Market update
Bitcoin broke through the $11,000 mark earlier this morning to record the best price since late November. At the time of writing it was up 6.33% on a week ago and trading at $11,200. Everything else increased substantially including Ethereum (8.4%), Ripple/XRP (12.6%), Bitcoin Cash (16.5%), Litecoin (7.35%) and Stellar (7.4%). Bitcoin SV increased by 20.4%.
Bitcoin has entered one of its regular nerve-testing periods of volatility. After dipping below $9800 earlier today, it recovered to $10,700 at the time of writing. It’s currently down 13.4 percent for the week and 22.1% for the month. While most of the top ten was in the green this morning, they’re all down significantly for the week. Ethereum (-18%), EOS (-20.5%), XRP (-13.7%), Bitcoin Cash (-16.1%), Litecoin (-18.5%) and Stellar (-14.7%). The Fear and Greed index is at 17, or ‘extreme fear’. At times like these it’s worth remembering that good traders don’t make emotional decisions and they stick to their plans.
The markets finally flipped the switch back to excitement this week. Bitcoin fell to five month lows mid week following the frosty reception given to Mark Zuckerberg and Facebook’s Libra cryptocurrency by Congress. But then it took off like a rocket, gaining 42% in hours for the biggest one day gain since 2011, (back when Bitcoin changed hands for $10 a pop). Profit takers moved in, but the Bitcoin price is still up 13.7% on seven days ago – around AUD13,700 at the time of writing. BCH, increased 14.5%, XRP was up 1.6%, while Ethereum was up 4.2%, LTC (5.9%), EOS (14.3%) and Stellar (2.2%). Twitter sentiment has hit its highest level in two months.
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After a steady decline this week, Bitcoin bottomed out around $11,500 yesterday before bargain hunters moved in and pushed the price back above $12,200 at the time of writing. It’s currently just 0.54% below its price a week ago. The entire top ten increased 3-7% in the past day, leaving Ethereum up 0.8% this week. XRP gained 7.2%, BCH (1.8%), LTC (2.7%) EOS (6.8%) and XLM (0.43%). The Fear and Greed Index over the last couple of weeks has been bouncing from 15 to 39 (‘fear’).