The world's largest cryptocurrency by market cap traded in tandem with tech stocks, which also declined.

Good morning. Here’s what’s happening:

Market moves: Bitcoin's price slid in tandem with tech stocks.

Technician’s take: BTC downside could persist into the Asia trading day; support around $40K.

Prices

Bitcoin (BTC): $42,581 -3.2%

Ether (ETH): $3,250 -3.5%

Markets

S&P 500: $4,659 -1.4%

DJIA: $36,113 -0.4%

Nasdaq: $14,806 -2.5%

Gold: $1,822 -0.1%

Market moves

Chart of bitcoin's price over the past month. (CoinDesk)

Bitcoin (BTC) slid on Thursday, erasing the prior day's gains but staying within the past few weeks' trading range of roughly $40,000 to $44,000.

News in the market included a potential ban on the use of cryptocurrencies in Pakistan along with signs that bitcoin miners are increasing their accumulation of the cryptocurrency, apparently refusing to sell at current prices.

A prominent Wall Street commodities analyst said that bitcoin is likely to outperform the raw materials staples oil and copper over the coming decade.

Tether said it froze $160 million of its dollar-linked stablecoins USDT on the Ethereum blockchain, while CoinDesk columnist David Morris weighed in on bitcoin, inflation and the expectations game.

But the likely culprit of bitcoin's slide on Thursday was that it traded in tandem with tech stocks, with the Nasdaq 100 suddenly swooning on investor fears that the Federal Reserve will move within the next few months to start raising interest rates for the first time since 2018.

Mary Daly, president of the Federal Reserve Bank of San Francisco, told Reuters in an interview that it "seems a quite reasonable thing" to start raising interest rates in March.

A tightening of monetary conditions by the Federal Reserve could put downward pressure on prices for risky assets, from stocks to cryptocurrencies, while also curbing inflation – potentially reducing the appeal of bitcoin, which has been bought by many investors as a hedge against inflation, which is rising at its fastest pace in nearly four decades.

Is that a bullish sign, or bearish? Time may tell.

"It does feel like markets are at peak fear on U.S. monetary policy which could make relief rallies more likely," Craig Erlam, an analyst for the foreign-exchange brokerage Oanda, wrote Thursday in a market update. "But there is also underlying anxiety in the markets that could make for some volatile price action for the foreseeable future."

Erlam predicts that if bitcoin could break above $45,500, "we could see another sharp move higher as belief starts to grow that the worst of the rout is behind it."

Technician's take

Bitcoin four-hour price chart shows support/resistance with RSI on bottom. (Damanick Dantes/CoinDesk, TradingView)

Bitcoin pulled back after buyers took some profits near the $44,000-$45,000 resistance zone.

The cryptocurrency remains in a short-term downtrend, although support at around $40,000 could stabilize the pullback.

BTC is down about 2% over the past 24 hours and is roughly flat over the past week. A decisive break above $45,000 is needed to reverse the short-term downtrend, but slowing momentum suggests price weakness could persist into the Asia trading day.

The relative strength index (RSI) on the four-hour chart declined near overbought levels, similar to what occurred in late December, which preceded a pullback in price. Buyers will likely remain on the sidelines until oversold conditions materialize, most likely over the next few days.

Important events

8:30 a.m. HKT/SGT (12:30 a.m. UTC): Australia home loans (Nov.).

10 a.m. HKT/SGT (2 a.m. UTC): China imports and exports (Dec. YoY).

10 a.m. HKT/SGT (2 a.m. UTC): China trade balance (Dec. YoY).

3 p.m. HKT/SGT (7 a.m. UTC): U.K. gross domestic product (Nov. MoM).

3 p.m. HKT/SGT (7 a.m. UTC): U.K. industrial production (Nov. MoM, YoY).

3 p.m. HKT/SGT (7 a.m. UTC): U.K. manufacturing production (Nov. MoM, YoY).

All writers’ opinions are their own and do not constitute financial advice in any way whatsoever. Nothing published by CoinDesk constitutes an investment recommendation, nor should any data or Content published by CoinDesk be relied upon for any investment activities. CoinDesk strongly recommends that you perform your own independent research and/or speak with a qualified investment professional before making any financial decisions.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: The monthly settle defines the next move

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: The monthly settle defines the next move

The crypto market is at a standstill going into the final days of November. The monthly price will likely depict price action for weeks to come, and the market could witness an uptick in volatility. Traders should keep their eye on the key levels identified for any last-minute moves.

More Bitcoin News

FTX Latest: Former CEO Sam Bankman-Fried explains reopening withdrawals of Bahamian arm

FTX Latest: Former CEO Sam Bankman-Fried explains reopening withdrawals of Bahamian arm

FTX Digital Markets filed for bankruptcy on November 16; however, withdrawals for some will be resumed temporarily. Former FTX head Sam Bankman-Fried attempted to inform Bahamian regulators beforehand but to no avail.

More Cryptocurrencies news

Arguing the case for a Cardano price pullback to $0.35

Arguing the case for a Cardano price pullback to $0.35

Cardano price has produced four lower highs throughout the month, with three connected by a recently breached trendline. A hurdle above $0.322 could create an additional 12% upswing. A four-hour candlestick close below the $0.304 level would invalidate the bullish potential.

More Cardano news

Luna Classic Price Prediction: 10% drop then a market reversal

Luna Classic Price Prediction: 10% drop then a market reversal

Terra's Luna Classic price has been trading range bound for over a week. The consolidating range has produced higher highs and higher lows following each change of trend. A breach of $0.0001690 would invalidate the bearish triangle thesis.

More Luna Classic news

Bitcoin: Assessing chances of one last bear market rally for 2022

Bitcoin: Assessing chances of one last bear market rally for 2022

BTC is in a good place to trigger another bear market rally from a high-time frame perspective. This development, combined with the optimistic outlook seen in on-chain metrics, further strengthens the possibility of a happy ending to 2022.

Read full analysis

BTC

ETH

XRP