Market bounces back after last week’s lull – but can it be sustained?
Crypto at a glance
A challenging week for Bitcoin bled into the weekend, with the price falling to just $47,159.49 on Sunday – its lowest level since March 5. Yesterday marked the leading cryptocurrency’s first daily close below $50k since March 6, while market sentiment also fell to its lowest level for almost a year, hitting just 27 on the Fear and Greed index.
However, it seems any talk of a bear market may have been premature. Bitcoin came roaring back overnight, rising for the first time in six days to return almost immediately to just below $53,000, Did this weekend mark the bottom?
Signs are certainly looking good for a V-shaped recovery. Quantum Economics Founder, Mati Greenspan noted on Twitter that “The hashrate that we saw plunge last week has now recovered. Block times are back to normal and the mempool is currently being cleared. Fees will soon be normalized too”.
Real Vision Group founder, Raoul Pal, meanwhile, added more good news, Tweeting that: “The weekly RSI is close to the levels that we saw in corrections in the first part of the 2017 bull run, before Bitcoin hit hyperspace. These are the pauses that refresh a bull market.”
There’s a reassuring splash of green across the board today, with double digit gains for almost all major alts. Ethereum is up 12 per cent and trading just below $2,500 again. Despite last week’s losses, the second-largest cryptocurrency never dipped below that psychologically-important $2,000 level it spent so much of the beginning of the year fighting to break through. Binance Coin (BNB), Cardano (ADA) and XRP (XRP) have also gone some way to erasing the losses made over the past week, all rising more than 10 per cent.
The big climber in the alt markets continues to be Solana though, which has soared to an all-time high of almost $50 and looks set to crack the top 10. It’s now up more than 50 per cent in the last 7 days. Can it continue its run this week?
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Total crypto market cap
The total capitalisation of the entire cryptocurrency market at time of writing is currently $1,957,483,335,553.
What Bitcoin did yesterday
We closed yesterday, April 25 2021, at a price of $49,004.25 – down from $50,050.87 the day before.
The daily high yesterday was $50,506.02and the daily low was $47,159.49.
This time last year, the price of Bitcoin closed the day at $7,569.94. In 2019, it closed at $5,210.52.
Bitcoin market capitalisation
Bitcoin’s market capitalisation at time of writing is $982.71 billion. To put that into context, the market cap of gold is $11.298 trillion and Alphabet (Google) is $1.541 trillion.
Bitcoin volume
The total spot trading volume reported by all exchanges over the last 24 hours was $58,884,766,713. 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 46.01%.
Fear and Greed Index
Market sentiment has plummeted to Fear today and is currently at 27 – that’s the lowest it’s been since April 29 2020, a little under a year ago today.
Bitcoin’s market dominance
Bitcoin’s market dominance today is 51.35. Its lowest ever recorded dominance was 37.09 on January 8 2018.
Relative Strength Index (RSI)
The daily RSI is currently 41.28. 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
“There are many many different ways to look at bitcoin. The simplest way is just the supply and demand. Supply is growing 2% a year and demand is growing faster. That’s all you really need to know, and that means it’s going higher … I don’t think this is a bubble at all in bitcoin, I think this is now the beginning of a mainstreaming of it.“
– Founder and chief investment officer of Miller Value Partners, Bill Miller
What they said yesterday
Things are going well then…
Elon knows how to get the market excited…
What bear market?
Touching tribute to a great man…
Crypto AM Editor writes
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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.