Dogecoin and Bitcoin lead recovery among majors, but some analysts warn of selling pressure

Bitcoin (BTC) approached $23,500, the highest level in more than a month, in early European hours on Wednesday. The gains came as the second-largest cryptocurrency Ether (ETH) surged to $1,500 earlier this week ahead of the expected “Merge” event in September.

Dogecoin’s DOGE jumped 11%, driving gains among major cryptocurrencies over the past 24 hours. No technical catalyst for the move seemed to exist, but network developers polled community members for their thoughts on a Dogecoin-centric hackathon event in November — which may suggest future technical development.

Cardano’s ADA and XRP prices rose 8%. BNB gained 2.7%, while Solana’s SOL traded flat after rallying nearly 30% in the past week. The total cryptocurrency market capitalization increased by 4%, surpassing $1.1 billion.

Outside the majors, ApeCoin’s APE jumped 8% as the buying momentum of last week’s Metaverse game demo continued. Shiba Inu’s SHIB jumped 10% despite no technical catalyst.

Market commentators said bitcoin’s gains came amid a rally in broader stock markets as traders outline the next round of rate hikes in the United States. The odds show a 65% chance of a 75 basis point rise from the current 150-175 range.

“Bitcoin posted its highest gains in a month on Tuesday thanks to a rebound in US stock indices and a weaker dollar,” FxPro principal market analyst Alex Kuptsikevich said in an email.

“Bitcoin has been testing highs since June 13 near $23,700, and on Wednesday it is trying to see itself above its 50-day moving average,” Kuptsikevich said. Consolidation above the 50-day moving average is seen as a sign of a positive change in momentum among chart-based or price action-based traders.

However, Kuptsikevich added: “If the bullish momentum stops, as it did in February and March of this year, we could be preparing for a big increase in selling. »

Other analysts showed similar sentiments and warned of a bullish mood.

“With the rules for future mining, staking and trading games still quite murky, and the value of cryptocurrency assets extremely sensitive to volatile financial market conditions, it is clear that investing in Wild West crypto is still a very risky business,” Susannah Streeter, senior market analyst at Hargreaves Lansdown, explained in an email.

“Investors should only touch the margin of their investments with money they must be prepared to lose,” Streeter added.

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