Bitcoin, Ethereum, Dogecoin Slide Amid Staking-Ban Rumors: Analyst Sees Apex Crypto Losing Love After Valentine's Day Inflation Report

Benzinga – 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 (CRYPTO: BTC), the largest cryptocurrency by market value, was trading below $23,000. Ethereum (CRYPTO: ETH) was changing hands at $1,654, down 1.87% in the last 24 hours. Dogecoin (CRYPTO: DOGE) 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 (NASDAQ: 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.

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

— Michaël van de Poppe (@CryptoMichNL) February 8, 2023

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

It does give me reason for concern as long as we are below those prices. https://t.co/Wv36C3SPwa

— Pentoshi