First Mover: Bitcoin Traders Keep Buying the Dip, Blockchain Data Suggests

PLUS: Bitcoin Rises From Oversold Levels, Resistance Around $56K

Everything you need to make sense of the crypto markets and beyond By the CoinDesk Markets Team - Edited by Lawrence Lewitinn March 26, 2021 Sponsored by     Bitcoin (BTC) +0.9%  $53,449 Ether (ETH)  +0.4%   $1,626 (Price data as of Mar. 26 @11:00 UTC) Good morning. Here's what we're writing about: Market Moves by Muyao Shen: Bitcoin Traders Keep Buying the Dip, Blockchain Data Suggests Technician's Take by Damanick Dantes: Bitcoin Rises From Oversold Levels, Resistance Around $56K Check out the CoinDesk TV show "First Mover," hosted by Christine Lee, Lawrence Lewitinn and Emily Parker, at 9 a.m. U.S. Eastern time. Today the show will feature guests: Charles Allen, CEO of BTCS Christopher "Flore" Florentino, artist   If you were forwarded this newsletter and would like to receive it, sign up here.  Market Moves by MUYAO SHEN   Bitcoin Traders Keep Buying the Dip, Blockchain Data Suggests   Bitcoin buyers may have bought the recent price dip and now are taking down their cryptocurrency from exchanges, blockchain data suggests. To digital-market analysts, it's a bullish signal traders or investors might be preparing to hold their BTC for the long term.   Net transfer volume from/to exchanges of bitcoin (Source: Glassnode) More than 1,365 BTCs were removed from cryptocurrency exchanges during the 24 hours through 12:00 UTC Thursday, the highest for a 24-hour period so far this year, according to the blockchain data firm Glassnode. The spike in withdrawals from exchange addresses came as the No. 1 cryptocurrency by market capitalization slumped on Thursday to near $50,000, from a high at $56,783.86 in the past 24 hours. "Today we have a new all-time high in BTC leaving the exchanges for 2021 and a new dip-buying prize to award," bitcoin analyst Willy Woo tweeted Thursday. Bitcoin's liquid supply change (Source: Glassnode) At the same time, more coins are being withdrawn to an illiquid status, separate blockchain data show. The monthly net change of supply held by liquid and highly liquid entities have pushed into deeply negative levels, to a degree not seen in three years, according to Glassnode. (See chart above.) That might be related to many investors' growing use of bitcoin as a hedge against inflation in the face of trillions of dollars of monetary stimulus pumped into global financial markets over the past year by central banks around the world. "The trend of coins withdrawn and locked away into long-term holding patterns is a direct response to the world's central bank response to 2020," Glassnode wrote in its newsletter earlier this month. "There still appears to be significant demand from long-term investors." --Muyao Shen   Read the original story here: Bitcoin Traders Keep Buying the Dip, Blockchain Data Suggests A message from Nexo Your digital assets deserve a savings account in their BEST INTEREST. Leading crypto lender Nexo treats you, your crypto and your fiat to industry-best Crypto & Fiat services, featuring:    * Up to 12% interest on digital assets, paid out daily! * Yields available on BTC, ETH, LTC, BCH, XRP, XLM, EOS, TRX, LINK, BNB, PAXG, USDT, USDC, TUSD, PAX, DAI, HUSD, GBP and EUR. * No minimum or maximum limits on funds deposited, offering infinite opportunities to earn. * #ZeroFees on all transactions. * Military-grade wallet security and top-tier insurance on all custodial assets with SOC 2 Type 2 certified crypto custodian BitGo. Get started at nexo.io Technician's Take by Damanick Dantes Bitcoin Rises From Oversold Levels, Resistance Around $56K   The oversold signal on Thursday preceded in a near 8% rise in bitcoin (BTC). The next level of resistance is around $55,000-$56,000 which could limit upside moves.   Hourly chart shows BTC oversold bounce within downtrend (Source: Trading View) Previous oversold signals on the hourly relative strength index (RSI) resulted in 5%-8% price recoveries. However, sellers have been active at key resistance levels this month. Bitcoin's uptrend continues to weaken after breaking below trend support on the four-hour chart. The hourly chart remains in a downtrend defined by lower price highs as traders continue to take profit from intraday recoveries. So far, buyers are defending support around $50,000. Additional selling pressure could stabilize around lower support at $42,000. --Damanick Dantes Original story found here: Bitcoin Rises From Oversold Levels, Resistance Around $56K BOLO Be on the look out for these upcoming events: 12:30 UTC (8:30 a.m. ET): U.S. Economic data Core inflation (estimate: 0.1%) Personal income (estimate: -7.0%) Consumer spending (estimate: -0.8%) 20:00 UTC (4:00 p.m. ET): Riot Blockchain (NASDAQ: RIOT) reports earnings. Consensus estimate is for ($0.08) per share.  Biggest Movers These are the biggest movers in the CoinDesk 20 over the past 24 hours:   Gainers: Orchid (OXT): +18.6% Cardano (ADA): +7.7% XRP (XRP): +7.1%     Losers:  None of the assets in the CoinDesk 20 is down in the past 24 hours   The CoinDesk 20 filters from the larger universe of thousands of cryptocurrencies and digital assets to define a core group of 20. These assets constitute roughly 99% of the market by volume at eight of the largest and most trustworthy exchanges. ICYMI In case you missed it, here's this past Friday's episode of "First Mover" on CoinDesk TV:   BTC Drops as $6B in Options Set to Expire, Market Analysis, Crypto Taxes Explained Covering today's top news in crypto markets: A record $6B of bitcoin options contracts set to expire tomorrow and how that's affecting BTC's price. Edward Woodford of Zero Hash joins our markets discussion. Plus, Jackson Hewitt's Mark Steber with crypto tax do's and don'ts. And more celebrities get on board with Lolli, the bitcoin rewards shopping app. We hear from CEO Alex Adelman. A message from NEM GROUP     Symbol from NEM, the next-generation public blockchain, launched March 15th, marking a milestone in NEM's vision for a new economic and digital system. Boasting enterprise-grade security and programmability, Symbol smooths business friction and increases the flow of data  to supercharge the creation, exchange and protection of assets. NEM Group - comprising NEM Software, NEM Trading, and NEM Ventures - nurtures a strong and healthy ecosystem to shape the development and future of blockchain technology for generations to come. Latest Headlines   Want to Buy a Tesla With Bitcoin? It Ain't Easy The difficulty underscores how even in a roaring bull market, crypto still struggles to gain widespread acceptance as a payment method. Binance Adds Former FATF Officers to Regulatory Strategy Team The former FATF officials will help steer Binance's global regulatory strategy, the exchange said. Your NFT Tax Questions, Answered If you've created or bought and sold an NFT for a profit over the last 12 months, chances are you probably owe tax to Uncle Sam. Shark Tank's O'Leary Says a Made in China Label on Bitcoin Keeps Some Funds Away "I have had many institutions tell me they do not want to own 'China coin'," he said. New Zealand Fund Manager Says It's Put 5% of Retirement Plan's Assets Into Bitcoin The KiwiSaver Growth Strategy Fund, which had NZ$350 million (US$244 million) in assets at the end of December, first began investing in crypto last October. Argo Blockchain, DMG to Launch Clean Energy Bitcoin Mining Pool Argo said "Terra Pool" will allow for the creation of "green bitcoin." A message from CoinDesk.tv Introducing Community Crypto, an intimate look at digital transformation   From the world leader in crypto news and events, the all-new CoinDesk TV covers the rapidly evolving world of digital finance and its role in the global economy. On Community Crypto, "Bitcoin and Black America" author Isaiah Jackson explores how crypto is creating and impacting communities. Jackson will organize virtual meetups in the U.S. and around the world, then dive deeper into key themes, issues or questions that arise.   Watch Community Crypto Thursdays at 5 p.m. ET on YouTube or CoinDesk.com. Disclaimer: The information presented in this message is intended as a news item that provides a brief summary of various events and developments that affect, or that might in the future affect, the value of one or more of the cryptocurrencies described above. The information contained in this message, and any information liked through the items contained herein, is not intended to provide sufficient information to form the basis for an investment decision. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments.  ATTENTION: Scammers have been sending fraudulent emails with links to sites disguised to look like coindesk.com. If you are in doubt about a link, type https://www.coindesk.com directly into your browser; do not copy and paste. Remember, if something seems too good to be true, it probably is. First Mover   A newsletter from CoinDesk   See Previous Editions Copyright © 2021 CoinDesk, All rights reserved.    250 Park Avenue South New York, NY 10003, USA You can manage your preferences here or unsubscribe from all CoinDesk email.

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