Bitcoin, Dogecoin Rise, Ethereum Drops After Inflation Spike: Analyst Says Apex Crypto Technical Selling “Could Get Ugly” Below This Level

Bitcoin On Thursday evening, the total cryptocurrency market cap rose 0.2% to $923.3 billion as of 9:02 p.m. EDT.

Price performance of major coins
Piece of money 24 hours 7 days Price
Bitcoin BTC/USD 1.4% -3.2% $19,411.87
Ethereum ETH/USD -0.4% -5.2% $1,290.06
Dogecoin DOGE/USD 0.3% -6% $0.06

Top 24 hour gainers (data via CoinMarketCap)
Cryptocurrency % change over 24 hours (+/-) Price
TerraClassicUSD (USTC) +18.6% $0.05
Ethereum name service (ENS) +12.6% $19.43
Synthetix (SNX) +5.7% $2.19

See also: Best Cryptocurrency Brokers

Why is it important: Bitcoin traded higher, while the second largest coin – Ethereum – fell at the time of writing.

On Thursday, Bitcoin fell to 18,319.82, while Ethereum slipped to 1,209.28. At the time of writing, both coins have recovered 5.96% and 6.68% from their intraday lows respectively.

The centerpiece was in the green on a day when stocks ended higher despite higher inflation than analysts’ estimates. The S&P 500 and Nasdaq ended Thursday up 2.6% and 2.2%, respectively.

United States Department of Labor reported an 8.2% year-over-year increase in the Consumer Price Index, compared to an estimated increase of 8.1%.

“Fed tightening will remain aggressive at a 75 basis point pace in November and possibly December. Monetary policy is rapidly becoming restrictive and this will undoubtedly bring inflation down,” said Edouard Moyaa senior market analyst with OANDAin a note seen by Benzinga.

On Bitcoin, Moya said, “Bitcoin was getting dangerously close to summer lows but has now bounced back above the $19,000 level. Technical selling might get ugly for Bitcoin at the $17,500 break, but for now it looks like the consolidation pattern will continue to hold.

The analyst said inflation is “entrenched” in the US and Fed rate hikes “will deter appetite for risky assets, including Bitcoin.”

Michael van de Poppe said Bitcoin is facing “crucial resistance” even though it looks set to continue. The cryptocurrency trader does not expect a sharp break for the apex coin above the $19,300 and $19,500 levels in one go.

In a separate tweet, Van de Poppe said, “It’s been too long.”

Meanwhile, the dollar index, a measure of the greenback’s strength against a basket of six currencies, slipped on Thursday. The index fell 0.65% to 113.23, Reuters reported.

Justin Bennett pointed out that the dollar index is “still struggling” at its multi-year channel top.

“As mentioned earlier this week, now is not the best time to be bearish on [stocks] and [cryptocurrencies]“, said the trader.

Saniment said traders are “chasing short-term pumps” to recoup losses.

“Weak hands have given up on #crypto in 2022, and long-term traders are waiting [Bitcoin] to start receiving spotlights again. When [BTC] social dominance is high, prices are generally rising,” the market information platform said.

Read more : Senior Fed Official Sounds Alarm on Stablecoins: ‘Could Pose Financial Stability Risk’

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