3 Things to Watch for Before Calling a Bitcoin Bottom

PLUS: Bitcoin's support lowers to $36K

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 June 15, 2021 Sponsored by     Bitcoin (BTC) +1.6%  $39,941 Ether (ETH)  +3.7%   $2,579 (Price data as of June 15 @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: Three Things to Watch for Before Calling a Bitcoin Bottom Technician's Take: Bitcoin Stalls at Resistance; Lower Support at $36K Check out the CoinDesk TV show "First Mover," hosted by Christine Lee, Lawrence Lewitinn and Emily Parker at 9:00 a.m. U.S. Eastern time. Today the show will feature guests: Darell Duffie, Stanford Graduate School of Business Professor of Finance Mannik Dhillon, Victory Solutions President Matt James, BlockFi Partner & former "Bachelor" Biggest Movers These are the biggest movers in the CoinDesk 20 over the past 24 hours:   Gainers: Polkadot (DOT): +14.3% Chainlink (LINK): +11.2% Litecoin (LTC): +5.0% Losers: The Graph (GRT): -1.2% Aave (AAVE): -0.8%   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 Three Things to Watch for Before Calling a Bitcoin Bottom While bitcoin (BTC) sees signs of life after a month of dashed hopes, experts warn it may be too early to call a resumption of the broader bull run.    Macro and crypto-specific factors including the impending Federal Reserve (Fed) meeting, bitcoin's dominance rate, and technical charts warrant caution on the part of the bulls.    1) Fed fears   The Federal Open Market Committee (FOMC) is scheduled to meet on Tuesday and Wednesday to discuss policy. Fed Chairman Jerome Powell will hold a press conference following the meeting at 2 p.m. ET on Wednesday.   While the central bank is likely to keep key policy tools unchanged, some analysts are concerned the bank may strike a slightly less dovish tone in the wake of rising inflation.    Any hint of early taper or rate hike could trigger risk aversion in financial markets, killing the nascent bitcoin recovery. Alternatively, a strong-worded commitment to keep the tap open would bring cheer to bitcoin and asset prices in general.    2) Bitcoin dominance rate   A sustained uptick in bitcoin's dominance rate – the top cryptocurrency's share in the total market capitalization – is needed to confirm a trend reversal higher.    That's because the largest cryptocurrency by market value is usually the first to rally, followed by alternative cryptocurrencies (altcoins). In other words, money enters the crypto world through bitcoin, as seen in October 2020, and moves to altcoins.    The dominance rate remains below 50% at press time, having peaked above 70% in early January, according to TradingView. According to analysts at JPMorgan, that bitcoin's share is still quite low is a bearish sign.    Bitcoin dominance rate (Source: TradingView) 3) Key resistance still intact   While bitcoin has charted an impressive relief rally to $40,000, it has yet to clear key price hurdles that could pave the way for bullish revival.   Bitcoin: $41,000 hurdle still intact (Source: TradingView) Bitcoin briefly topped $41,000 on Monday before falling back to under $40,000, CoinDesk 20 data show.   Social media chatter suggests some in the investor community are focused on the 200-day simple moving average (SMA) hurdle, currently lined up at $42,604.    Per Pankaj Balani, CEO of Delta Exchange, the recent recovery from lows near $30,000 might be a short-term respite. "The bounce might extend to $45,000 levels, but upside looks limited here, and we expect to see more selling come through at those levels," Balani said in a WhatsApp chat.    Read the original story here: Three Things to Watch for Before Calling a Bitcoin Bottom 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, CMT Bitcoin Stalls at Resistance; Lower Support at $36K Bitcoin (BTC) approached resistance around $41,000 on Monday, which triggered some profit taking. The month-long range is still in effect as short-term overbought signals limit upside moves. Initial support is seen around $36,000 which could stabilize a brief pull-back.   Bitcoin was trading around $40,000 at press time and is up about 2% over the past 24-hours. Bitcoin four-hour chart shows support and resistance levels with overbought RSI (Source: TradingView) The relative strength index (RSI) on the four-hour chart reached overbought levels on Sunday shortly after the near 6% price jump on Sunday. The previous overbought signal on the RSI occurred on June 3 which preceded a near 20% sell-off towards the $30,000 support zone. There is strong resistance at $41,000 which has capped upside moves over the past month. However, the short-term trend is improving as the daily chart advances from oversold levels. This means the corrective phase from May has stabilized as traders await confirmation of a breakout or breakdown from the current range. Read the original story here: Bitcoin Stalls at Resistance; Lower Support at $36K A message from Kaiko   Kaiko is the premier cryptocurrency market data provider for professional traders and enterprises.  Highly-granular historical and live data: Tick-level trades, order book snapshots, aggregates, reference rates and more.  Extensive coverage: 100+ spot and derivatives exchanges Flexible data delivery: Downloadable CSV files and robust REST and WebSocket APIs designed for enterprise-use. On-call support: Private slack channels, SLA's and integration assistance.  Request a trial, browse our data dictionary, and subscribe to our weekly research newsletter today!    Learn More BOLO Be on the look out for some of these upcoming events:   12:30 UTC (8:30 a.m. ET):  Retail Sales (May). Est: -0.7% Ex-auto Est: +0.5% Producer price index (May). Est: +0.5% The cryptocurrency movement has never been so sprawling, reaching every corner of the planet. Crypto State by CoinDesk aims to connect with local communities to explore this movement of financial disruption and how it trickles down to every corner of the globe, from DeFi investment opportunities to alternative ways to transact and store wealth. We're making virtual stops with audiences in Nigeria, the Middle East and Southeast Asia this year. Register for the Crypto State virtual tour. ICYMI In case you missed it, here are the most recent episodes of "First Mover" on CoinDesk TV:   Will Crypto Be Embraced in Colombia?; Did Musk Move the Markets Again? Following El Salvador's historic move to make bitcoin legal tender, an adviser to Colombia's president says his nation is ready to embrace decentralized finance. That adviser, Jehudi Castro Sierra, joins "First Mover" to discuss the impact of crypto innovation in Colombia and, more broadly, in Latin America. Genesis Volatility CEO Greg Magadini with markets analysis following yet another tweet by Elon Musk regarding bitcoin and CoinDesk's Nikhilesh De looking ahead to this week's Federal Reserve meeting. Unlocked Encore! Now What Do I Do With $DESK?   During Consensus 2021, CoinDesk experimented with launching its own Ethereum-based rewards token $DESK, and the excitement to snag airdrops and acquire NFTs with it was unreal.   Running on the Rinkeby testnet, the token offers a way for people to play with the technology without the fear of losing their life savings or the inconvenience of high gas fees.   On Friday, June 18, Join Colin Platt, CEO of Unifty, the NFT infrastructure provider that built $DESK, and Bailey Reutzel, $DESK Piranha Mama herself, for this Unlocked interactive hour exploring all the things you can do with $DESK and your NFTs now that the conference is over.   Register free for Unlocked Encore! Now What Do I Do With $DESK? and stay tuned on $DESK's Telegram group for updates. Latest Headlines   DeFi Projects Continue Flocking to Layer 2 Solution Polygon Polygon's cheaper transaction costs and faster block time have driven increased adoption by a number of major projects. 6 Insurers Initiate New Cryptocurrency Investment Positions: Report Insurance firms have increased their interest in crypto investments in recent months. Coinbase Hires Former SEC Alum to Lead Exchange's Capital Markets Legal Work Coinbase has been on a recruiting drive, adding new hires from some of the world's largest companies.   ASUS Launches RTX 3070 Series Cards With Feature Limiting Ether Mining LHR is the industry's answer to the global supply shortage of GPUs caused by miners hoping to cash in on bull market fervor. Switzerland's Sygnum Bank Gets Into DeFi Custody and trading services for DeFi tokens is the first step, to be followed by a suite of yield-generating products.   Hedge Funds See 7.2% of Assets in Crypto by 2026: Report That asset allocation equates to about $312 billion across the sector. UK Crypto Startup Ramp Raises $10M Ramp brands itself as the "PayPal for crypto" service.   We've launched on Snapchat. On our debut show, "CoinDesk Breaks It Down," we distill the noise around dogecoin, the energy debate and more. Follow for original content, twice weekly. 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. 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