First Mover Asia: Bitcoin Below $40K Before Regaining Ground; Altcoins Fall

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good morning. Here’s what happens:

Market moves: Bitcoin fell below $40,000 for a while as US stocks continued to slide thanks to the newly hawkish Federal Reserve.

Technical Takes: Bitcoin buyers can respond to short-term oversold signals, although the upside appears limited.

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

the prices

Bitcoin (BTC): $41.797 -0.2%

Ether (ETH): $3,077 – 2.6%

markets

S&P 500: $4,670 – 0.1%

DJIA: $36,068 – 0.4%

Nasdaq: $14.942 + 0.05%

Gold: 1801 USD + 0.3%

market moves

Bitcoin fell again on Monday during US trading hours after a slight recovery over the weekend. The bearish price action came after US stock market losses deepened as investors prepare for action from the more hawkish Federal Reserve.

The most valuable cryptocurrency briefly fell below $40k in the early hours before easing back above $41,000. At press time, bitcoin was trading over $41,500, down about 1% in the past 24 hours, according to CoinDesk data.

Last week, the prices of the oldest cryptocurrency fell for six consecutive days after Federal Reserve minutes revealed that policy makers discussed large interest rate increases along with a faster pace of normalization of its balance sheet.

“Tightening of financial conditions is expected to negatively affect risky assets such as stocks and cryptocurrencies as they become less attractive than safe-haven bonds,” crypto-trading data firm Kaiko wrote in its weekly newsletter on Monday.

According to Kaiko, the impact of the Federal Reserve’s meeting in December sent the correlation between bitcoin and traditional assets to their highest levels in more than a year.

(Kaiko)

“The Federal Reserve’s December meeting had a strong impact on global financial markets, as traders reacted quickly to the prospect of monetary policy tightening,” Kaiko wrote. “During the volatility, bitcoin behaved aggressively like a risky asset.”

After bitcoin, most major cryptocurrencies were also in the red on Monday. Ether, the second largest cryptocurrency by market capitalization, fell below $3,000 sometime before back above $3,000.

take technician

Bitcoin settled above the $40K support; Resistance is near $45,000

Bitcoin four-hour price chart showing support/resistance with the RSI at the bottom (Damanick Dantes/CoinDesk, TradingView)

Bitcoin (BTC) selling pressure is starting to fade after the price drop last week. The cryptocurrency maintains short-term support at around $40K, although the upside appears to be limited near $43,000-$45,000.

Bitcoin is down about 2% over the past 24 hours, although price action has been somewhat muted over the past few days.

The Relative Strength Index (RSI) on the four-hour chart is rising from oversold levels, which usually precede a short price bounce. On the daily chart, the RSI is in the most oversold territory since December 10.

Bullish momentum weakens given BTC’s 2-month long downtrend. This means that sellers can remain active around the resistance levels.

important events

8:30 a.m. HKST/Singapore (12:30 a.m. UTC): Australia’s imports and exports (November)

8:30am HKST/Singapore time (12:30am UTC): Australia Retail (November)

8:30am HKST/Singapore time (12:30am UTC): Australian Trade Balance (November)

1pm HKST/Singapore time (5am UTC): Japan’s leading economic indicator (November)

11pm HKST/Singapore (3pm UTC): US Federal Reserve Chairman Jerome Powell testifies before Congress

CoinDesk TV

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

Sandbox Co-Founder at Metaverse Development, Dfinity Founder on Her Internet Computer Opens Ethereum Bridge

The “First Mover” hosts discussed the metaverse with Sebastien Borget, co-founder and chief operating officer of The Sandbox. Additionally, DFINITY Founder and Chief Scientist Dominic Williams shared his insights into the company’s opening of the internet’s Ethereum Bridge. Finally, TheoTrade co-founder Don Kaufman provided a market analysis.

Latest headlines

Digital asset funds hit by record weekly inflows of $207 million: Bitcoin-focused mutual funds saw outflows of $107 million during the seven-day period.

Pakistan Investigative Agency Binance Communications About $100 Million Scam: At least 11 allegedly fraudulent apps linked to Binance have infected several thousand investors.

Major mining pools’ Bitcoin hash are nearing recovery with Kazakhstan’s internet partially restored: The world’s second largest mining country has experienced civil unrest over the past week.

Billionaire investor Bill Miller now owns 50% of his personal fortune in Bitcoin: The famous fund manager had invested heavily in bitcoin in his funds before.

Jefferies analyst says: The bitcoin price drop will deter new entrants and help existing companies gain market share.

Prepares readings

Metaverse needs a constitution: If we want our virtual worlds to be free and open, they need rules. Or companies like Meta (Facebook) will make it for us.

Today’s coding explanation: CME Ethereum futures explained

Other sounds: Crypto Crazy: My Attempt to Become a Bitcoin Billionaire

said and heard

“And if you do it right and long enough, like Ethereum or Binance, you may become too rooted to be able to get rid of it. In the current regulatory environment, it’s the best chance for blockchain companies to succeed. We did it differently. We tried to do it “correctly.” So, We have to close now.” (Entrepreneur Zoe Adamovich writes for CoinDesk about shutting down her latest venture, Neufund)… “There is an intense fear in the street about tech stocks. Tech stocks have been on an uptrend, and now Fed fears and a huge 10-year yield are shattering a party Technology as investors hit the sell button and head for elevators in unison.” (Wedbush Securities Managing Director, Dan Ives in the New York Times)…” Indeed, DAOs likely have some of the same principal agent problems that exist in the traditional world. In theory, customers can buy shares in a company and share in the benefits that come from tapping into their data as well. They can also vote for the management team. In practice, this rarely happens.” (Paul Brody, EY Global Blockchain Leader and CoinDesk Columnist)

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