Major coins were trading in the red on Tuesday night, as the cryptocurrency market cap fell 2.21% over the past 24 hours to $1.10 trillion.
What happened: The largest cryptocurrency by market capitalization, Bitcoin (CRYPTO: BTC), traded below $25,000. Ethereum (CRYPTO: ETH) changed hands at $1,654, down 2.82%. Dogecoin (CRYPTO: DOGE) was trading at $0.085, down 2.93% in the last 24 hours.
US stocks fell on Tuesday as higher interest rates and weak retail sales weighed on market sentiment. The S&P 500 fell 2.00%, marking its worst day since Dec. 15, with all sectors ending lower. The technology-heavy Nasdaq Composite fell 2.50 percent.
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Coin base (NASDAQ:COIN) highlighted regulatory compliance and its leadership position in the US digital asset industry as a beneficial strength in its Q4 2022 earnings report.
“While the SEC moves to expand its jurisdiction, other agencies appear to prefer crypto to be pushed out of the regulatory sphere,” Coinbase said, citing recent warnings from US banking regulators to financial institutions about holding crypto on public blockchains.
Polygon Labs, the operator of the Polygon protocol designed to increase the speed and reduce the costs associated with Ethereum transactions, has reduced its staff by 20%, which equates to a loss of around 100 employees.
Analyst notes: “Bitcoin traders appear to be ignoring a laundry list of bearish macro drivers that include; a return on the stronger dollar as the bond market rebounds, downward pressure on stocks as investors price in more Fed rate hikes, and on concerns that stablecoin regulation could put further pressure on crypto. Bitcoin’s correlation with most risk assets appears to be changing. The crypto winter that saw prices collapse from $68,911 to $15,485 seems to have priced in enough of the bad news,” said Edward Moyasenior analyst at OANA, in a memo seen by Benzinga.
“Bitcoin still respects the key $25,500 level, but a break could open the door for momentum traders to target a bigger move higher. The first resistance would come from the $28,000 level, but most traders may have their eyes on the psychological $30,000 level .”
Cryptanalyst Michael van de Poppe has given some advice to those thinking of investing in Bitcoin. He said that when Bitcoin was at $25,000, people wanted to buy in at $22,000, but when it dropped to $22,000, they wanted to buy in at $19K. In the end, they end up buying for $30,000 and their emotions get the best of them. “Avoid emotions, trade prices. Just average dollar cost,” he tweeted.
When #Bitcoin is at $25K, people want to buy at $22K.
When #Bitcoin is at $22K, people want to buy at $19K.
When #Bitcoin is at $19K, people will buy at $12K.
End up buying for $30K.
Avoid emotions, trade prices.
Average dollar cost only.
— Michaël van de Poppe (@CryptoMichNL) 21 February 2023
Pseudonymous analyst Kaleo said Bitcoin is on the verge of an explosive breakout, and expect it to take out its diagonal resistance and rise as high as $30,000 in the coming days. After this increase, Kaleo expects a short pullback that will allow the resistance to become a form of support. “$30,000 is a magnet, but so is $40,000.”
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