Dogecoin, Ethereum Spike As Bitcoin Holds Above $21K: Analyst Warns 'Late Bulls To Flip Bearish' If Apex Crypto Retests This Level

Major coins traded in the green on Tuesday evening, as the global cryptocurrency market rose to $991 billion, as of 8:30 pm EST.

What Happened: Bitcoin BTC/USD was above the $21,000 mark at the time of writing, notching weekly gains of 25%, while Ethereum ETH/USD was trading above the $1,500 level with a 23% increase over the last seven days. 

Meme crypto Dogecoin DOGE/USD was up 1.91% in the last 24 hours. 

U.S. Equities closed at mixed levels as investors digested fourth-quarter earnings reports from banks including Goldman Sachs. The Dow Jones Industrial Average (DJIA) fell 1.1%, the S&P 500 slid 0.2%, and the tech-heavy Nasdaq Composite edged up 0.1%.

Cryptocurrency bank Silvergate Capital reported a net loss of $1 billion for the fourth quarter on Tuesday.

Sam Bankman-Fried founded FTX said $415 million in cryptocurrency was transferred by hackers from its international and US exchanges.

See More: Best Crypto Day Trading Strategies

In its recent note, Arcane Research assessed last week's crypto market as “remarkably strong and lively” but urged caution, saying, “short-term, the momentum seems overextended.”

“Bitcoin is rallying as central banks all around the world show signs they are close to the end of their respective tightening cycles. Investors are slowly getting back into crypto as the global crypto market eyes the $1 trillion level again. Contagion fears have eased and the focus for many crypto traders is to ride this breakout,” said Edward Moya, Senior Market Analyst, The Americas OANDA, in a note seen by Benzinga.

Whales accumulated a total of $4.4 billion worth of BTC when it started to rise from the $16,000 level seen last month to its current $21,000 mark. According to data from on-chain analytics firm Santiment, Bitcoin shark addresses holding between 10 and 100 BTC were the first to start accumulating, adding 105,600 coins worth over $2.2 billion, in just 10 weeks and halting BTC’s decline at $16,000.

📈 A definitive explanation on why #crypto prices have bounced:

🦈10-100 $BTC wallets added 105,600 #Bitcoin in past 10 weeks
🐋100-1,000 $BTC wallets added 67,000 #Bitcoin in past 8 weeks
🐳1,000-10,000 $BTC wallets added 37,100 #Bitcoin in past 10 dayshttps://t.co/sGLqJLxGVD pic.twitter.com/kpQimOXmeO

— Santiment (@santimentfeed) January 14, 2023

Pseudonymous Crypto analyst Kaleo warned that many late bulls are in danger of becoming bearish once again if Bitcoin retests $19,000.

Lots of late bulls are about to flip bearish again when Bitcoin retests the high 19s, just to get trapped in some fresh shorts.

It’s a tale as old as time.

— K A L E O (@CryptoKaleo) January 17, 2023

Read Next: Bitcoin, Ethereum Extend Rally, Dogecoin Down: Analyst Says Apex Coin Might 'Seek A Sweep' Of $21,600 Mark