The sentiment around Bitcoin remains in Extreme Greed as we head into another weekend, but will it last? The skeptics are starting to come out of the woodwork again as cryptocurrency re-enters mainstream media headlines, but the bulls are still riding high after news that S&P Dow Jones Indices — a joint venture between S&P Global, the CME Group and News Corp — will debut cryptocurrency indexes in 2021. Will it drive institutional investment as many believe it will?
As always, here’s your daily market update to help you on your way. If you’re new to the world of crypto, take a look through our beginner’s guide to crypto trading series to get a better idea of all these indicators, 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 08.30am GMT.
We closed yesterday, 3 December, 2020, at a price of $19,445.40 – up from $19,201.09 the day before.
The daily high yesterday was $19,566.19. The daily low, meanwhile, was $18,925.78. That’s the highest low since 17 December, 2017. This time last year, the price of bitcoin closed the day at $7,320.15 and in 2018 it was $3,894.13.
We’re 3.2% below bitcoin‘s all-time high on CoinMarketCap of $20,089 (17 December 2017).
As of today, buying bitcoin has been profitable for...
99.8% of all days since 2013-04-28.
The volume traded yesterday was $31,930,317,405, down from $37,387,697,139 the day before. High volumes can indicate that a significant price movement has stronger support and is more likely to be sustained.
Bitcoin’s market capitalisation as of yesterday was $360,933,936,017, up from $356,381,007,571 the day before. To put that into context, Jeff Bezos is currently worth a measly $187.8 billion. So Bitcoin could almost buy 2 Jeff Bezoses. Not that it would want to.
Fear and Greed Index
Sentiment is at 92 for a third day in a row, still up in Extreme Greed. The index has now been in Extreme Greed since 6 November. It’s important to note that the index doesn’t stay this high very often and a correction could be on the cards.
In/Out of the money
For any address with a balance of tokens, ITB identifies the average price (cost) at which those tokens were purchased and compares it with the current price. If the current price is higher than average cost, address is ‘In the Money’. If the current price is lower than the average cost, the address is ‘Out of the Money’.
Charts provided by IntoTheBlock.com
Annualised price volatility using 365 days.
Charts provided by IntoTheBlock.com
Bitcoin’s market dominance
Bitcoin's market dominance stands at 63.25. Its lowest recorded dominance was 37.09 on 8 January, 2018.
Relative Strength Index (RSI)
The daily RSI is currently 65.42. 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.
Resistance and support
What they said yesterday…
— Tyler Winklevoss (@tyler) December 3, 2020
Paul Tudor Jones today, "Bitcoin's $500 billion market cap is wrong in a world where equities have a $90 trillion and gold has $7 trillion"
— Blockfolio (@blockfolio) December 3, 2020
Apple is sitting on a 200 billion dollar melting ice cube of fiat and is dangerously underexposed to Bitcoin, @tim_cook.
— Jameson Lopp (@lopp) December 3, 2020
— ₿ Didi Taihuttu ₿ (@Diditaihuttu) December 3, 2020
What other data points would you like to see covered in our Daily Report? Let us know on Twitter.