15 January 2021 | ZebPay Trade-Desk
BTC has opened the floodgates for crypto money flow, currently at $37,000 levels. ETH and other altcoins have followed suit. Let’s look at what we have in store for a trade set-up.
Bitcoin (BTC) Technical Analysis and Chart:
At the time of writing, Bitcoin is trading around $37,800 reflecting a gain of 3.5% approximately over the period of 24-hours.
Bitcoin has managed to keep the faith of its “Holders” and despite a sharp correction of more than 20% in the previous week, the bulls in the game have still kept the largest digital asset by market cap closing back to its ATH’s.
As we mentioned in our last weekly report that we were bullish on BTC but we also suggested to remain cautious as we were expecting corrections to happen at higher levels.
This was in line with what we depicted as last week BTC made a high of $41,986 and then it corrected sharply and made a low of $30,100. Looking at the Daily chart we saw a bearish harami pattern (a reversal candlestick pattern) on Jan 9 2021. BTC is trading in a broadening formation channel (loudspeaker), after touching the lower trendline of the channel it took the support and bounced. Hence remain bullish on BTC. However, analysis will be negated if it closes and trades above all the support levels.
As the institutional flows keep getting better and better, the picture over the long term is very positive, tactically $32,300 & $28,650 are acting as good support, and dips accumulation remains an attractive strategy.
Ethereum (ETH) Technical Analysis and Chart:
At the time of writing, Ethereum is trading around $1188 reflecting a gain of 7.5% approximately over the period of 24-hours.
Just like BTC, ETH has surpassed its long held resistance levels, and we have seen a constant fresh influx of money pouring into this second highest digital asset by market capital. The investment world is paying more attention to ETH along with BTC on account of the constant development within the space and growing interest being the second largest by market capital.
We saw a massive rally in ETH, as prices almost doubled in fifteen days. Last week after making the high of $1,351 (just shy from its lifetime high of $1,424) immediately followed by a sharp correction to ~$900.
On the technical front, ETH is still trading in an upward channel as shown in the chart. It will face a strong resistance at $1,265 and $1,424 levels. For further rally it needs to break these strong resistance levels with good volumes.
Basic Attention Token (BAT) Technical Analysis and Chart:
At the time of writing, BAT is trading around $0.2391 reflecting a loss of about 9.5% approximately over the period of 24-hours.
BAT has successfully exited the long bearish trend it had formed in the last month as the prices carried an upward momentum upto the price of $0.29.
BAT is trading in a broad range of $0.1945 to $0.2887. However, on a weekly chart we can see it is taking support of the trendline but the resistance is quite evident and for further upside it needs to break the resistance convincingly.
We see the Bears getting active at $0.29 levels and hence, once it breaks and closes above this level, we anticipate BAT to touch and possibly even beat previous highs of $0.44 with Bulls taking the control over the asset which is an economic fuel to a decentralized browser.
Having said that, we tilt to the longer bullish side once the resistance of $0.29 is breached. Analysis will be negated if price closes above the recent high.
USDT-INR Technical Analysis and Chart:
At the time of writing, USDT-INR is trading around 78.10 reflecting a profit of about 3.50% approximately over the period of 24-hours.
In the Indian market, the USDT-INR pair shares an interesting relationship with its underlying asset, that is the USD-INR pair in the forex market. The pair typically operates with a 2-10% premium, compared to its traditional counterpart, depending on the market dynamics and movement in the BTC-USD and ETH-USD pairs. Conversely, traders tend to liquidate the stablecoin when prices of digital assets are slumping, forming the reason for this inverse relationship. The USDT-INR pair has been largely range bound, between $76-$80. We can see USDT is constantly taking support at $77 levels, we anticipate further downside movement once it breaks this support. The next support level is at $75.The pair trades at a premium of ~5%, as of now.
Fundamentally, on the USD front there is a barrage of news battering the USD price, be it vaccination in the UK or USA, or extending the timeline for USD FIMA repo or Swap lines with foriegn central banks. Moreover, the tide seems to have settled, with the US presidential elections fiasco coming to an end, and Biden being officially declared the US President. Much of these inputs seemed to have been priced in as USD has shown good resilience and stability, and hence we remain slightly bearish on the pair, though we still anticipate the range bound trends of the market to continue here in the near term.
Weekly Trade Summary Sheet:
Weekly Price Analysis:
| USD ($) | 07 Jan 21 | 14 Jan 21 | Previous Week | Current Week | |||
| Close | Close | % Change | High | Low | High | Low | |
| BTC | $39,371.040 | $39,187.330 | -0.47% | $40,180.370 | $28,722.760 | $41,986.740 | $30,100.860 |
| ETH | $1,225.680 | $1,218.450 | -0.59% | $1,282.520 | $718.110 | $1,350.930 | $923.920 |
| BAT | $0.257 | $0.246 | -4.32% | $0.282 | $0.204 | $0.295 | $0.202 |
Weekly Volume Analysis:
| Cryptocurrency | 1w – % Vol. Change (Global) |
| BitCoin (BTC) | 13.02% |
| Ethereum (ETH) | 6.55% |
| Basic Attention Token (BAT) | 20.13% |
Weekly Price Pointers:
| Resistance 2 | $42,219 | $1,424 | $0.3705 |
| Resistance 1 | $41,986 | $1,265 | $0.2888 |
| USD | BTC | ETH | BAT |
| Support 1 | $32,300 | $979 | $0.2224 |
| Support 2 | $29,891 | $838 | $0.1950 |
Market Updates:
- From Asia to Europe, major central banks all around the world are expected to announce their own digital currencies soon.
- DOT is on fire today as it surges up the market cap charts to fourth spot.
- Analysts predict Ether may soon hit a new all-time high after ETH reserves on centralized exchanges fell by 27% in two days.
- Average weekly inflows into Grayscale’s products hit $250.7 million in the fourth quarter, capping off a stellar year for the asset manager.
*Sources of charts: https://cryptowat.ch, https://pro.zebpay.com/trade/USDT-INR
Disclaimer : This report is not intended to be relied upon as advice to investors or poteial investors and does not take into account the investment objectives, financial situation or needs of any investor. All investors should consider such factors in consultation with a professional advisor of their choosing when deciding if an investment is appropriate. The Company has prepared this report based on information available to it, including information derived from public sources that have not been independently verified. No representation or warranty, express or implied, is provided in relation to the fairness, accuracy, correctness, completeness or reliability of the information, opinions or conclusions expressed herein. This report is preliminary and subject to change; the Company undertakes no obligation to update or revise the reports to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events. Trading & Investments in cryptocurrencies viz. Bitcoin, Bitcoin Cash, Ethereum etc.are very speculative and are subject to market risks. The analysis by Author is for informational purposes only and should not be treated as investment advice.
