Bad news for Bitcoin bears
📈 Bitcoin hits new all-time high - Bitcoin has surged to around $118,000, continuing its rally and lifting the entire crypto market.
🔥 Altcoins join the party - Ethereum is up 6% overnight, while some altcoins have jumped more than 10%, showing broad-based market strength.
💥 Massive short squeeze fuels rally - Analysts point to a large short squeeze as a major driver behind the latest price spike.
Yesterday’s momentum in crypto markets has carried through to today, with Bitcoin posting sizeable gains and pushing its all-time high even higher, now standing around $118,000. You’d be hard-pressed to find a red candle in crypto markets this morning. Ethereum is up 6% overnight, while many others, mostly among the altcoins, have surged more than 10%. Cardano (ADA) is also among the top performers.
It’s "Greed" all the way, according to the Fear and Greed Index, while the Relative Strength Index (RSI) has jumped deep into overbought territory, often a harbinger of incoming volatility.
Analysts note that the current price rally is being driven by a massive short squeeze, in which bearish positions are forcibly closed to cover losses, further fueling price surges. What triggered the initial price rise that caused the liquidations? It's not entirely clear, but market watchers point to strong inflows into crypto ETFs and growing pressure on the Fed to lower interest rates sooner rather than later.
With expectations still in place for two rate cuts before the end of the year, the big question now is: what happens when the Fed finally resumes easing? Are markets front-running that outcome?
In the markets…
🌍 Total crypto market cap ↗️
The global crypto market cap is approximately $3.67 trillion, up 5.47% over the past 24 hours.
🟠 Bitcoin (BTC) ↗️
Price: $117,908, up 5.88% in the last 24 h
Daily high: $118,254
Daily low: $110,768
📈 S&P 500 ↗️
SPY is currently up about 0.27% since yesterday’s close.
😐 Fear & Greed Index
The Crypto Fear & Greed Index stands at 67/100, indicating a neutral sentiment among investors.
📊 Bitcoin Relative Strength Index (RSI) (14)
The 14-day RSI for BTC is approximately 70, well into being overbought.
Data is accurate as at 07:56 GMT, 11 July.
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.
