Bitcoin price dips under $75K as crypto markets miss tech-stock rebound

Bitcoin (BTC) set new multi-week lows after Friday’s Wall Street open as BTC price action diverged from stocks.

Bitcoin fell to $74,762 after the start of Friday’s US trading session, its lowest level since Aug. 21.

Investors piled into tech stocks after Thursday’s sell-off, with the Nasdaq Composite Index gaining 1.8% in the first hour.

BTC price analysis warned that $69,000 could return if 50-week trend line support gave way.

Data from TradingView showed BTC/USD dipping below $75,000 to levels last seen in mid-August. The total crypto market cap was down 0.5% on the day.

US stock markets rebounded as traders took advantage of heavily discounted tech shares. The S&P 500 and Nasdaq Composite Index traded up 0.6% and 1.2%, respectively, at the time of writing.

Certain tech stocks saw much sharper gains, with SanDisk and Micron Technologies both up 6.3%.

US nonfarm payrolls data released on Friday showed that the economy added 165,000 jobs in October, well above market expectations of 65,000. September’s 29,000 figure was also revised upward to 60,000.

“Employment increased in professional and business services, in health care, and in transportation and warehousing,” an official release from the US Bureau of Labor Statistics (BLS) reported, adding that the unemployment rate was now 4.1% versus a predicted 4.2%.

Stronger labor-market performance can create a headwind for crypto and risk assets as it suggests that the economy can manage any financial policy tightening, which in turn can reduce liquidity inflows to the market.

On the back of the latest data, expectations of the Federal Reserve hiking interest rates by 25 basis points at its December meeting increased from 66.9% to 76.8%, per data from CME Group’s FedWatch Tool.

Bitcoin tested support around its 50-week simple moving average (SMA) at $77,533.

In his latest market analysis, Keith Alan, cofounder of crypto trading platform Material Indicators, warned of the consequences of losing the trend line, which has acted as support since mid-September.

“As strong as this support level looks from both a technical and structural perspective, we can’t confirm its durability before the W close,” he wrote on X, referring to the weekly candle close.

Alan saw a drop to as low as $69,000 for BTC/USD should the area around $75,500 fail to hold. A recovery, he said, depended on the pair producing a series of higher highs and higher lows on lower time frames.