22 October 2021 | ZebPay Trade-Desk
Between ETF approval, ETF launch and now new all-time-highs (ATH), the pace of news is frenetic, but all positive. The market feels firm based on client sentiment and derivative market positioning. This is absolutely a BTC-led rally. When the dust does settle, expect to see renewed interest in ETH and other altcoins (alts) and for dispersion to increase. Altcoins too have seen an impressive increase over the past 2 days, most up between 4-9%. This is typical of altcoins, as they tend to follow BTC’s rally, usually with a slight lag, but this time, the rally that has taken place has been pretty instant, signaling a positive sentiment in the marketplace.
Bitcoin (BTC) Technical Analysis and Chart:
At the time of writing, Bitcoin is trading around $63,300 reflecting a loss of about 2.5% approximately over the period of 24-hours.
By all metrics, $BITO’s debut was a smashing success. The BTC-linked ETF saw nearly $1bn in volume and garnered $570mn of assets on its first day of trading, making it the 2nd largest ETF debut of all time. Over the past two days, the ETF (ticker BITO) ended Wednesday with $1.1 billion under management after trading volume topped $1.2 billion, according to a recent press release. This has led to BTC achieving its new ATH of $66,999. After bursting through the $66k barrier, Bitcoin was briefly trading above $66k around 11 AM EST yesterday. The rest of the market followed suit led by Layer 1s with Ethereum, Solana, and Polkadot all up over 7% in the last day.
Bulls are making it large as Bitcoin skyrocketed to the new all-time high of $66,999. BTC is trading in a steep uptrend and has surged almost by 64% within a month. The asset faced resistance at the $67k mark and witnessed some profit bookings at these levels as the price corrected almost by 7.5% from the peak. Currently, $65,000 to $67,000 will act as a strong resistance zone, and to further rally BTC needs to break and close above the resistance level whereas $60,000 will act as strong support for the asset.
Ethereum (ETH) Technical Analysis and Chart:
At the time of writing, Ether is trading around $4,142 reflecting a loss of about 0.45% approximately over the period of 24-hours.
Ethereum (ETH) has also seen a significant rally, currently trading around $4,200 after it broke through the stiff resistance it faced at $4,000. It came very close to setting a new all-time high but missed out on the same. ETH is up by approximately 8% over a 24hr period, and ETH dominance too has improved, currently close to 20%, as the second-largest asset currently has a market capitalization of $500 billion. The top altcoin seems to be teasing the market with hopes of a move above $4,300 and making a new ATH. However, the same has not been breached yet. Much of the appreciation that ETH has seen from the July lows can be credited to Defi projects accumulating more total value locked (TVL) and to the disinflationary mechanism introduced in EIP-1559.
ETH has been trading in an uptrend and this week the bulls pushed the price above the psychological level of $4k mark and made the weekly high of $4,370. The asset has surged almost by 58% within a month. However, the asset faced stiff resistance and was unable to breach the all-time high of $4,373 and corrected almost by 8%. To further rally ETH needs to break and close above the all-time high with good volumes. Currently, the asset is taking support around $4,000.
Binance Coin (BNB)Technical Analysis and Chart
At the time of writing, BNB is trading around $478 reflecting a loss of about 3.05% approximately over the period of 24-hours.
Binance coin (BNB) is an in-house utility token of the world’s largest exchange, Binance. This week, the asset fared well and rallied around 12%. This rally is mostly caused by the 1 billion USD fund for the development of DApps projects on the Binance Smart Chain (BSC). The asset now has regained 3rd place, with its market capitalization at $80 bn. This move manifests that large investors are still bullish on the token despite the regulations cracking down. The BNB burn protocol event is also acting as a fascinating catalyst due to which the bulls hold to their position in response to the event.
BNB post-taking support at $330 started its upward journey and surged almost by 50.5%. The asset faced stiff resistance around $450 (Neckline of the ‘Double Top or M’ pattern) however last week, it gave a breakout and rallied up to $497.6. BNB has a very strong resistance zone from the psychological level of $500 to $518.5 (Previous High). Currently, the asset is consolidating and trading in a range from $465 to $500. Once the breakout or close occurs above the resistance with good volumes, then we can expect the prices to further rally up to the $600 mark.
USDT-INR Technical Analysis and Chart:
At the time of writing, USDT-INR is trading around $77.70 reflecting a loss of about 0.32% approximately over the period of 24-hours.
The pair is operating with a ~5% premium, compared to its traditional counterpart. This is in line with what the Indian market traditionally witnesses. Crypto markets have been in the green most of this week, after consolidating last week, before giving a breakout impressively. This is probably the reason why we have seen USDT/INR pair premiums higher at first, as markets dipped significantly. Then to participate in the uptrend, traders and investors buy-in, demand for the assets rise, in exchange for USDT, which in turn tends to wash out premiums USDT-INR is consolidating and trading in a range from 77 to 78 this week. Technically, on a daily time frame, the pair is forming a ‘Descending Triangle’ formation and a breakout on either side will further decide the trend for USDT.
The overall sentiment in the crypto space remains positive, but at the same time, investors remain cautious. We expect USDT/INR to be range-bound, most likely between $76 and $78. However, given the volatility of crypto markets, over the past few weeks, we remain cautious on what might be next for the pair.
Weekly Trade Summary Sheet:
Weekly Price Analysis:
| USD ($) | 15 Oct 21 | 21 Oct 21 | Previous Week | Current Week | |||
| Close | Close | % Change | High | Low | High | Low | |
| BTC | $57,322 | $62,210 | 8.53% | $59,693 | $53,688 | $66,930 | $56,868 |
| ETH | $3,786 | $4,054 | 7.09% | $3,837 | $3,386 | $3,661 | $4,366 |
| BNB | $472.02 | $471.26 | -0.16% | $482.64 | $392.57 | $505.27 | $453.90 |
Weekly Volume Analysis:
| Cryptocurrency | 1w – % Vol. Change (Global) |
| BitCoin (BTC) | 0.80% |
| Ethereum (ETH) | 7.81% |
| Binance Coin (BNB) | -17.98% |
Weekly Price Pointers:
| Resistance 2 | $74,500 | $5,096 | $600 |
| Resistance 1 | $67,000 | $4,373 | $520 |
| USD | BTC | ETH | BNB |
| Support 1 | $59,500 | $3,950 | $450 |
| Support 2 | $53,000 | $3,650 | $390 |
Market Updates:
- Pimco, an asset manager with $2.2 trillion under management, is looking to start trading cryptocurrencies.
- Walmart, the world’s largest company by revenue, is letting customers buy bitcoin at dozens of its U.S. stores.
- A Senate committee in Australia has made a number of proposals to address the lack of proper regulations for the cryptocurrency space.
- Robinhood CEO Vlad Tenev said crypto as an asset class is here to “stay” and revealed that over a million users have signed up to the firm’s crypto wallet waitlist.
- Valkyrie’s Bitcoin futures ETF will go live on Nasdaq just a few days after ProShares debuted a similar product on NYSE.
*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.
