First Mover: Bitcoin Pullback Risk Rises as Whales Resume Selling

PLUS: Bitcoin Stabilizes After Pullback; Faces Resistance At $57K

Everything you need to make sense of the crypto markets and beyond By the CoinDesk Markets Team Edited by Lawrence Lewitinn, Managing Editor, Global Capital Markets May 11, 2021 Sponsored by     Bitcoin (BTC) -3.5%   $55,968 Ether (ETH)  +0.1%   $4,054 (Price data as of May 11 @11:00 UTC) If you were forwarded this newsletter and would like to receive it, sign up here.  Good morning. Here's what we're writing about: Market Moves: Bitcoin Pullback Risk Rises as Whales Resume Selling   Technician's Take: Bitcoin Stabilizes After Pullback; Faces Resistance At $57K   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: Gavin Michael, Bakkt CEO Dan Preston, Metromile CEO Biggest Movers These are the biggest movers in the CoinDesk 20 over the past 24 hours:   Gainers: Yearn Finance (YFI): +22.3%   Losers:  Stellar (XLM): -12.3% EOS (EOS): -7.5% XRP (XRP): -7.4% Tezos (XTZ): -6.7%   The CoinDesk 20 are 20 digital assets filtered from the larger universe of thousands of cryptocurrencies and constitute roughly 99% of the market by volume at eight of the largest and most trustworthy exchanges. Market Moves by Omkar Godbole Bitcoin Pullback Risk Rises as Whales Resume Selling Bitcoin (BTC)'s short-term prospects are looking a little bleak, with blockchain data pointing to renewed selling by "whales" – large investors with the ability to influence markets. The number of whale entities – clusters of wallet addresses held by a single network participant holding at least 1,000 bitcoin  – fell to a 5.5-month low of 1,943 on Monday, according to data provided by Glassnode. The metric has dropped by 60, or 3%, in the past five days, extending the decline from a record high of 2,237 on Feb. 7. Whale selling had eased off in the second half of April. "The data looks bearish, as it shows a clear trend of whales offloading their holdings," said Pankaj Balani, co-founder and CEO of the Singapore-based Delta Exchange. From October 2020 to February 2021, the number of whale entities had risen in lockstep with bitcoin's price, validating the narrative that the rally over that period was the product of increased participation by large investors. Hence, the divergence between the two metrics is a cause for concern for the bulls. Bitcoin: Number of whale entities continues to drop (Source: Glassnode) Bitcoin's price has been generally restricted to the $50,000 to $60,000 range since mid-March amid continued selling by whales. In other words, retail investors alone have been struggling to drive the rally. Recent market-wide price action suggests investor focus has shifted from bitcoin to ether (ETH) and other alternative cryptocurrencies (altcoins). While ether has more than doubled to record highs above $4,100 in the past two weeks, bitcoin has remained comatose below $60,000 and looks vulnerable to a deeper drop unless whales resume buying. Read the original story here:  Bitcoin Pullback Risk Rises as Whales Resume Selling 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 Stabilizes After Pullback; Faces Resistance At $57K Bitcoin (BTC) is stabilizing after a near 7% drop on Monday as buyers continue to take profit. The cryptocurrency could see further upside towards resistance at $57,000.   The broader uptrend remains intact despite several months of consolidation. Sharp price moves are typical during consolidation phases which can result in frequent drawdowns. Hourly bitcoin chart shows support and resistance levels with RSI (Source: TradingView) The relative strength index (RSI) on the hourly chart registered an oversold reading after Monday's decline, which suggests a brief price recovery is underway. Bitcoin held support around $54,000 along a series of higher price lows over the past few weeks. Resistance is seen around the 100-period moving average on the hourly chart around $57,000 which could limit price gains. Bitcoin has traded in a range between $53,000 and $59,000 as buyers struggle to retrace the April 14 sell-off. Original story found here: Bitcoin Stabilizes After Pullback; Faces Resistance At $57KBitcoin Stabilizes After Pullback; Faces Resistance At $57K A message from CME Announcing CME Micro Bitcoin Futures (MBT) : Ready for Trading  Tap into the precision of a smaller-sized Bitcoin contract At 1/10 the size of one bitcoin, MBT futures provide an efficient, cost-effective way to fine-tune bitcoin exposure and to enhance your trading strategies. Enjoy the features of Bitcoin futures, but in a smaller size that gives active traders more choices for managing bitcoin price risk. BOLO Be on the look out for these upcoming events: 14:00 UTC (10:00 a.m. ET): U.S. job openings (March). Forecast: 7.5 million. A message from CoinDesk Unlocked 101 at Consensus by CoinDesk 2021   The countdown is on to Consensus by CoinDesk, our virtual big-tent event this May.   For those who need a primer or to brush up on the fundamentals, we're hosting Unlocked 101, a free educational series designed to give you the tools you need to navigate crypto.   Sessions run May 4–20, covering the basics of Bitcoin, DeFi, scams and hacks and the NFT boom.   Register for Unlocked 101. ICYMI In case you missed it, here's the most recent episode of "First Mover" on CoinDesk TV:   Ether's Record-breaking Rally; the Musk Effect, What Crypto Means to Latin America Top cryptocurrencies are a sea of green as observers ponder a new Dogecoin mystery: Why did the meme crypto suddenly crash and recover? Igor Telyatnikov of exchange software provider AlphaPoint joins our markets discussion. Plus, Mexico-based crypto exchange Bitso, the first crypto unicorn in Latin America, on what's driving crypto demand in that part of the world. Unstoppable Domains has announced integration with another browser. Co-founder Brad Kam discusses the new blockchain-based domain model. Latest Headlines Cboe Kicks Fidelity-Linked Bitcoin ETF Application to SEC The SEC has 45 days to make an initial decision on this application. Card-Based Digital Yuan Wallet Manufacturer to Use Fingerprint ID Tech The new digital yuan wallet will require users' biometric information to enable payments. Bloomberg Analyst 'Optimistic' on US Bitcoin ETF This Year ETF analyst Eric Balchunas thinks a U.S bitcoin ETF could follow on the heels of successful launches in Canada. Indonesia Considers Levying Tax on Crypto Trading The move is being contemplated as a way to bolster the country's revenues amid COVID-19, according to a tax official. Elon Musk Runs Twitter Poll on Whether Tesla Should Accept Dogecoin The overwhelming majority have been replying "Yes." Revolut Taps Blockchain Tools from Crypto Compliance Firm Elliptic The partnership means Revolut customers' crypto transactions will be recorded on the blockchain for the first time.   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. 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