Bitcoin, Ethereum Lose Key Levels, Dogecoin Drops: Analyst Says 'Be Careful Out There'

Bitcoin traded below the $19,000 mark on Wednesday evening as the global cryptocurrency market cap dropped 1.6% to $912.5 billion at 9:17 p.m. EDT.

See Also: Best Cryptocurrencies To Hedge Against Inflation

Why It Matters: Bitcoin and Ethereum were down intraday as stocks ended a two-day rally on Wednesday. The second-largest cryptocurrency traded below the psychologically important $1,300 mark At the time of writing S&P 500 and Nasdaq futures were down 0.6% and 1.1% respectively.

On Wednesday, Minneapolis Fed President Neel Kashkari said if progress was not seen in underlying inflation he doesn’t see the need to advocate a halt in interest rate hikes.

U.S. government bonds saw a sell-off on Wednesday with the benchmark 10-year Treasury yield climbing to its highest since mid-2008. The yield crossed the 4.1% mark as investors feared further rate hikes. At the time of writing the yield was 0.46% higher at 4.15% intraday, according to Trading Economics data.

The dollar index, a measure of the greenback’s strength against six of its peers, was up 0.08% at 113.07 at the time of writing.

OANDA Senior Market Analyst Edward Moya, said, “Cryptos remain grounded as a major move in yields is powering the strong dollar trade.”

“Bitcoin continues to hold the $19,000 level despite a solid move higher with yields.  Bitcoin resilience has been impressive, but will likely get tested over these next few weeks,” said Moya, in a note seen by Benzinga.

Justin Bennett warned his followers on Twitter that a lot of “key supports just broke” in the cryptocurrency market.

“Anticipating a move lower from here. Be careful out there,” said the cryptocurrency trader. Bennett said he’s observed a “decent amount” of BTC long liquidations around the $18,900 mark so that area could be taken out soon.

Ethereum whales have been piling up the coins, according to Santiment. The market intelligence platform tweeted that since Sept. 11 ETH “billionaire whale addresses” holding 1 million or more coins have collectively added 3.5 million more coins.

“This has increased their cumulative bags by +14%. There are currently 132 such addresses in existence,” said Santiment. 

Michaël van de Poppe said that the markets are “arriving into areas of longing (altcoins).”  The Amsterdam-based trader gave the example of Injective (INJ) to make his case.

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