Bitcoin oversold as volatility hits markets, and why is Pyth surging?
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📉 Bitcoin dips 2% overnight - retesting $110K, while Ethereum drops 5% in 24 hours.
🏦 JP Morgan analysts remain bullish on Bitcoin - citing corporate treasuries, inflows, and lower volatility.
🔗 Chainlink and Pyth tapped by the US government - with PYTH up 70% overnight.
Volatility has returned as Bitcoin and other cryptocurrencies pulled back sharply to levels seen earlier in the week, following yesterday’s brief price flurry. The market cap leader is once again testing the $110,000 level, dipping more than 2% overnight, while Ethereum shed more of its monthly gains, falling over 5% in the past 24 hours. It’s a similar story across most crypto markets, with even deeper losses among mid-tier cryptocurrencies. Reflecting the sell-off, Bitcoin’s Relative Strength Index (RSI) slipped into oversold territory (below 30) after hovering between overbought and oversold for some time, often a signal of an imminent trend reversal.
Despite the volatility, JPMorgan analysts see more upside for Bitcoin toward the end of the year. They point to a combination of corporates adding Bitcoin to their treasuries, continued index inflows, and falling volatility as factors strengthening its investment case, according to The Block.
In other news, Chainlink (LINK) and Pyth Network (PYTH) have been selected as partners by the US government to make its data publicly available on blockchains. LINK is up more than 30% over 30 days, while PYTH has surged more than 70% overnight, bringing weekly and monthly gains to over 70%.
In the markets…
🌍 Total crypto market cap ↘️
The global crypto market cap is approximately $3.81 trillion, down 2.9% over the past 24 hours.
🟠 Bitcoin (BTC) ↘️
Price: $110,169 down 2.86% in the last 24 h.
Daily high: $113,259
Daily low: $110,056
📈 S&P 500 ↗️
SPY is currently up about 0.32% since yesterday’s close.
📈 Nasdaq 100 ↗️
The Nasdaq 100 is up about 0.58% overnight.
😐 Fear & Greed Index
The Crypto Fear & Greed Index stands at 47/100, in Neutral.
📊 Bitcoin Relative Strength Index (RSI) (14)
The 14-day RSI for BTC is approximately 29, dipping into oversold territory.
Data is correct as at 29 August, 08:18 GMT.
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.
