First Mover: Bitcoin Eyes Bull Revival as Dip Below $54K Wipes Out Millions More in Leverage

PLUS: Bitcoin Holds Short-Term Support at $54K, Resistance Seen at $58K: Technical Analysis

March 16, 2021 Everything you need to make sense of the crypto markets and beyond Sponsored By: By the CoinDesk Markets Team Edited by Lawrence Lewitinn If you were forwarded this newsletter and would like to receive it, sign up here.  Bitcoin (BTC) -0.8%  $55,984 Ether (ETH)  +1.2%   $1,800 (Price data as of Mar. 16  @11:00 UTC) Good morning. Here's what we're writing about: Market Moves by Omkar Godbole: Bitcoin Eyes Bull Revival as Dip Below $54K Wipes Out Millions More in Leverage Technician's Take by Damanick Dantes:  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: Gary Vaynerchuk, CEO of Vayner Media and Consensus by CoinDesk keynote speaker Kris Marszalek, CEO of Crypto.com Metakovan, cofounder of Metapurse and buyer of Beeple's $69.3 million "Everydays: The First 5,000 Days" NFT MARKET MOVES by OMKAR GODBOLE Bitcoin Eyes Bull Revival as Dip Below $54K Wipes Out Millions More in Leverage Bitcoin has erased the losses from its latest price dip and could soon see more gains as normalcy returns to the derivatives market.   Having hit a low of $53,350 during the Asian hours the cryptocurrency is trading 1% higher on the day near $56,200 at press time, according to CoinDesk 20 data. Selling pressure faded near the widely tracked monthly volume-weighted average price (VWAP) of $53,000.   The market now looks ready for a fresh move higher, as the bitcoin perpetual futures funding rate – the cost of holding long positions calculated every eight hours – has dropped sharply from 0.124% to 0.08% after excess bullish leverage was wiped out by the cryptocurrency's pullbacks Monday and Tuesday. Bitcoin's average perpetuals funding rate (Source: Glassnode)   Long trades worth $1.16 billion were liquidated on Monday, the most since Feb. 22, according to data provider Coinalyze. And with today's drop, another $368 million-worth were liquidated by major exchanges.   With the lower funding rate, a more sustained move toward record highs could be seen – more so, as global stocks continue to rally with risk sentiment being supported by fundamentals, according to a tweet from Holger Zschaepitz, a markets commentator and economics author.   Further, many U.S. citizens scheduled to receive $1,400 stimulus checks this week could invest part of the cash received into bitcoin, boosting its price. As per a Mizuho Securities survey, nearly $40 billion of the latest round of stimulus checks could be spent on bitcoin and stock purchases.   Technical charts are also suggesting scope for a price bounce. Bitcoin's hourly chart (TradingView)   The 14-hour relative strength index (RSI), a momentum indicator, formed a higher low early today, decoupling from the downtrend in prices. That "bullish divergence" indicates the pullback has run out of steam.   That said, fresh chart-driven selling may be seen if the cryptocurrency drops below the monthly VWAP support at $53,000. --Omkar Godbole   Read the original story here: Bitcoin Eyes Bull Revival as Dip Below $54K Wipes Out Millions More in Leverage SPONSORED BY 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 Holds Short-Term Support at $54K, Resistance Seen at $58K Bitcoin (BTC) buyers defended short-term support around $54,000 but will face heavy resistance around $58,000. On the 4-hour chart, bitcoin is now the most oversold since the February 28 low around $42,900, which preceded a near 40% price rally. Chart shows trend support on the 4-hour chart, with an oversold RSI (Source: TradingView) The long-term trend is still weakening, defined by lower highs on the relative strength index (RSI), which was noted on the daily price chart. Slowing upside momentum indicated profit taking around the $60,000 price level, as expected in earlier posts. For now, bitcoin will need to hold above the $54,000 level to sustain its uptrend on the 4-hour chart. If bitcoin breaks this level, lower support is seen around $50,000 and then $46,000. --Damanick Dantes Original story found here: Bitcoin Holds Short-Term Support at $54K, Resistance Seen at $58K: Technical Analysis BIGGEST MOVERS These are the biggest movers in the CoinDesk 20 over the past 24 hours:   Gainers: XRP (XRP): +9.3% Cosmos (ATOM): +8.5% EOS (XRP): +5.2%   Losers:  Algorand (ALGO): -6.3% Litecoin (LTC): -1.4% Bitcoin (BTC): -0.8%   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 is yesterday's episode of First Mover:   Kevin O'Leary of 'Shark Tank' Reveals Plans to Invest in Ethical BTC Mining; Developments in the Mt. Gox and Ripple Cases Bitcoin skeptic turned believer Kevin O'Leary says he has a solution to bitcoin provenance concerns: invest in environmentally responsible BTC mining in preferred countries. Here's how he plans to capitalize on this idea. Plus, Senior Reporter Omkar Godbole with crypto markets analysis, and a Mt. Gox update from a former plaintiff, U.S. securities attorney Jonathan Dunsmoor. SPONSORED BY 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 Preston Byrne: 5 Legal Considerations When Dealing in NFTs Just because securities laws might not apply doesn't mean other laws won't, says our columnist.     The Brooklyn Bridge Is Actually for Sale, an NFT of It Anyway Someone is auctioning the rights to a digital image of the iconic New York bridge, in an apparent homage to a 20th-century swindler. Half the proceeds would go to charity.     BitMEX Founder Ben Delo Surrenders to US Authorities Delo was released on a $20 million bond.     Nobody Saw Inflation Coming in the 1960s, but It Could Be Back: Economist Very few of today's bond portfolio managers and traders can remember the last inflation shock, but that does not make a new shock less likely.     Cryptocurrency Fund Flows On Track for Record Quarter Investor flows into cryptocurrency investment funds is on track for a record quarter, according to CoinShares.     Texas Securities Regulator Issues Emergency Order Against Binance Impersonator "The pitch is relatively simple – invest a little, gain a lot, and don't worry about risk," the Texas State Securities Board said.     Crypto Has Another Unicorn as Bitpanda Raises $170M at $1.2B Valuation The investment platform's hefty valuation marks it out as Austria's first unicorn startup.     Crypto Bank Sygnum Offering Yield on Its Swiss Franc Stablecoin The licensed Swiss firm claims to be the first regulated bank to offer returns on its own stablecoin.   Introducing Coin Toss, debating the future of money on CoinDesk TV   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.   Hosted by CoinDesk Podcasts Managing Editor Adam B. Levine, Coin Toss sets the stage for debate between guests with opposing views on policy and regulation, privacy and data integrity, fraud and crime and more.   Watch Coin Toss Wednesdays at 10:30 a.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.