While a low interest rate environment has sent both stock and crypto markets skyrocketing this year, a rate hike and ending easy-money policies more quickly could, however, turn the market in a bearish direction.
Ether also fell sharply on Monday, despite the fact that the No. 2 cryptocurrency by market capitalization previously proved it was more resilient to macro headwinds than bitcoin. At the time of publication, ether was down by about 10% at one point in the past 24 hours.
The ether-to-bitcoin price chart, an indicator of bitcoin’s dominance relative to ether, dropped accordingly, after reaching its highest level since 2018.
According to crypto trading data firm Kaiko, the ether-to-bitcoin ratio chart has historically served as a gauge for investor sentiment.
“When the ratio increases, it suggests investors are rotating funds into ethereum and altcoin [alternative cryptocurrencies] markets, and vice versa,” Kaiko wrote in its newsletter on Monday. “Since the end of October, the ratio has been on a steady upward trend and recently topped its highest level since 2018.”
Bitcoin (BTC) remains under pressure as buyers failed to break above $50,000 over the past week.
The cryptocurrency is down about 6% over the past 24 hours and was trading around $47,300 at the time of publication.
Immediate support is seen at the 200-day moving average (around $46,700), which is also the bottom of a weeklong price range. Given negative momentum signals, however, bitcoin is at risk of breaking below support, which could damage the intermediate-term trend.
For now, the relative strength index (RSI) is the most oversold since May, which could encourage short-term buying. Still, upside appears to be limited toward the $50,000 resistance level.
If a breakdown occurs, the next level of support is seen around $40,000, which could stabilize the decline.
8:30 a.m. HGT/SGT (12:30 a.m. UTC): National Australia Bank business conditions/business confidence (Nov.)
12:30 p.m. HGT/SGT (4:30 a.m. UTC): Japan industrial production (Oct. YoY/MoM)
“First Mover” hosts spoke with Jonathan Manzi, CEO of Beyond Protocol, a blockchain project that focuses on trust and security, after BadgerDAO recently revealed details of how it was hacked for $120 million. First Mover covered crypto market insights from Eaglebrook Advisors Director of Research Joe Orsini. Plus, what blockchain unicorns have emerged in North America this year? Blockchain Coinvestors Managing Partner Matthew Le Merle offered details from his list.
“But crypto users worldwide may soon face similar predicaments as U.S. regulators, with their global reach, try to rein in the illegal use of cryptocurrency. The prospects for these users to recover their money are unclear, even if they are innocent of any wrongdoing.” (CoinDesk – Chatex Users)…. “Some people make the mistake of assuming regulators are more independent and impartial than they actually are. If this year – even the past week – has shown us anything, it should be a realization that priorities and emphasis can shift, sometimes dramatically, with a change in administration and senior leadership. The multi-regulator system reduces the shocks from this risk.” (CoinDesk – Matthew Homer)…. ”So you thought all the guys who bought the dip before just got lucky? No, it’s never that easy.” (Changpeng Zhao)