First Mover Asia: Bitcoin Rally Stalls After US Central Financial institution Chair’s Feedback; Ether Rises

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Good Morning. Here’s what happened this morning:

Market Moves: Bitcoin fell on the comment of Federal Reserve Chairman Powell, while Ether gained more market share.

Tech’s Opinion: Support levels will remain intact, which could create a tight trading range of between $ 55,000 and $ 60,000 BTC by Asian trading day.

Watch the latest episodes of CoinDesk TV for insightful interviews with leaders in the crypto industry and analysis.

Prices

Bitcoin (BTC): $ 57,157 -1.3%

Ether (ETH): $ 4,642 + 4.4%

Markets

S&P 500: $ 4,567 -1.9%

Dow Jones Industrial Average: $ 34,483 -1.8%

Nasdaq: $ 15,537 -1.5%

Gold: $ 1,772 – 0.80%

Market movements

Bitcoin’s price fell after Federal Reserve Chairman Jerome Powell warned Tuesday that the risk of higher inflation had “increased” and signaled that the central bank would consider curtailing its buying policy, that has boosted risky asset markets.

“A faster rejuvenation and increase in the Fed [interest] Rate hike expectations were bad news for Bitcoin, ”wrote Edward Moya, senior market analyst at currency broker Oanda, in a market commentary. “Bitcoin acts more like a risky asset than an inflation hedge.”

On the flip side, Ether, the second largest cryptocurrency by market capitalization, ended Tuesday for the fourth consecutive day of profits, trading above $ 4,600 according to data from CoinDesk.

“Ethereum is still the most popular crypto bet for most traders and it seems like it will make another run towards $ 5,000 once risk appetite returns,” added Moya.

The growing market dominance of Ether is also reflected in the Ether-Bitcoin (ETH / BTC) chart: According to TradingView, the ETH / BTC daily chart on the Binance crypto exchange rose by more than 5.2% at the time of going to press.

Other Layer 1 blockchain-associated tokens also posted gains on Tuesday, led by Terra Blockchain’s LUNA token, which hit a new record price.

Read more: UST stablecoin demand, DeFi incentives drive Terra’s LUNA to a new all-time high

Technician take

Bitcoin fell below $ 58,000; Support between $ 53K- $ 55K

Bitcoin Four Hour Price Chart Shows Support / Resistance Levels (Damanick Dantes / CoinDesk, TradingView)

Bitcoin (BTC) buyers were unable to sustain Monday’s price surge, although support of $ 53,000 to $ 55,000 could stabilize the current pullback.

The cryptocurrency is down about 2% in the past 24 hours and has been roughly flat for the past week.

The downward sloping 100-day moving average on the 4-hour chart is suggestive of a near-term downtrend. This means that buyers have consistently taken profits from the rallies over the past month.

Lately, despite oversold levels on the charts, the $ 60,000 resistance level has been a major hurdle for buyers. So far, support levels remain intact, which could establish a narrow trading range between $ 55,000 and $ 60,000 by the Asian trading day. BTC was trading at around $ 57,800 at press time.

Important events

8:30 a.m. HKT / SGT (12:30 p.m. UTC): Jibun Bank Manufacturing’s purchasing managers’ index (Nov.)

8:30 a.m. HKT / SGT (12:30 p.m. UTC): Australia’s Gross Domestic Product (Q3 / YoY / QoQ)

9:45 a.m. HKT / SGT (1:45 a.m. UTC): Caixin China Purchasing Managers Index (Nov.)

3:00 p.m. HKT / SGT (7:00 a.m. UTC): Germany retail sales (Oct. YoY / MoM)

CoinDesk TV

In case you missed it, here are the latest episodes of “First Mover” on CoinDesk TV:

Jack Dorsey’s plan after his resignation as Twitter CEO, Hedera Hashgraph CEO for intercontinental real-time settlement with stablecoins

First Mover hosts spoke to Kristin Smith, Executive Director of the Blockchain Association, when their organization raised $ 4 million to expand its presence on Capitol Hill. WisdomTree Head of Digital Assets Jason Guthrie shared insights into the crypto markets when Bitcoin’s six-month “put-call skew” turned bearish for the first time since May. In addition, Hedera Hashgraph co-founder and CEO Mance Harmon announced the new partnership with the South Korean Shihan Bank and the multinational Standard Bank on stablecoins.

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Read longer

The Future of Money: A Story: Bookkeeping has shaped civilization for centuries. And thanks to crypto, we’re going to see Accounting 3.0 now. This essay is part of CoinDesk’s Future of Money Week.

Who sets the rules of Bitcoin as nation states and corps roll-in: Can a small team of core developers protect the integrity of Bitcoin, now is it a question of geopolitical relevance?

Today’s Crypto Explain: Is Bitcoin Legal?

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