Bitcoin, Ethereum, Dogecoin Shrug Off Inflation Data Jitters: Analyst Says Only Matter Of Time Before 'High-Number' Targets Again

Major coins traded in the green on Tuesday evening, as the cryptocurrency market capitalization increased by 2.43% in the last 24 hours to $1.03 trillion.

What Happened: The largest cryptocurrency by market value, Bitcoin BTC/USD, was trading above $22,000. Ethereum ETH/USD  was changing hands above $1,500 up 3.49% in the last 24 hours. Dogecoin DOGE/USD was up 1.84% in the last 24 hours, trading at $0.083. 

U.S. equities markets were mixed on Tuesday, with the S&P 500 index rising 0.1%, the tech-heavy Nasdaq Composite rising 0.6% and the Dow Jones Industrial Average down 0.2%.

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Tuesday's consumer price inflation report showed January's inflation rate slowing down at a much lower rate than expected, creating some market jitters. Despite this, Bitcoin continued its upwards trajectory.

Paxos burnt 684 million BUSD for dollar redemptions, according to on-chain data. As a former issuer of BUSD, Paxos took the decision to cease distribution after the Securities and Exchange Commission issued a Wells notice.

Analyst Notes: “Just when most of the traditional macro crypto drivers turn bearish, Bitcoin tries to show some resilience. Bitcoin is posting a modest rise as the January inflation report suggests the Fed could keep rates higher for longer. The market might be pricing in a little more Fed tightening but that isn’t weighing that much on cryptos today. Regulation and contagion risks have pressured Bitcoin this month, so the downward move was potentially exhausted," said Edward Moya, senior market analyst at OANDA.

"Bitcoin has massive support at the $20,000 level, which means something major probably needs to break in the cryptoverse for selling momentum to resume. It seems everyone is focused on what the SEC will say on staking and this wait-and-see period could support sideways price action for cryptos."

Crypto analyst Michaël van de Poppe is optimistic that markets are bouncing upwards. He believes that it's only a matter of time before we hit high number targets again. 

Markets bouncing upwards.

Just a matter of time until we’ll see high number targets again.

Buy the dips, we’ll probably have fun coming months.

— Michaël van de Poppe (@CryptoMichNL) February 14, 2023

Pseudonymous analyst Kaleo said every single time Bitcoin has broken out of a major long-term bearish resistance against the Nasdaq, it has resulted in a powerful rally. Given this track record, it is highly likely that this time won't be any different

#Bitcoin / $BTC

This is your last reminder that every single time BTC has broken out of a major HTF bearish resistance vs. NDX it's had a face melting rally follow.

I have a hard time believing this time is going to be any different. pic.twitter.com/0FSFmMngAI

— K A L E O (@CryptoKaleo) February 14, 2023

Analyst Jason Pizzino said Bitcoin is still in a bullish market, but cautioned that Bitcoin may experience short-term dips. He outlines three key levels of support at $20,700, $19,800, and $18,600 that the market should aim not to dip below. If Bitcoin falls further than $18,000, he said that the structure of the bull market may be radically altered. 

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