Bitcoin, Ethereum, Dogecoin Muffled After September Inflation Dampens Rate Cut Outlook: Analyst Warns Of ‘Downside Deviation’ If King Crypto Loses This Support Benzinga
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Bitcoin, Ethereum, Dogecoin Move Sideways As Inflation Data Dampens Aggressive Rate Cuts Hopes: Why This Analyst Duo Says It Is ‘Great Time’ To Pile Up On King Crypto Benzinga
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The world’s largest cryptocurrency Bitcoin had a phenomenal start to the year 2023 after a major crash last year. After registering its largest winning streak with 15 consecutive days of gains, Bitcoin has finally changed course.
It is for the second consecutive day that the BTC price had ended in the negative. As of press time, Bitcoin is trading at a price of $22,635 and a market cap of $446 billion.
If we see coherence here, the crypto market has been largely following the action on Wall street. On Tuesday, January 24, the US indices ended flat hinting at a close fight between the bears and bulls. Also, macro factors continue to hang over and all will depend basically on the Fed meeting next month.
Tony Sycamore, a market analyst at IG Australia Pty also noted that the disappointments with Microsoft’s future forecasts spilled over the crypto space being strongly correlated to technology stocks. Speaking to Bloomberg, Sycamore further added:
“With risk assets, it’s almost been like trying to hold a ball under water so far this year. The market is now having second thoughts about how much further to push them.”
The bigger question here remains is where shall Bitcoin move from here – $25,000 or $21,000? Other market analysts think that Bitcoin and the broader market seem to be in overbought conditions.
Can Bitcoin Sustain the Momentum?
We have seen that the recent Bitcoin price rally this month has come on the backdrop of strong whale buying activity. But with the recent price surge, the short-term holders’ profitability has skyrocketed to 98% and thus there’s every chance of profit booking in the near term.
It will be interesting to see whether BTC can take support of $21,000 on the downside or fall further from here onwards. On-chain data provider Glassnode reports:
The recent surge in #Bitcoin price action has resulted in an initial breakout above all three cost-basis for the first time since the 2018/19 bear market and the March 2020 Covid crisis. A sustained duration above these key psychological levels would be considered constructive.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Bitcoin BTC/USD and Ethereum ETH/USD maintained their nearly flat trend on Sunday evening on Christmas, as the global cryptocurrency market cap decreased 0.24% to $810.17 billion at 8:30 p.m. EST.
|
Coins
|
24-hours | Price (8:30 pm) |
|---|---|---|
| Bitcoin | -0.02% | $16,858 |
| Ethereum | -0.014% | $1.221 |
| Dogecoin | -1.91% | $0.07 |
What Happened: Dogecoin DOGE/USD — the bellwether meme coin — traded muted on Sunday, down 2.24% over 24 hours. Hopes for a “Santa Claus” rally faded as investors returned to selling off riskier assets.
U.S stocks ended higher on Friday, but not enough to avoid a weekly loss, due to increasing worries of a potential recession. The Dow Jones Industrial Average, S&P 500 Index, and Nasdaq Composite Index respectively closed up 0.5%, 0.6%, and 0.2%, but still finished lower for the week, according to Benzinga Pro. Financial markets will be closed for Christmas on Monday.
See More: Best Crypto Day Trading Strategies
Popular analyst Will Clemente’s assessment of Bitcoin’s volatility hitting an all-time low has drawn tremendous approval from fellow trader Shan Belew, who cites the accompanying chart to show how the cryptocurrency’s price has steadily declined, calling the image “beautiful.” Shan goes on to say that the current dip in prices presents an ideal opportunity to accumulate Bitcoin and capitalize on the promising trajectory of the market.
This festive season, trader Herkermer wants everyone to remain safe as the “Christmas Palindrome Block” is just around the corner, hinting that the market is falling from its current low.
Earlier last week, Peter Schiff kicked off a fierce debate on Bitcoin maximalist Michael Saylor adding BTC to MicroStrategy’s MSTR balance sheet. Schiff suggested this was a ‘Hail Mary’ move meant to prevent the company’s collapse. On the other hand, Bitcoin supporters countered that the decision of holding Bitcoin in a portfolio was sound.
Read Next: Amid Bitcoin’s 66% YTD Loss, Peter Schiff Has This Christmas Advice For ‘HODLers’
Dogecoin DOGE/USD traded 1.45% lower at $0.07 over 24 hours leading up to early Friday morning.
DOGE traded lower alongside larger coins as the global cryptocurrency market cap fell 1.7% to $1.15 trillion.
| Time-frame | % Change (+/-) |
|---|---|
| 24-hour | -1.45% |
| 24-hour against Bitcoin | 1.1% |
| 24-hour against Ethereum | -1.3% |
| 7-day | 17% |
| 30-day | 4.35% |
|
YTD performance
|
-58.9% |
See Also: Best USDC Interest Rates
The DOGE Factors
- DOGE was among the most-mentioned coins on Twitter at press time, according to Cointrendz. The three most discussed coins on the platform were Bitcoin, Ethereum, and XRP.
- The 24-hour trading volume for DOGE rose 16.4% to $519.44 million, according to data from CoinMarketCap.
- Coinglass data indicated that $1.53 million worth of DOGE was liquidated over 24 hours as the price of the meme coin declined.
- Dogecoin’s relative strength index was at 57.31 at press time, according to TradingView. An asset with RSI above 70 is said to be overbought; RSI below 30 denotes it is oversold.
Rally Fades, But Traders See Upside
The recent cryptocurrency rally spurred by the lower July inflation numbers began fading on Thursday evening but traders are hopeful of upward momentum continuing. Amsterdam-based cryptocurrency trader Michaël van de Poppe said the apex coin could touch the $30,000 mark next month, while the second-largest coin could touch the $2,500 level.
Crypto Still In 2021 Mode
DOGE co-creator Billy Markus said that cryptocurrencies are acting as if they were still in 2021. Notably, DOGE shot up a whopping 3559.5% in that year.
crypto acting like it’s 2021 still
— Shibetoshi Nakamoto (@BillyM2k) August 11, 2022
DOGE On The Web
Mishaboar, a DOGE-oriented Twitter handle, called upon graphics designers to assist DOGE developer Loladam who is working on a Simplified Payment Verification (SPV) wallet. The wallet is currently only functional via the terminal, according to Mishaboar.
If you are a graphics designer in love with #Dogecoin and Open Source, she is also in need of talent to help come up with a design proposition for the interface of the SPV wallet (which currently only works via Terminal).https://t.co/PyJU33kNQE
— Mishaboar (@mishaboar) August 10, 2022
SPV wallets aren’t resource-intensive and are considered a good match for devices such as smartphones.
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