Bitcoin, Ethereum, Dogecoin Spike: Analyst Warns Apex Crypto Could Fall Back to $20,000 if Tech Selloff Spikes
Major coins traded in the green on Wednesday as global market capitalization rose 4.10% to $1.060 billion as of 8:30 p.m. EST.
What happened: The largest cryptocurrency by market value, Bitcoin BTC/USD, rebounded from a late Tuesday slump to trade above of $23,000. Ethereum ETH/USD rose more than 5% to $1,623. Dogecoin DOGE/USD is up 4.58% in the last 24 hours, trading at $0.086.
U.S. Stocks had a choppy trading session on Wednesday as the Nasdaq Composite, S&P 500 and Dow Jones Industrial Average edged down a few percentage points. Investors were seen weighing the latest set of fourth quarter reports, including from iconic companies such as Boeing and Microsoft. Meanwhile, many other stocks drifted sideways as the day progressed, leaving traders on the lookout for the next shift in sentiment.
Learn more: Best Crypto Day Trading Strategies
Electric car maker Tesla TSLA revealed in its latest earnings report that it neither bought nor sold Bitcoin in the fourth quarter for the second consecutive quarter. The value of its digital assets was $184 million at the end of the quarter, down from $218 million at the end of the third quarter, due to impairment charges caused by the lower price of the apex piece. At the end of the third quarter, the price of bitcoin was below $20,000, while it was around $16,500 at the end of the fourth quarter.
"Bitcoin continues to trade in a roughly $1,000 range between $22,300 and $23,300 and is down just over 1% to present in the day Under these circumstances we are seeing decent resilience, with sentiment elsewhere turning more negative Also considering the gains that preceded it, the longer it can hold them, the more confident the crypto community will feel in its sustainability and will be tempted to return. Of course, it all depends on the headlines, which have been less of a headwind recently,” said Edward Moya, senior market analyst at OANDA, in a note seen by Benzinga.
Moya added, "Bitcoin is lower as a broader sell-off on Wall Street has caused many traders to enter risk-reduction mode. January's stock market rally is perhaps be over and that could push the crypto down here.Bitcoin could be vulnerable to a drop towards the $20,000 level if the sell-off on tech-focused Wall Street intensifies over the next couple of days.
Crypto analyst Michaël van de Poppe said he would be interested in buying Bitcoin at two levels: $23,093 which he calls "crucial breakout resistance and $21,410.
Kaleo, a pseudonymous analyst, said he had never been so bullish on Bitcoin in his life. The analyst believes that the current rally is about to rapidly accelerate and the price will hit the $40,000-$45,000 range within a few weeks. However, Kaleo does not expect a new all-time high (ATH). Instead, he predicts consolidation in the same range for a few months before the price moves back towards the mid $20,000s later this year. “Truly believe we are [due] for a huge divine candle in the near future,” the analyst added.
Read more: UK financial services chief plans 'fast, sensible and balanced' crypto regulation
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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Major coins traded in the green on Wednesday as global market capitalization rose 4.10% to $1.060 billion as of 8:30 p.m. EST.
What happened: The largest cryptocurrency by market value, Bitcoin BTC/USD, rebounded from a late Tuesday slump to trade above of $23,000. Ethereum ETH/USD rose more than 5% to $1,623. Dogecoin DOGE/USD is up 4.58% in the last 24 hours, trading at $0.086.
U.S. Stocks had a choppy trading session on Wednesday as the Nasdaq Composite, S&P 500 and Dow Jones Industrial Average edged down a few percentage points. Investors were seen weighing the latest set of fourth quarter reports, including from iconic companies such as Boeing and Microsoft. Meanwhile, many other stocks drifted sideways as the day progressed, leaving traders on the lookout for the next shift in sentiment.
Learn more: Best Crypto Day Trading Strategies
Electric car maker Tesla TSLA revealed in its latest earnings report that it neither bought nor sold Bitcoin in the fourth quarter for the second consecutive quarter. The value of its digital assets was $184 million at the end of the quarter, down from $218 million at the end of the third quarter, due to impairment charges caused by the lower price of the apex piece. At the end of the third quarter, the price of bitcoin was below $20,000, while it was around $16,500 at the end of the fourth quarter.
"Bitcoin continues to trade in a roughly $1,000 range between $22,300 and $23,300 and is down just over 1% to present in the day Under these circumstances we are seeing decent resilience, with sentiment elsewhere turning more negative Also considering the gains that preceded it, the longer it can hold them, the more confident the crypto community will feel in its sustainability and will be tempted to return. Of course, it all depends on the headlines, which have been less of a headwind recently,” said Edward Moya, senior market analyst at OANDA, in a note seen by Benzinga.
Moya added, "Bitcoin is lower as a broader sell-off on Wall Street has caused many traders to enter risk-reduction mode. January's stock market rally is perhaps be over and that could push the crypto down here.Bitcoin could be vulnerable to a drop towards the $20,000 level if the sell-off on tech-focused Wall Street intensifies over the next couple of days.
Crypto analyst Michaël van de Poppe said he would be interested in buying Bitcoin at two levels: $23,093 which he calls "crucial breakout resistance and $21,410.
Kaleo, a pseudonymous analyst, said he had never been so bullish on Bitcoin in his life. The analyst believes that the current rally is about to rapidly accelerate and the price will hit the $40,000-$45,000 range within a few weeks. However, Kaleo does not expect a new all-time high (ATH). Instead, he predicts consolidation in the same range for a few months before the price moves back towards the mid $20,000s later this year. “Truly believe we are [due] for a huge divine candle in the near future,” the analyst added.
Read more: UK financial services chief plans 'fast, sensible and balanced' crypto regulation
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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