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

Zinger Key Points
  • Cryptocurrencies follow stocks higher on Thursday after inflation comes in hot for September.
  • Trader says Bitcoin 'crucial resistance,' with a break above $9,300 and $19,500 in one go improbable.
  • Faltering dollar could spell trouble for cryptocurrency bears points out another trader.

Bitcoin traded higher intraday on Thursday evening as the total cryptocurrency market cap rose 0.2% to $923.3 billion at 9:02 p.m. EDT.

Price Performance Of Major Coins
Coin 24-hour 7-day 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 24-Hour % Change (+/-) 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 It Matters: Bitcoin traded higher, while the second-largest coin — Ethereum — fell at the time of writing.

On Thursday, Bitcoin fell to as low as 18,319.82, while Ethereum slid to 1,209.28. At the time of writing, the two coins had recovered 5.96% and 6.68%, respectively, from their intraday lows.

The apex coin was in the green on a day when stocks ended higher despite inflation coming in hotter than analyst estimates. The S&P 500 and Nasdaq ended Thursday 2.6% and 2.2% higher, respectively.

The U.S. Labor Department reported an 8.2% year-over-year rise in the Consumer Price Index compared with an estimated increase of 8.1%.

“Fed tightening will remain aggressive at 75bp pace in November and possibly December. Monetary policy is quickly getting restrictive and that will undoubtedly send inflation lower,” said Edward Moya, a senior market analyst with OANDA, in a note seen by Benzinga.

On Bitcoin, Moya said, “Bitcoin was getting dangerously close to the summer lows but has now rebounded back above the $19,000 level. Technical selling could get ugly for Bitcoin on the break of $17,500, but for now, it seems the consolidation pattern will continue to hold.”

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

Michaël van de Poppe said Bitcoin faces “crucial resistance” even as it looks ready for continuation. The cryptocurrency trader doesn’t expect a clearcut break-out 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 time to long.”

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

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

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

Santiment said that traders are “chasing short-term pumps” to salvage losses.

“Weak hands dropped out of #crypto in 2022, & long-term traders are waiting for [Bitcoin] to begin receiving the spotlight again. When [BTC] social dominance is high, prices typically rise," said the market intelligence platform.

Read Next: Top Fed Official Sounds Alarm On Stablecoins: 'Could Pose A Risk To Financial Stability'

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