Image source: artmagination
Bitcoin’s rally ended after comments from U.S. Federal Reserve Chair Jerome Powell’s warnings about risk. Ether, the native token of Ethereum, increased its market share. In terms of technical analysis, Bitcoin support levels remain intact, which could lead to a narrow trading range between $55,000-$60,000 BTC today, CoinDesk wrote.
‘Increased’ risk of high inflation
Bitcoin lost value on Tuesday after U.S. Federal Reserve Chair Jerome Powell warned that the risk of higher inflation has “increased,” ending its healthy three-day rally. The US central bank might consider accelerating the reduction of asset purchase policies that have augmented the markets for risky assets.
However, ether was unphased by the comments. The second-largest crypto by market cap ended November 30 with its fourth straight day of gains, changing hands at almost $4,800. At the time of writing, it’s trading at $4,731.
Edward Moya, senior market analyst at foreign-exchange broker Oanda, wrote in a market commentary cited by CoinDesk:
A faster Fed taper and increased [interest] rate hike expectations was bad news for bitcoin. Bitcoin is trading more like a risky asset than an inflation hedge. Ethereum is still the favorite crypto bet for most traders and seems like it will make another run towards $5000 once risk appetite returns.
ETH-BTC chart reflects ether’s growing market dominance
The second crypto’s increasing market dominance is reflected on the ether-bitcoin chart. On crypto exchange Binance, the daily chart was up by more than 5% yesterday.
On Tuesday, a number of other layer 1 blockchain tokens registered gains. Terra’s LUNA led the way, hitting a new all time high.
Bitcoin drops below $58K
Monday’s price increase failed to be sustained by investors buying Bitcoin. However, experts suggest support around $54,000 can stabilize the current dropdown. Bitcoin has been more or less flat over the past week.
A limited-term downtrend is indicated by the downward-sloping, 100-day moving average on the four-hour chart this morning. This shows buyers have been taking profit consistently on rallies over the past month.
$60K positions itself as new resistance level
The recent resistance level of $60,000 has become a major hurdle for buyers despite charts indicating overselling. Support levels remain intact so far, which could result in a narrow trading range between $55,000-$60,000 today. At the time of writing, Bitcoin was trading around $58,876.
Important events today
Two important events will take place at 8:30 a.m. HKT/SGT (12:30 a.m. UTC) today: a report on Australia’s gross domestic product Q3 and on Jibun Bank Manufacturing purchasing managers’ index.
