The Digital Commonwealth daily brief…

YESTERDAY’S call for caution over Bitcoin’s relative strength index manifested itself dramatically as red candles engulfed cryptocurrency markets.

The market leader took a fierce tumble of almost $5,000 after the RSI had strayed above 70 long enough to demonstrate Bitcoin had been over-bought. And, as is often the case, where Bitcoin travels at speed, others will follow in step.

And so it was. Ethereum dropped by a relatively modest 5%, steadying at $2,227, while many other tokens registered double-digit percentage declines.

Bitcoin itself is looking less rattled this morning, settling around $43,200 after finding a leg up from a clear support line at $42,900. More importantly, the RSI has returned to a manageable 65.

In the Markets

Total crypto market cap

🔻 $1.66 trillion

🔻1.5%

What Bitcoin did yesterday

🔺 Daily high $45,358

🔻 Daily low $40,625

Bitcoin market capitalisation

🟠 BTC $882.687 billion

🟡 Gold $13.93 trillion

Fear and Greed Index

Bitcoin’s market dominance

49.5%

Relative Strength Index (RSI)

65

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.