06 August 2021 | ZebPay Trade-Desk
Despite the slight BTC dip, optimism amongst the crypto community is still strong. BTC found key support at $36,000 after the asset started its dip from $42,000 levels. The sentiment seems positive as even at higher levels we have witnessed buyers buying in, and not exiting their positions. With the market rally, Bitcoin dominance has been seeing an uptrend too.
On July 31, the dominance hit a 3 month high of 49.3%, which is still relatively low compared to its dominance of close to 74% at the start of January 2021. A similar story pans out with ETH, though post the London fork if the much anticipated ETH rally does set in, we can see ETH dominance move upward too. Overall sentiment seems to be positive, and after months, some respite can be seen.
Bitcoin (BTC) Technical Analysis and Chart:
At the time of writing, Bitcoin is trading around $40,075 reflecting a gain of about 1.75% approximately over the period of 24-hours.
We have seen good on-chain metrics, which indicates that activity has increased, which is a bullish sign. On the derivatives side, data suggests that Bitcoin whales have further added to their leveraged positions, as the BTC price topped out at $42,600. Top traders across major exchanges capitalized on the opportunity and added leverage-long positions, which is very much a bullish indicator. Moreover, margin traders have increased their stablecoin borrowings, implying that whales are expecting another rally or an upside across major assets.
Bitcoin witnessed a massive rally from $29,301 to $42,605 surging almost by 45%. The asset has reversed from the crucial resistance level of $42,500 (The level mentioned in our previous reports). The prices corrected almost by 8% by forming the ‘Lower Top Lower Bottom’ Formation. BTC has strong support around $36,500 and strong resistance at $42,500. If the Breakout or close occurs above the resistance with good volumes, the asset may rally up to the $50k mark.
Ethereum (ETH) Technical Analysis and Chart:
At the time of writing, Ether is trading around $ 2,755 reflecting a gain of about 1.75% approximately over the period of 24-hours.
Ethereum seems to have embarked upon its path to recovery, crossing the $2,800 mark yesterday. ETH has rallied close to 65% from its $1,750 low. Part of the recent recovery can be attributed to the much-awaited London hard fork. Traders and investors see the EIP-1559 launch as a bullish driver for Ether’s price as it is likely to reduce gas fees. However, whether the rally will sustain or not, remains uncertain. Hence, currently, there is a lack of convincing evidence that the rally will sustain, and that is understandable, due to the unknown nature of the risks presented by the London hard fork and the uncertainty caused by unsatisfied miners.
ETH has witnessed a massive rally from $1,721 up to $2,845 surging almost by 65%. The asset now has a crucial resistance of $2,950. This level has not been breached since the asset fell from its all-time high of $4,373, in mid-May during which the mass sell-off took place. If the Breakout or close occurs above the resistance with good volumes then we may expect ETH to further rally up to $3,500.
Binance Coin (BNB) Technical Analysis and Chart:
At the time of writing, BNB is trading around $333.5 reflecting a loss of about 0.2% approximately over the period of 24-hours.
BNB is the native token of Binance which is the world’s largest and fastest-growing exchange. The bulls pushed Binance Coin (BNB) above the 50-day MA, at $310 on July 29 but they could not challenge the stiff resistance it faced at $340. This suggests that buying tends to fade up at higher levels. Binance, being the largest crypto exchange, is likely to benefit from higher volumes, given the uptrend in the market, which would indirectly impact its underlying native coin, BNB, and this might be the reason why we are seeing the asset hold strong at these levels.
BNB post making the low of $254 surged almost by 36% and made a high of $347. The asset has made a ‘Shooting Star’ pattern at the crucial resistance of $345, where the longer upper shadow indicates selling or profit booking and has corrected by 9%. (It being a green body candle the correction might not be as strong compared to a red body shooting star candle). Currently, BNB is consolidating and if the Breakout or close occurs above the resistance with good volumes then we may expect BNB to further rally upto $380.
USDT-INR Technical Analysis and Chart:
At the time of writing, USDT-INR is trading around $75.85 reflecting a gain of about 0.25% 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. Crypto markets have been in the green, and this is probably the reason why we have seen USDT/INR pair fall a little and reduce premiums. Typically, when prices start to rise, people liquidate USDT, in exchange for INR to buy into the rally. This upward selling pressure washes off premiums. If however, some profit booking is seen we can anticipate that the premiums shall return, the extent of that though remains unknown. Hence WoW, the pair has been fairly stiff. USDT-INR was trading in a range from 75.5 to 77.5 this week. We can see USDT facing resistance at 78 whereas 75 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 $76.50 levels. We expect USDT/INR to be range-bound, most likely between $75 and $78. However, given the volatility of crypto markets, over the past few weeks, we remain cautious on what might be next for the pair.
Weekly Trade Summary Sheet:
Weekly Price Analysis:
| USD ($) | 30 Jul 21 | 05 Aug 21 | Previous Week | Current Week | |||
| Close | Close | % Change | High | Low | High | Low | |
| BTC | $42,236 | $40,870 | -3.23% | $40,593 | $32,057 | $42,542 | $37,458 |
| ETH | $2,467 | $2,827 | 14.61% | $2,429 | $2,000 | $2,764 | $2,322 |
| BNB | $323 | 337.87 | -100.00% | $328 | $282 | $347 | $307 |
Weekly Volume Analysis:
| Cryptocurrency | 1w – % Vol. Change (Global) |
| BitCoin (BTC) | -9.34% |
| Ethereum (ETH) | 8.19% |
| Binance Coin (BNB) | -15.61% |
Weekly Price Pointers:
| Resistance 2 | $46,500 | $3,500 | $380 |
| Resistance 1 | $42,500 | $2,950 | $345 |
| USD | BTC | ETH | BNB |
| Support 1 | $36,500 | $2,650 | $300 |
| Support 2 | $30,000 | $2,400 | $255 |
Market Updates:
- The London hard fork has gone live on the Ethereum blockchain, bringing a major change to the way transaction fees are calculated, and to what is done with them.
- Approximately 2.3 ETH is being burnt every minute through the new transaction fee mechanism introduced in Ethereum’s London upgrade on August 5.
- Hopes of an eventual BTC ETF approval and the rebound of a key support level pushed Bitcoin price well above the $40,000 level.
- JPMorgan now offers access to six different crypto funds from GrayScale, Osprey Funds and NYDIG.
- France’s securities regulator approves: The Bitcoin-tracking fund fully complies with the European Union’s UCITS standards.
- $357 million in ETH options expire on August 6 and bears don’t stand a chance given that every neutral-to-bearish put is underwater
*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.
