The Dogecoin rally continued, but Bitcoin and Ethereum traded lower Thursday night as the global cryptocurrency market cap fell 2.3% to $983.2 billion at 8:01 p.m. EDT.
Major Coin Price Performance Coin 24-Hour 7-Day Price Bitcoin BTC/USD -2.3% 6.5% $20,291.06 Ethereum ETH/USD -3.4% 18% $1,513 Dogecoin DOGE/USD 5.9% 29, 3% $0.08 Top 24-Hour Gainers (Data via CoinMarketCap) Cryptocurrency 24-Hour % Change (+/-) Price Klaytn (KLAY) 18.65% $0.25 TerraClassicUSD (USTC) 12.4% $0.04 Dogecoin (DOGE) 5.9% $0.08
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Why it matters: The two largest cryptocurrencies were seen in the red on a day dominated by macroeconomic and earnings data. The S&P 500 and Nasdaq closed lower on Thursday by 0.6% and 1.6% respectively.
A decline in technology stocks weighed on Nasdaq futures, which were down 0.9%, while S&P 500 futures fell 0.6% at the time of writing.
US gross domestic product rose 2.6% year-on-year in the third quarter, a number that is higher than the average economic estimate of 2.4%. In the previous quarter, GDP fell by 0.6%.
Initial jobless claims rose 3,000 for the week ending Oct. 22 to 217,000, from an unrealized 214,000 in the previous week, data from the U.S. Department of Labor showed on Thursday.
OANDA Senior Market Analyst Edward Moya said the data shows the “economy is weakening”.
“It looks like the economy is still headed for recession, but that could amplify the Fed’s pivot calls that still seem to be fueling some inflows into stocks,” Moya said.
“Bitcoin’s rally is exhausted. The momentum of the rally above the $20,000 level has stalled as risk appetite struggles to find solid footing after US earnings and economic data,” the analyst said in a note, viewed by Benzinga.
“Bitcoin appears likely to be consolidating ahead of the FOMC decision, but it could gain even more strength if the dollar continues to weaken. If Wall Street is more concerned about the economic outlook, rates could fall even further, which is great news for crypto.”
Among the more prominent cryptocurrencies, Dogecoin continued its upward march, bolstered by the impending Twitter buyout of Tesla Inc TSLA CEO Elon Musk. The memecoin is trading in an uptrend. It has a resistance of $0.083 and 0.099 and support of $0.075 and $0.067, according to Benzinga’s Melanie Schaffer.
Trading volume for DOGE rose 98% to $2.65 billion at press time, according to data from CoinMarketCap. Coinglass figures indicated that DOGE worth $16.47 million was liquidated in 24 hours.
On Ethereum, Michael van de Poppe said the second largest coin is experiencing resistance around the $1,600-$1,650 level. The cryptocurrency trader tweeted: “Maybe whether we will continue the rally, and we clearly need to break that resistance and then face $1,750. In the short term, I would like to have entries around $1,400-1,450.”
#Ethereum is still facing resistance around $1,600-1,650 here.
We may wonder if we will continue the rally, and it is clear that we need to break through that resistance and then face $1,750.
In the short term, I would like to have entries around $1,400-1,450. pic.twitter.com/6rT49WfoVb
— Michaël van de Poppe (@CryptoMichNL) October 27, 2022
The Amsterdam-based trader said Bitcoin is still within the resistance level as it declines around $20,800 and the long time frame also declines at $20,750.
#Bitcoin still has resistance here as it rejects around $20.8K and also rejects LTF at $20.75K.
I don’t favor longs for day trading here, I’m technically looking for the scenario given in the chart, which has an area around $19.9-20.2K. pic.twitter.com/BNPC4gAdGR
— Michaël van de Poppe (@CryptoMichNL) October 27, 2022
Justin Bennett tweeted about the dollar index, a measure of the dollar’s strength against six of its peers. The trader asked what if the dollar index “lower high and lower low that gets everyone excited is just the start of a bull flag with a measured target of 120.”
“This isn’t a trend I want to fight without a higher span of invalidity, which we don’t have,” Bennett said. Strikingly, the dollar index was 0.8% higher at 110.56 at the time of writing.
What if the $DXY lower high and lower low that everyone is getting excited about is just the beginning of a bull flag with a 120 metered target?
This isn’t a trend I want to fight without higher timeframe validation, which we don’t have. pic.twitter.com/FHvCkqShmx
— Justin Bennett (@JustinBennettFX) October 27, 2022
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