Major coins traded flat on Wednesday evening, as the crypto market capitalization dropped by 1.50% in the last 24 hours to $1.08 trillion.
What Happened: Bitcoin BTC/USD, the largest cryptocurrency by market value, was trading below $23,000. Ethereum ETH/USD was changing hands at $1,654, down 1.87% in the last 24 hours. Dogecoin DOGE/USD was down 2.17% in the last 24 hours at $0.092.
U.S. equities fell on Wednesday as investors turned cautious on comments from Federal Reserve that interest rates would have to rise to combat inflation. The S&P 500 Index ended 1.1%, and the Nasdaq Composite Index shed 1.7%.
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Rumors surfaced about the Securities and Exchange Commission getting “rid” of cryptocurrency staking in the United States for retail customers. Coinbase Global Inc COIN CEO Brian Armstrong expressed concern, saying that he believes this would be a “terrible path for the U.S. if that was allowed to happen.”
Analyst Notes: “Bitcoin’s strong start to the year appears to be over for now. After hitting some key technical resistance just above the $24,000 level, Bitcoin is entering consolidation modes until we see the next big move in bond yields. Bond market volatility will be insane after the Valentine’s Day inflation report, which might mean Bitcoin could drift towards the $20,000 level if stocks get hammered over the next few sessions,” said Edward Moya, senior analyst at OANDA, in a note seen by Benzinga.
Crypto analyst Michaël van de Poppe has identified a key resistance level for Bitcoin that has been rejected. According to the analysts, “we are likely to re-test the range low again.”
Van de Poppe believes there is a high likelihood that the current level will be swept in order to take liquidity, but this could create a great opportunity to buy in. Such a sweep is likely to be short-lived, he said.
Crucial resistance for #Bitcoin rejects, which means that we'll test range low again.— Michaël van de Poppe (@CryptoMichNL) February 8, 2023
Seems likely that we'll sweep the lows to take liquidity, but probably that sweep will be a tremendous opportunity for buys and relatively short-lived. pic.twitter.com/w0BXaLZT1U
Crypto analyst Pentoshi said he was disappointed to see no follow-through on Bitcoin and Ethereum this morning, despite reaching key price levels of $23,300 and $1,680, respectively. The inability to close a 4-hour candle above “does give me [a] reason for concern as long as we are below those prices.”
A little disappointed to see no follow thru on $BTC and $ETH this morning at those key levels and the inability to close a 4hr above. imo should've had follow through— Pentoshi 🐧 (@Pentosh1) February 8, 2023
It does give me reason for concern as long as we are below those prices. https://t.co/Wv36C3SPwa
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