First Mover Asia: Bitcoin drifts lower after taproot upgrade; ether drops

The most significant improvement to the Bitcoin network in four years generated weekend enthusiasm in the blockchain community (and a short video) – but nothing too exciting in terms of a price reaction.

Good morning, Here’s what’s happening this morning:

Market Moves: Bitcoin’s highly anticipated Taproot upgrade fails to produce any noticeable price pop.

Good morning, Here’s what’s happening this morning:

Market Moves: Bitcoin’s highly anticipated Taproot upgrade fails to produce any noticeable price pop.

Technician’s take: Short-term upside appears to be limited given the loss of positive momentum.

Prices

Bitcoin (BTC): $64,514 +0.4%

Ether (ETH): $4,562 -1.7%

Market moves

Bitcoin was trading flat after Taproot, the blockchain’s biggest network upgrade in four years, went live.

The upgrade, which took effect at 5:15 coordinated universal time (1:15 a.m. HKT/SGT), had been closely tracked by cryptocurrency traders and analysts as a supporting market factor, though many experts had told CoinDesk earlier this month that the phase-in was likelier to be seen as a long-term technological advance than a near-term price catalyst.

The tech milestone was celebrated by Bitcoin enthusiasts, with at least one pop-up “Taproot.watch” website posting a commemorative (and somewhat amusing) video to ring in the blockchain’s new era.

“Although the Taproot upgrade is generally a positive development, the verdict is still out if it will make a big improvement to the blockchain world,” Apifiny CEO Haohan Xu wrote in emailed comments.

The largest cryptocurrency has been trading mostly in the low $60,000′s since hitting an all-time high near $69,000 last week. Researchers at the crypto exchange Kraken wrote Friday that buy orders are concentrating around $62,000, while there appear to be interested sellers around $67,000 to $69,000.

Bitcoin (BTC) dipped below $65,000 as buyers continued to take some profits. Lower support is seen around $60,000, which could stabilize the current pullback.

The relative strength index (RSI) on the four-hour chart is near oversold levels, similar to Oct. 27, which preceded a near 10% price rise. This time, however, buyers could face resistance around $65,000 given the loss of upside momentum this week.

Indicators suggest a period of consolidation could persist after upside exhaustion signals appeared on the charts last week. Further, a negative divergence on the daily RSI suggests limited upside over the short-term.

The weekly chart showed improving price momentum, although a decisive breakout above $69,000 needs to be confirmed before projecting upside targets.

Important events

• 9:30 a.m. HKT/SGT (1:30 a.m. UTC): China House Price Index (Oct.)
• 10 a.m. HKT/SGT (2 a.m. UTC): China Industrial Production (Oct. YoY)
• 10 a.m. HKT/SGT (2 a.m. UTC): China Retail Sales (Oct. YoY)
• 12:30 p.m. HK/SGT (4:30 a.m. UTC): Japan Industrial Production (Sept. YoY)
• 6 p.m. HK/SGT (10 a.m. UTC) Eurostat Trade Balance (Sept.)