22 July 2021 | ZebPay Trade-Desk
Over the course of the month, crypto markets have largely seen a downside as Bitcoin and Altcoins continue to ride the downward trend. Most analysts and traders continue to maintain a bearish stance across major assets. Some basic analysis will indicate that trading activity had collapsed with spot exchange volumes having fallen more than 60% from the highs in May.
The derivatives market has also seen an exodus of leverage traders and the Bitcoin futures open interest is back to the early 2021 levels. In current times, any movement across any asset is very largely dependent on volumes, and till we don’t witness that, the market is likely to swirl around current levels.
Bitcoin (BTC) Technical Analysis and Chart:
At the time of writing, Bitcoin is trading around $31,880 reflecting a gain of about 2% approximately over the period of 24-hours.
The upcoming Grayscale unlockings, coupled with the Taproot upgrade, will tempt whales to buy in, but volumes are yet to reflect that. Bitcoin has been range-bound over the past 10 days trading between $29,500 to $32,000. The asset has also not benefited from volumes which is why it is unable to beat its resistance and witness a rally. The next few days remain crucial for Bitcoin as we expect to hear something about the Bitcoin Taproot Upgrade soon.
Bitcoin was trading sideways in a broad range from $31,000 to $36,500 for the past few weeks. This week the asset gave a breakout on the downside but with low volumes. However, BTC did not test the support of $28,800 (Previous Low) and reversed from the weekly low of $29,301.
Technically on the daily time frame, the asset has made a ‘Bullish Engulfing’ pattern which is a two-day bullish reversal pattern occurring in a downtrend. Hence to conclude, we may see some recovery in the asset unless the support levels of $28,800 or the low of the pattern ($29,301) are broken on a closing basis.
Ethereum (ETH) Technical Analysis and Chart:
At the time of writing, Ether is trading around $1,980 reflecting a gain of about 4.5% approximately over the period of 24-hours.
Ethereum (ETH), the second-largest asset by market capitalization of $230bn, has seen a dip of almost 20% since the start of the week, falling below the $2,000 mark. At current levels, bears have been preventing ETH prices from rising, and buyers seem to be unable to push prices upwards. However, the asset continues to look attractive at current prices, and with the ‘London’ fork just 2 weeks away, we anticipate more activity to set in and drive prices. Volumes continue to remain low, but this has been native to all assets, not just ETH, so this doesn’t concern us too much.
ETH was trading in a downtrend for the past two weeks. The asset was trying to take support at $1,860 but was unable to gain momentum and breached the support but with low volumes and made the weekly low of $1,721. The asset has yet again taken support around $1,711 (Previous Low) and has shown signs of recovery. The lower longer shadow and a subsequent large green candle indicates buying at lower levels. ETH has a strong resistance at $2,045 and to further rally the asset needs to trade and close above the resistance level.
Binance Coin (BNB) Technical Analysis and Chart:
At the time of writing, BNB is trading around $292 reflecting a gain of about 2% approximately over the period of 24-hours.
BNB is the native token of Binance which is the world’s largest and fastest-growing exchange. One of the leading altcoins, BNB, has been range-bound this week, trading in the range of $280-$310. BNB has a market dominance of ~4% ranking 3rd among core cryptos in terms of market cap, which is currently at $48bn. As Binance as an exchange continues to grow and remains the leading exchange globally, BNB’s appreciation soon in likely, and in the long run, this could be a key driver of BNB’s ROI portfolio.
BNB after surging almost by 51% from the previous low of $225 faced resistance at $340 and corrected by 25% making the weekly low of $254.5. Technically, on the daily time frame the asset has taken support at $251 and has recovered almost by 20%. BNB can face stiff resistance around $305. Once the resistance is broken we can expect the asset to further rally upto $340.
USDT-INR Technical Analysis and Chart:
At the time of writing, USDT-INR is trading around $77 reflecting a loss of about 0.5% approximately over the period of 24-hours.
The pair is operating with a ~4% premium, compared to its traditional counterpart. This is lower than what the Indian market traditionally witnesses. This comes due to the appreciation of INR vs USD. INR has strengthened, the FED inflation rate announcement early this week. Crypto markets have been in the red, and volumes aren’t returning as expected, which means that traders are holding on to either of the one asset in the pair, and hence unable to swing the market in any direction. Hence WoW, the pair has been fairly stiff. USDT-INR was trading in a range from 76.5 to 78 this week. We can see USDT facing resistance at 78.5. whereas 76.2 can act as important support.
The overall sentiment in the crypto space remains positive, but at the same time, investors remain cautious. Earlier we said that at $77 levels USDT/INR seems likely to sustain, and we have been more or less on point. The USDT/INR pair currently trades close to $77 levels. We expect USDT/INR to be range-bound, most likely between $76.50-$78.50. Given that the rupee has been quite volatile the past week, coupled with the volatility of crypto markets, this week, we remain cautious on what might be next for the pair.
Weekly Trade Summary Sheet:
Weekly Price Analysis:
| USD ($) | 15 Jul 21 | 21 Jul 21 | Previous Week | Current Week | |||
| Close | Close | % Change | High | Low | High | Low | |
| BTC | $31,781 | $32,111 | 1.04% | $34,592 | $31,175 | $32,752 | $29,361 |
| ETH | $1,911 | $1,991 | 4.18% | $2,190 | $1,833 | $2,026 | $1,722 |
| BNB | $315 | $293 | -7.13% | $334 | $301 | $256 | $256 |
Weekly Volume Analysis:
| Cryptocurrency | 1w – % Vol. Change (Global) |
| BitCoin (BTC) | 2.08% |
| Ethereum (ETH) | -5.95% |
| Binance Coin (BNB) | 9.23% |
Weekly Price Pointers:
| Resistance 2 | $42,500 | $2,400 | $340.00 |
| Resistance 1 | $36,500 | $2,045 | $305.00 |
| USD | BTC | ETH | BNB |
| Support 1 | $28,800 | $1,711 | $250.00 |
| Support 2 | $24,300 | $1,520 | $225.00 |
Market Updates:
- Tether’s general counsel said a full audit is coming in months.
- In a bid to get a cut of the developing growing cryptocurrency market share in India, banking platform Cashaa has declared its launch in India.
- Most of JPMorgan’s clients see bitcoin as an asset class and are demanding crypto services, according to the company’s senior executive Mary Callahan Erdoes.
- MoneyGram International Inc., one of the largest money-transfer services in the U.S., has received preliminary takeover interest from Stellar Development Foundation and private equity firm Advent International, according to people familiar with the matter.
*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 the Author is for informational purposes only and should not be treated as investment advice.
