Bitcoin, Ethereum, XRP Slide, While Dogecoin Gains Ahead Of Key Inflation Data: Analyst Flags Level That Historically Marked BTC's Bottom

Leading cryptocurrencies extended losses alongside the stock market on Wednesday, as investors brace for crucial consumer inflation data.

Painful February Continues

Bitcoin oscillated between $65,000 and $68,000, while a low 24-hour trading volume suggested a lack of strong buying interest to push the price higher. Ethereum briefly broke below its support at $1,900, but quickly reversed. 

The two blue-chip coins have had it rough in February, with Bitcoin declining 16% already, and Ethereum down more than 20%.

Shares of cryptocurrency-related companies, including Strategy Inc. (NASDAQ:MSTR)  and Coinbase Global Inc. (NASDAQ:COIN), closed down 2.44% and 7.90%, respectively.

Over $250 million was liquidated from the market in the last 24 hours, according to Coinglass, with $179 million in bullish long bets alone wiped out.

Bitcoin’s open interest slid 2.37% over the past 24 hours, although majority of whale and retail investors on Binance remained bullish on the apex cryptocurrency.

The "Extreme Fear" sentiment prevailed in the market, according to the Crypto Fear & Greed Index.

Top Gainers (24 Hours) 

The global cryptocurrency market capitalization stood at $2.31 trillion, following a decline of 1.33% over the past 24 hours.

Stock Market Sees Big Sell-Off

Stocks tumbled on Thursday as investors fretted over AI disruption. The Dow Jones Industrial Average fell 669.42 points, or 1.34%, to end at 49,451.98. The S&P 500 slid 1.57% to close at 6,832.76, while the tech-heavy Nasdaq Composite lost 2.03% to settle at 22,597.15.

Spot gold was up 0.78% at $4,960 per ounce, after dipping below $5,000 earlier in the day. Spot silver rose 1.86% to $76.62 an ounce.

All eyes now on Friday’s  Consumer Price Index data as investors seek inflation readings and clues to the Fed’s policy path.

How Long Before BTC Bottoms?

Popular cryptocurrency analyst and trader Ali Martinez said that Bitcoin’s 1130-day simple moving average, a long-term trend indicator, has historically marked cycle bottoms.

"That level currently sits at $66,500," Martinez added.

Rekt Capital, another widely followed chartist, stated that Bitcoin’s weekly close below its 200-week exponential moving average, currently at $68,300, has historically signaled “bearish acceleration.”

"Therefore a weekly close below ~$68,300 followed by a bearish retest of it would likely position Bitcoin for a repeat of history with additional downside over time," the analyst predicted.

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