Bitcoin, Ethereum, Dogecoin Rise: Analyst Warns 'Ugly' Bond Market Selloff Could Pull Apex Crypto Down To $21.5K

Zinger Key Points
  • Apex cryptocurrency Bitcoin was trading above $23,000.
  • U.S. equities ended the trading week on a sour note.
  • Santiment's data suggests BTC and ETH are seeing more traders sell at a loss than at a profit this week.

Major coins traded in the green on Sunday evening, as traders looked ahead to U.S. consumer confidence index data due later in the fresh trading week.

Cryptocurrency Gains (+/-) Price
Bitcoin +1.52% $23,474
Ethereum +2.64% $1,634
Dogecoin +1.26% $0.081

What Happened: Apex cryptocurrency Bitcoin BTC/USD was trading above $23,000. Ethereum ETH/USD was trading at less than $1,700. Dogecoin DOGE/USD was trading at $0.081, up 1.26% in the last 24 hours. 

At the time of writing, the global cryptocurrency market capitalization stood at $1.07 trillion, up 1.68% in the last 24 hours.

U.S. equities ended the week on a sour note as the latest inflation report showed a higher-than-expected increase for last month. This sparked worries among investors that the Federal Reserve may be forced to raise interest rates more aggressively. As a result, the S&P 500 and the Nasdaq Composite closed down 1.05% and 1.69%, respectively, on Friday.

See More: Best Crypto Day Trading Strategies

The International Monetary Fund took a strong stance on adopting cryptocurrencies, issuing recommendations for member countries and calling for a “coordinated response”. It warned that the increasing popularity of cryptocurrencies poses a threat to the effectiveness of global monetary policy and urged countries to take action to regulate them. 

Former FTX Chief Sam Bankman-Fried asked a court for additional time until March 3 to find a technology expert to educate the court on VPN usage and to file a proposal for new bail conditions. 

Analyst Notes: “Risk aversion is running wild on Wall Street ... The bond market selloff is getting ugly and that could support downward pressure for Bitcoin to the lower boundaries of its $21,500 to $25,000 trading range,” said Edward Moya, a senior analyst at OANDA, in a note seen by Benzinga.

Crypto analyst Michaël van de Poppe said the total crypto market capitalization still offers a clear picture of potential near-term activity. He noted that we’ve seen a retest of all-time highs in 2017 as well as a double-bottom retest. 

He said that we’re seeing a weekly bullish divergence for the first time ever, with crypto “breaking above its 200-week moving average and holding support. One more week of consolidation before up, likely.”

Santiment's data suggests that Bitcoin and Ethereum are both having more traders sell at a loss than at a profit this week, the first such week so far in 2023. “Historically, once the crowd is exiting their positions more frequently at a loss, bottoms are more likely to form,” the analytics platform said.

Analyst Justin Bennett believes that BTC's current $23,000 price point is a "pivotal" moment in the market. If it loses out $22,600, it is highly likely that Bitcoin will trend toward $20,000, liquidating longs at approximately $20,800. “The only question is, do we get a retest of $23,800 first?”

Market News and Data brought to you by Benzinga APIs
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