Bitcoin Maintains $26,500 Price; Ethereum Falls Below $1,550; Altcoins Also Suffering
Bitcoin and Other Cryptocurrencies Struggle as Inflation Numbers Push Dollar Index Higher
Bitcoin and other crypto tokens continued to struggle on Friday, marking the fourth consecutive session of decline. The lower-than-expected inflation numbers in the United States pushed the dollar index and treasury yields higher, denting the sentiments for the riskier asset class.
Bitcoin in Red Again
Bitcoin was seen in the red once again as the last crypto token declined marginally but managed to hold above 26,500 levels. However, its largest peer, Ethereum, dropped more than a per cent to slip below $1,550-level. Pain in the altcoins continued to weigh on the market sentiments.
Market Attribution
The dip in the crypto markets can be attributed to the September CPI data that came out the previous day, said Parth Chaturvedi, Investments Lead at CoinSwitch Ventures. “The US Dollar Index has climbed, pressuring ‘risk-on’ asset classes like equities and crypto,” he said.
Market in the Red
All top crypto tokens were trading lower on Friday. Toncoin and Solana dropped about 3 per cent each, while Tron, Polkadot and Polygon shed about a per cent each. Shiba Inu inched up marginally, while the US dollar pegged USD Coin also inched up marginally in the early trade.
Cryptocurrency Market Cap Drops
The global cryptocurrency market cap was trading significantly lower, dropping to $1.04 trillion-mark, as it declined about half-a-per cent in the last 24 hours. However, the total trading volumes tanked about 13 per cent to $22.64 billion.
Market Analysis
Bitcoin has been trading around the $26,600 level. The US CPI for September rose by 0.4 per cent instead of the anticipated 0.3 per cent and triggered rise in the US Dollar index. This may have made investors slightly cautious regarding their investments, said Edul Patel, Co-Founder & CEO at Mudrex.
Struggle for Dogecoin
Dogecoin (DOGE) is currently facing difficulty breaching a previous resistance level ($0.061) and is in a downward momentum. DOGE attempted a rebound to this level this week that coincides with its 50-day moving average but price has instead broken down from a horizontal channel.
Support and Resistance Levels
In case of a further decline, the recent low (at $0.056) serves as an early support level, with the $0.052 zone providing the next line of defense. Price may consolidate in the near term if it continues to hold $0.056 support. Its 14-day RSI is in the oversold territory and is currently at 30.
Market Recommendations
As always, it is recommended to consult your financial adviser before taking any position in the assets mentioned.
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