Dogecoin Rises Further On Musk Effect, Bitcoin, Ethereum Dip: Analyst Says Apex Coin Rally 'Out Of Steam' But Could Return If This Happens - Bitcoin (BTC/USD), Ethereum (ETH/USD), Dogecoin (DOGE/USD)


The Dogecoin rally continued, but Bitcoin and Ethereum traded lower on Thursday evening as the global cryptocurrency market cap fell 2.3% to $983.2 billion at 8:01 p.m. EDT.

Price Performance Of Major Coins
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 ended Thursday lower by 0.6% and 1.6% respectively. 

A decline in technology stocks weighed on Nasdaq futures, which were lower by 0.9%, while S&P 500 futures were down 0.6% at the time of writing.

U.S. gross domestic product rose at a 2.6% annualized rate for the third quarter, a number higher than average economic estimates of 2.4%. In the preceding quarter, GDP declined by 0.6%.

Initial jobless claims rose by 3,000 for the week ending Oct. 22 to 217,000 from an unrevised 214,000 mark in the prior week, data from the U.S. Labor Department indicated on Thursday.

OANDA Senior Market Analyst Edward Moya said that the data shows that the “economy is weakening.”

“​​It looks like the economy is still headed for a recession, but that might reinforce Fed pivot calls which still seem to be driving some inflows back into equities,” said Moya.

“Bitcoin’s rally has run out of steam. Momentum from the rally above the $20,000 level has stalled out as risk appetite struggles to find solid footing post earnings and U.S. economic data,” said the analyst in a note, seen by Benzinga.

“​​Bitcoin seems likely to consolidate leading up to the FOMC decision, but it could see further strength if the dollar continues to soften. ​ If Wall Street grows more concerned with the economic outlook, rates could slide even further, which is great news for crypto.”

Among the more prominent cryptocurrencies, Dogecoin continued its upward march, buoyed by Tesla Inc TSLA CEO Elon Musk’s imminent Twitter buyout. The memecoin is trading in an uptrend. It has a resistance at $0.083 and 0.099 and support at $0.075 and $0.067, according to Benzinga’s Melanie Schaffer.

Trading volume for DOGE spiked 98% to $2.65 billion at press time, according to CoinMarketCap data. Coinglass figures indicated that $16.47 million worth of DOGE was liquidated over 24 hours.

On Ethereum, Michaël van de Poppe said that the second-largest coin is facing resistance around the $1,600-$1,650 level. The cryptocurrency trader tweeted, “Might question whether we’ll continue the rally, and we clearly need to crack that resistance, and then face $1,750. Short term, I’d love to have entries around $1,400-1,450.”

The Amsterdam-based trader said that Bitcoin is still within the resistance level as it rejects around $20,800 and the long-time frame also rejects at $20,750. 

Justin Bennett touched on the dollar index, a measure of the greenback’s strength against six of its peers, in a tweet. The trader asked what if the dollar index “lower high and lower low everyone is getting excited about is just the beginning of a bull flag with a 120 measured objective.”

“This isn’t a trend I want to fight without higher time frame invalidation, which we don’t have,” said Bennett. Notably, the dollar index was 0.8% higher at 110.56 at the time of writing.

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