First Mover: Bitcoin, Ether Bounce After Disastrous Week for Crypto Market

PLUS: Bitcoin Holds Short-Term Support; Faces Resistance At $40K

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 24, 2021 Sponsored by     Bitcoin (BTC) +3.8%  $36,478 Ether (ETH)  +6.8%   $2,263 (Price data as of May 24 @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, Ether Bounce After Disastrous Week for Crypto Market   Technician's Take: Bitcoin Holds Short-Term Support; Faces Resistance At $40K   Check out the CoinDesk TV show "First Mover," hosted by Christine Lee, Lawrence Lewitinn and Emily Parker, at 8:30 a.m. U.S. Eastern time. Today the show will feature guests: Rumi Morales, Outlier Ventures Partner Then be sure to catch a special edition of First Mover at 11:00 a.m. ET featuring guests: Gavin Wood, Polkadot CEO Gov. Mark Gordon (R-WY) Tommaso Mancini-Griffoli, IMF Deputy Division Chief  Tom Kysar, Augur Director of Operations   Biggest Movers These are the biggest movers in the CoinDesk 20 over the past 24 hours:   Gainers: Stellar (XLM): +21.9% Chainlink (LINK): 18.5% Yearn Finance (YFI): 14.0% Cardano (ADA): 12.4% Aave (AAVE): 12.0% The Graph (GRT): 9.0% Losers:  None of the assets in the CoinDesk 20 is down over the past 24 hours.   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, Ether Bounce After Disastrous Week for Crypto Market The crypto market is witnessing a relief rally on Monday, as bargain-hunting helps major coins regain some poise following last week's drubbing.   Bitcoin, the top cryptocurrency by market value, is changing hands near $36,500 at press time, representing a 5% gain on the day. The rise comes after a 25% decline over the week ended May 23 – the second straight weekly loss and the biggest since March 2020, per CoinDesk 20 data.   Ether, the second-largest cryptocurrency, is trading 8% higher at $2,257 (up 7.6%), having dropped by 41% over the same period – its most significant weekly decline on record.   Other prominent coins like Binance's BNB token, internet computer protocol, bitcoin cash, polkadot are seeing 8–10% gains. Coins associated with decentralized finance (DeFi) such as LINK and UNI are trading 22% and 13% higher, respectively.   Demand from wealthy investors looks to have brought relief to the battered cryptocurrencies.    Bitcoin fell to a 3.5-month low of $30,000 last week, marking a 53% drop from the record high of $64,801 reached on April 14. Meanwhile, ether fell to below $2,000.   The downturn was largely the result of selling by "weak hands" and short-term traders. "From the end of April until now, wallet addresses holding bitcoin for less than one month dropped from 5.06 million addresses to 4.37 million, a loss of 690,000," the Defiant Newsletter said on May 18.   However, the number of addresses holding bitcoin for more than one year, dubbed as "holders" by IntoTheBlock, increased by 120,000 from 21.81 million to 21.93 million.   Bitcoin holders: Address holding coins for atleast a year (Source: IntoTheBlock) Moving ahead, a V-shaped recovery to $50,000 and higher may remain elusive, as the recent sell-off has shaken investor confidence. Moreover, according to some observers, the market may soon receive more negative news out of China. On Friday, a top Chinese governmental body called for a crackdown on cryptocurrency mining, amplifying regulatory concerns.   Some industry experts believe the negative news has been priced in, and the psychological support at $30,000 is likely to hold.     Read the original story here: Bitcoin, Ether Bounce After Disastrous Week for Crypto Market   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 Holds Short-Term Support; Faces Resistance At $40K Bitcoin (BTC) remained under pressure over the weekend as traders react to China's latest news to tighten crypto regulation. The cryptocurrency is down about 36% month-to-date and was trading around $37,000 at the time of writing. Price recoveries should remain limited to $40,000 as the broader uptrend weakens.   Slowing momentum has been the dominant theme this year as bitcoin failed to maintain all-time highs. Long term sell signals were in place before headlines accelerated price declines, which preceded a gradual and then sudden capitulation of long positions. Four-hour bitcoin chart shows short-term support and resistance levels with RSI (Source: TradingView) The relative strength index (RSI) on the four-hour chart has struggled to break above neutral over the past week. In a downtrend, oversold readings can persist for extended periods, which suggests a lack of significant support levels. Bitcoin re-tested minor support around $30,000 over the weekend, but stronger support is seen around $27,000. BTC is trading below the 100-day moving average and the correction does not appear exhausted at current levels. This means sellers should remain active as bitcoin struggles to break above $40,000. Original story found here:     A message from ErisX ErisX's customers trade crypto without sacrificing security, transparency or the benefit of market oversight. Choose from our Trading UI, Websocket API, or our Algo Machine ™ to automate your trading strategies without having to write code. Algo features include "pegged order" and "order-on-fill". Reduce your trading costs with industry-low trading fees and instant rebates for passive order flow. Sign up for our weekly newsletter. Less Fees.More Bitcoin. BOLO Be on the look out for some of these upcoming events at Consensus 2021:   13:00 UTC (9:00 a.m. ET) Special Address by Dr. Lael Brainard We're honored to be joined by Dr. Lael Brainard of the Federal Reserve Board of Governors. She will give an address discussing her latest thinking on the topic of digital currencies and will take questions from Michael Casey, CoinDesk's chief content officer.   13:30 UTC (9:30 a.m. ET) First Principles: Ray Dalio on Money, Monetary Policy and Bitcoin As the founder of Bridgewater Associates, the largest and most successful hedge fund of all time, Ray Dalio's thoughts on money, markets, economics and socio-political trends are sought after by leaders of business and government worldwide. Dalio will join us to offer his newest thinking on the future of money and monetary policy in the post-COVID environment. He will also share his evolving views on how disruptive assets such as bitcoin might fit into the global financial system that will emerge from this moment.   14:30 UTC (10:30 a.m. ET) Store of Value Generation: Psychology, Collecting and Non-Fungible Tokens Well before he got into wine and other collectibles, Gary Vaynerchuk's first childhood hustle was collecting and trading sports cards. Today, he's become a prominent proponent of NFTs as a store of value asset and engagement medium. He joins Joe Pompliano, author of the Huddle Up sports business newsletter, to discuss the psychology behind digital collecting and how it applies to sports and beyond. A message from CoinDesk This Week at #Consensus2021 Will bitcoin continue to pump? Is a pullback around the corner? Is ether a better way to position? This week at Consensus by CoinDesk, our virtual big-tent conference, we help investors hone their skill sets with trading and yield generation strategies. investment theses and market intelligence and get up to speed on crypto market developments. Join our Explorations track "Trade Secrets," sponsored by Bitstamp, with Philip Gradwell of Chainalysis, Matthew Roszak of Bloq, Darius Sit of QCP Capital and more at Consensus by CoinDesk, running to May 27. Register today. ICYMI In case you missed it, here's the most recent episode of "First Mover" on CoinDesk TV:   Crypto Markets Stabilize; Who's Buying and Who's Selling? The most critical topics in the crypto and blockchain discussions come to the forefront as this year's Consensus by CoinDesk virtual conference kicks off Monday. Our "First Mover" hosts highlight the keynotes and sessions that they and much of the crypto world will be watching, including presentations by Ray Dalio of Bridgewater Associates, Dr. Lael Brainard of the Federal Reserve, Former Treasury Secretary Lawrence Summers and ARK Invest's Cathie Wood. Also, joining the show to discuss the latest markets and business news are Bittrex Interim CEO Stephen Stonberg, QCP Capital CEO Darius Sit, and a special appearance by Danny Green of the Philadelphia 76ers with his NFT story. Latest Headlines   South Korea's Central Bank to Choose Supplier for Digital Currency Pilot The Bank of Korea is looking for a technology supplier to explore a digital currency in a test environment. CoinShares First-Quarter Earnings More Than Quadruple The Nasdaq-listed digital asset manager reported a year-on-year increase in comprehensive income of $34.9 million.     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 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.