Bitcoin Falls But Analyst Sees $23K-Level Hang As 'Good News'

Major cryptocurrencies dipped on Sunday evening, as the market capitalization fell 2% to $1.07 trillion, recorded at 8:30 p.m. EST.

Cryptocurrency Gains (+/-) Price
Bitcoin -1.41% $22,996.85
Ethereum -1.94% $1,634
Dogecoin -2.61% $0.092

What Happened: The largest cryptocurrency by market value, Bitcoin BTC/USD, dipped below $23,000. Ethereum ETH/USD was changing hands at $1,634, down 1.94% in the last 24 hours. Dogecoin DOGE/USD was down 2.61% in the last 24 hours, pushing its price up to $0.092. 

U.S. equities finished lower on Friday. The S&P 500, declined by 1.04% and the tech-heavy Nasdaq Composite dropped by 1.59%.

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Investors are wary of possible signs of stubbornly high inflation reigniting, thus prompting a more aggressive interest rate response from the Federal Reserve.

Analyst Notes: “It is rather shocking to see how little crypto is moving considering all the volatility across fixed income, stocks, FX and commodities. An impressive jobs report is driving rate hike calls and pouring cold water on those rate-cut bets for the end of the year. Bitcoin seems content hanging around the $23,000 level and that should be viewed as good news for crypto traders. With yields likely to continue to rise, Bitcoin might struggle taking out $25,000 level over the short-term,” said Edward Moya, senior analyst at OANDA, in a note seen by Benzinga.

Analyst Michaël van de Poppe said Bitcoin is “back in the range” and a drop beneath $21,700  could be the ultimate liquidity sweep. The ideal entry point would be in the range of $22,300 to $22,700, while a break of $23,300 would signal a continuation upwards. He added that these corrections have been relatively shallow.

Analyst TechDev shares with his 406,000 Twitter followers that he believes Bitcoin’s price movements follow global cycles of dollar liquidity. He furthers this claim with a chart that compares Chinese ten-year bonds (CN10Y) and the US dollar index (DXY). 

“When liquidity flows, Bitcoin moves. CN10Y/DXY broke above its one-year moving average… And its monthly MACD has crossed bullish. Five out of the last five times, a major BTC impulse followed. What happens this time?”

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