration, which is due today. Analysts have warned the ‘max pain’ point would occur if the price plunged to around $44,000. The max pain point is where buyers have the most to lose and sellers the most to gain and the thinking goes that the market will gravitate toward the pain point while heading into the expiry.
If the price holds though, it could drive another price run. Historically, April has been a bullish month for Bitcoin, posting a green candle in eight out of the last 10 years. Will history repeat itself this year?
Looking down the market, Ethereum and other larger caps still seem largely in lockstep with Bitcoin. It’s a sea of green over the last 24 hours, albeit mostly just recouping yesterday’s losses. Tether is back at third by market cap, leapfrogging Cardano (ADA) and Binance Coin (BnB). XRP also continues to show strength – could it force its way back into the conversation at the top of the table?
Theta also continues to look strong, holding its position in the top 10 for a third consecutive day. Can it hold?
Please note our new look ‘In the markets’ data chart below supplied by our friends at CryptoCompare. All feedback on Crypto AM Daily in association with Luno is welcome via email to [email protected] ??.
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In the markets
The Bitcoin economy
*Definitions and insights can be found at https://bytetree.com/insights/
Total crypto market cap
The total capitalisation of the entire cryptocurrency market at time of writing is $1,684,291,807,617, down from $1,639,413,732,517 at this time yesterday.
What Bitcoin did yesterday
We closed yesterday, March 25 2021, at a price of $51,704.16 – down from $52,774.26 the day before. It’s now 19 days in a row that the price has closed above $50,000.
The daily high yesterday was $53,392.39 and the daily low was $50,856.57.
This time last year, the price of Bitcoin closed the day at $6,681.06. In 2019, it closed at $3,963.07.
Bitcoin market capitalisation
Bitcoin’s market capitalisation is just above one trillion dollars at time of writing. To put that into context, the market cap of gold is $10.952 trillion and Alphabet (Google) is $1.374 trillion.
Bitcoin volume
The total total spot trading volume reported by all exchanges over the last 24 hours was $63,483,606,319 at time of writing, down from $77,598,575,761yesterday. High volumes can indicate that a significant price movement has stronger support and is more likely to be sustained.
Volatility
The price volatility of Bitcoin over the last 30 days is 62.79%.
Fear and Greed Index
Market sentiment is down to neutral at 54. That’s the lowest it’s been since 1 March.
Bitcoin’s market dominance
Bitcoin’s market dominance today is 61.16. Its lowest ever recorded dominance was 37.09 on January 8 2018.
Relative Strength Index (RSI)
The daily RSI is currently 50. 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 Nan: Soundbite of the day
“Shareholder value creation comes from holding an appreciating asset $BTC over a long period of time. It is logical for every firm (both public & private) in the #Bitcoin industry to do the same thing Tesla is doing. Corporate treasuries should #hodl bitcoin.”
– Michael Saylor, poet
What they said yesterday
Time flies…
Fair coverage?
Jack makes a statement…
? or ?
Crypto AM Editor writes
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March 31 to April 1 2021 – Dubai
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April 6 to 7 2021 – Tokyo
https://www.weforum.org/events/global-technology-governance-summit-2021
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. City PM, 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 08:30am GMT.