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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

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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At the same time, more coins are being withdrawn to an illiquid status, separate blockchain data show.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"The trend of coins withdrawn and locked away into long-term holding patterns is a direct response to the world's central bank response to 2020," Glassnode wrote in its newsletter earlier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

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Bitcoin Traders Keep Buying the Dip, Blockchain Data Suggests

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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

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.

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.

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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."

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.

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