23 April 2021 | ZebPay Trade-Desk
Bitcoin has been quite volatile this week, trading in the range of $48,500 – $63,000. After it hit a new ATH last week of $64,899, the asset has seen a rather significant correction. Ether has been volatile too, first witnessing a correction and rallying to a new ATH of $2,641, and falling again since, and now trades in the range of $2,100 – $2,300. Altcoins have also witnessed a correction since hitting ATH’s last week, namely both BAT and BNB, but in both cases volumes have held up well. Let us see what these coins have in store for us, and what we anticipate might happen over the next week.
Bitcoin (BTC) Technical Analysis and Chart:
At the time of writing, Bitcoin is trading around $48,800 reflecting a loss of about 10% approximately over the period of 24-hours.
BTC saw a correction this week, but prior to that it rallied upward and made a new ATH last week, crossing the $64,000 mark for the first time. The correction was set in due to Turkey’s ban on using BTC as a mode of exchange. BTC has been range-bound towards the later part of the week between $49,500 and $54,000. As corporate, FI’s, banks, and government continue to recognise the asset as an investment opportunity and adopt more of it, the asset is likely to only benefit and gain in value here on. Hence, from a longer-term perspective, the asset remains very attractive.
As we mentioned in our last week’s report, BTC has made a red body Spinning Top which indicated uncertainty at higher levels. This week as we can see from the daily chart above, the asset is making a lower top and lower bottom formation and has corrected almost 25% from its peak and made the weekly low of $48,500. The prices are trying to take support at 100 EMA (exponential moving average). If the asset starts trading below the 100 EMA levels we can see the prices go further down up to the next support levels which are at $43,000 levels.
Ethereum (ETH) Technical Analysis and Chart:
At the time of writing, Ethereum is trading around $2,200 reflecting a loss of about 8% approximately over the period of 24-hours.
In the first half of the week, ETH too witnessed a correction and fell back to $2,100 levels. However, since then, it has rallied, and once again hit a new all-time high of $2,641, but another correction seems to have come again. The sentiment continues to remain bullish, with both the protocol upgrade in sight, but also the growing investor interest in the asset class. In addition, Canada’s ETH ETF launch also contributed to the rally ETH witnessed later in the week. Buyers have historically held on to their assets, even when prices have dipped, suggesting the fundamental belief in the asset, thanks to its wide applicability in the DeFi space, coupled with the significantly lower cost of acquisition compared to its counterpart BTC.
As we can see from the daily chart above, that last week ETH gave a minor correction post making a new high and the prices fell to $1,930 which was a crucial support level (mentioned in our last week’s report). Bulls looked at it as an opportunity and took charge and this week the asset made a new all-time high of $2,642 giving an almost 36% rally. Post this feat, ETHagain corrected around 19% after making a new top. On a technical front, ETH is trading in an uptrend and every dip is seen as an accumulating opportunity.
Hence, we continue to remain bullish on the asset until and unless it breaks the support level of $1,930 and trades below that.
Basic Attention Token (BAT) Technical Analysis and Chart:
At the time of writing, BAT is trading around $1.01 reflecting a loss of about 15% approximately over the period of 24-hours.
BAT has been on a bull run, ever since it marked the $1bn market capitalization milestone. Last week the asset hit a new ATH, but it has witnessed a correction since and has fallen by about 45%. Volumes have seen a significant boost during this period, indicating that bulls are taking control and acquiring the asset, as soon the asset consolidates towards its support level. Brave Browser continues to attract subscriptions adding to a larger retail base, the asset will continue to significantly appreciate, and coupled with the fact that it remains an asset undervalued to its utility, one can acquire at current price levels as it remains a highly attractive proposition for long term investors.
As we can see from the daily chart above, BAT has corrected almost 45% from its peak and made the low of $0.8716 this week. On a technical front, the asset after consolidating near the highs gave a breakout on a downside and started making a ‘Lower Top Lower Bottom’ formation. Bat has tested a support level of $0.924 (50% Fibonacci retracement level) and if the asset sustains these levels, we can see some pullback in the prices.
We can see further downside movement if the prices trade and sustain below $0.924 levels.
Binance Coin (BNB) Technical Analysis and Chart:
At the time of writing, BNB is trading around $470 reflecting a loss of about 15% approximately over the period of 24-hours.
BNB started on a high this week and then witnessed a correction. On April 12, Binance coin (BNB), the native token for cryptocurrency exchange Binance, set a new all-time high of $638. Post this, we saw a BNB burn, which did not impact prices much, in fact, the coin followed suit behind BTC and ETH, and saw prices drop since. BNB is down 40% compared to last week and is the third-largest cryptocurrency by market capitalization, which is nearly $75 billion. BNB continues to witness good resilience with respect to volumes, thanks to the spike in interest within the crypto community for this asset. Binance does see volumes break new ground, from time to time, as traders attempt to capitalise on the new highs seen in Bitcoin, Ether, and other cryptocurrencies. This in turn leads to more activity on the exchange, indirectly contributing to BNB’s appreciation, and in the long run, this could be a key driver of BNB’s ROI portfolio.
As we can see from the daily chart above, BNB started on a positive note earlier this week and made the weekly high of $613.8, but the asset resisted near the all-time high and started making lower top lower bottom formation patterns correcting almost 26.5%. On a technical front, BAT is trading in a broad range of $600 levels and $450 levels. Breakouts on either side will decide the further trend for the asset.
USDT-INR Technical Analysis and Chart:
At the time of writing, USDT-INR is trading around $81 reflecting a gain of about 1% approximately over the period of 24-hours.
The pair is operating with ~10% premium, compared to its traditional counterpart. This is slightly higher than what the Indian market traditionally witnesses, and is higher compared to the previous week as well. The Indian Rupee has weakened, since the Reserve Bank of India left its benchmark repurchase rate unchanged at 4.00% in early April, leading to higher premiums as weeks pass this month. Moreover, BTC, ETH, and the major altcoins witnessed rallies, last week, before witnessing corrections. This suggests that, in order to participate in the upward rally, first traders liquidated their assets in this pair, then upon correction, squared off positions, creating a one-way swing in the market at different times, which has significantly contributed to the pair’s volatility. USDT-INR is trading in an uptrend this week, taking support at the uptrend line. We can see USDT is taking support at $78.3 levels, and resistance at a level of $86.
The overall sentiment in the crypto space remains positive, but at the same time, investors remain cautious. Thoughts with respect to the ban, seem to have become a story of yesterday. Last week we said that at $78 levels USDT/INR seems likely to hold the fort, and we stand our ground, but our expectations have been beaten. USDT/INR has successfully crossed $80 levels, by a significant margin this week, and has sustained there too. At these levels, however, we expect USDT/INR to witness a correction, but given the rupee depreciation of the past couple of weeks and volatility in the market, we remain cautious on what might be next for the pair.
Weekly Trade Summary Sheet:
Weekly Price Analysis:
| USD ($) | 15 Apr 21 | 22 Apr 21 | Previous Week | Current Week | |||
| Close | Close | % Change | High | Low | High | Low | |
| BTC | $63,314 | $51,762 | -18.25% | $64,889 | $59,369 | $63,821 | $48,500 |
| ETH | $2,519 | $2,403 | -4.61% | $2,544 | $2,109 | $2,641 | $2,011 |
| BAT | $1.52 | $1.12 | -26.32% | $1.648 | $1.390 | $1.60 | $1.09 |
| BNB | $542.63 | $506.01 | -6.75% | $638.56 | $505.56 | $612.69 | $429.05 |
Weekly Volume Analysis:
| Cryptocurrency | 1w – % Vol. Change (Global) |
| BitCoin (BTC) | 14.74% |
| Ethereum (ETH) | 19.05% |
| Basic Attention Token (BAT) | 6.16% |
| Binance Coin (BNB) | 2.00% |
Weekly Price Pointers:
| Resistance 2 | $64,899 | $2,970 | $1.650 | $738.40 |
| Resistance 1 | $57,738 | $2,642 | $1.310 | $613.00 |
| USD | BTC | ETH | BAT | BNB |
| Support 1 | $48,500 | $1,930 | $0.924 | $431.24 |
| Support 2 | $43,006 | $1,574 | $0.754 | $383.00 |
Market Updates:
- Square and Ark Invest argue that Bitcoin miners can bolster the efficiency of the renewable energy industry by acting as an electricity buyer of last resort.
- US cryptocurrency exchange Coinbase listed on the Nasdaq stock exchange last week, sparking another rally in cryptocurrency prices worldwide.
- CoinSwitch Kuber, a startup that allows young users in India to invest in cryptocurrencies, said on Thursday it has raised $25 million in a new financing round as it looks to expand its reach in India.
- U.S. House Passes Bill To Create First Crypto Task Force On Digital Asse
*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 potential 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.
