Bitcoin, Ethereum, Dogecoin Show Resilience As 2022 Fades Away, Analyst Says ‘Plenty More

Large cryptocurrencies were in the green on Thursday evening as the global cryptocurrency market cap rose 0.4% to $798.2 billion at 7:13 p.m. EST. 

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Why It Matters: Bitcoin and Ethereum traded almost 0.4% and 0.8% higher intraday as the year drew to a close. At the time of writing, the two largest coins were resilient even as U.S. stock futures turned red ahead of the last trading day of 2022.

“Investors are going into 2023 with a cautious mindset, prepared for more rate hikes, and expecting recessions around the globe. The bar is low but arguably reasonably so,” said Craig Erlam, a senior market analyst with OANDA.

“Bitcoin continues to happily tread water and watch the storm pass as it fluctuates in a range of around $16,000-$17,000. That’s broadly been the case over the last couple of weeks and it doesn’t look like changing in the coming days, barring any unexpected headlines,” said Erlam, in a note seen by Benzinga.

Erlam wrote that he was not convinced if the apex coin has “bottomed” and how long it will take for investor confidence to return.

“I’m not convinced by either in the near term and think there are plenty more twists and turns to come early next year.”

Michaël van de Poppe said Bitcoin saw harsh rejection at the $16,800 and $16,600 levels. “Looks to be we’re testing the block around $16,400 again for [Bitcoin],” said the trader.

Trader Justin Bennett touched on the weakness in the dollar index — a measure of the greenback’s strength against a basket of six currencies — and said it matters for Bitcoin too. The dollar index was noted at 103.98, down 0.46% intraday at the time of writing.

Chartist Ali Martinez noted that Ethereum whales with holdings between 10,000 and 100,000 ETH have sold or redistributed around 880,000 ETH since December 2022.

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