10 Dec 2021 | ZebPay Trade-Desk
Bitcoin (BTC) has seen a significant correction, over the past week falling by approximately 25%, fling to lows of $42,333. This in turn flipped the sentiment in the marketplace, which means that bears are now in charge. The panic selling came after Evergrande defaulted on yet another loan, and after BTC fell below its support at $53,000 over the last weekend. After witnessing a crash over the weekend and hitting lows of $3,436, the asset seems to have recovered pretty well over the past day or so, and currently trades at $4,320.
ETH dominance is up, close to 22% as the asset has been overperforming, compared to BTC this year. The number of active addresses on the network continues to climb while the issuance of new ETH is diminishing, a classic demand and supply paradigm, which is the key reason for its rise.
Markets have recovered well after the weekend crash. In the lead-up to the crash, we saw a large amount of profit booking taking place, which has now calmed down. The market seems to have stabilized, as BTC successfully crossed the $50k mark on Tuesday which also acts as a crucial level, as $50k is also the 150d moving average. We feel strongly towards this asset, as so far it has underperformed compared to its peers, and a rally would be subject to BTC trending in an upward direction here on. Among the altcoins,
Ethereum seems to be outperforming Bitcoin by a good margin this year. Its market dominance is up to 22%. The number of active addresses on the network continues to climb while the issuance of new ETH is diminishing, a classic demand and supply paradigm, which is the key reason for its rise. ETH will undergo a hard fork today, which is likely to also place upward pressure on price. ETH’s recovery has been more robust; after .08 had been resistance on the ETH/BTC all year, it’s now trading above .088 and touched a multi-year high earlier this week of .089.
MATIC is up about 20% after the announcement that Sequoia, Steadview, and other investors were purchasing tokens in a private round. Polygon has seen a code script upgrade. With the new code in place, withdrawal and deposits will be quicker and integrated on various DeFi platforms. Moreover, tps is expected to increase too. Fundamentally, over the long run, the asset looks strong, and a valuable investment proposition.
BAT’s appreciation last month came following a partnership between Brave Browser and Solana. The two companies will collaborate to bring wallet features for the Solana blockchain into Brave’s Web2 desktop and mobile browsers. BAT has been witnessing good inflows, which is reflected in the volumes we have seen, up 55% week on week. The asset has recovered by more than 27% since the crash, and now faces a crucial resistance at $1.4. Once again, we remain bullish on this asset, due to its strong fundamental outlook in the LR.
Overall, the week has been an interesting one. Most assets have seen some recovery, but the market at large seems to be in a consolidation phase. The next few days shall be crucial for us to be able to assess which side the market will trend, as currently much of it is moving sideways.
Technical Outlook:
BITCOIN:
Bitcoin, after making the peak of $69,000 was trading in a downtrend forming a ‘Descending Triangle’ pattern (Bearish Pattern) where the downward sloping line acts as resistance and the horizontal trendline acts as support (which was at $53,000). The asset was struggling to breach the multiple resistance like 20 Day Moving Average, downward sloping trendline, psychological level of $60,000.
Last weekend it broke the ‘Descending Triangle Pattern’ on the downside and witnessed a sharp fall. The asset made a weekly low of $42,000 and is currently consolidating in a range between $51,000 to $47,500. BTC has a strong support zone from $43,500 to $46,500 and to rally it needs to close and sustain above the resistance of $53,000.
ETH:
ETH, last weekend witnessed a sharp fall and the prices plunged almost by 30% from its peak making the low of $3,436. Post this move, the asset has recovered well and the prices are trading above the psychological level of $4,000. Technically, ETH is trading in a broad range from $4,400 to $4,050 and breakouts on either side will further decide the trend for the asset. Declining volumes and RSI around 50 suggest a neutral stance for the asset.
BAT:
BAT after making the ‘Spinning Top’ candle at the all-time high of $1.92 started making the ‘Descending channel’ formation. Last week it broke the channel in the downside and witnessed a sharp fall making a low of $0.875. Post this move, the asset recovered well and surged almost by 60%. However, the bulls were not able to breach the stiff resistance of $1.5 and the prices dropped to $1.135. Technically, BAT is trading around the crucial support level of $1.16 (78.6% Fibonacci Retracement Level) and if the asset holds and sustains above the support then we can expect the bulls to resume the up move.
Weekly Snapshot:
| USD ($) | 02 Dec 21 | 09 Dec 21 | Previous Week | Current Week | |||
| Close | Close | % Change | High | Low | High | Low | |
| BTC | $56,478 | $47,672 | -15.59% | $59,183 | $53,569 | $57,482 | $42,875 |
| ETH | $4,511 | $4,120 | -8.68% | $4,780 | $3,934 | $4,647 | $3,525 |
| BAT | $1.43 | $1.14 | -20.28% | $1.92 | $1.32 | $0.90 | $1.41 |
| Cryptocurrency | 1w – % Vol. Change (Global) |
| BitCoin (BTC) | 12.16% |
| Ethereum (ETH) | 16.64% |
| Basic Attention Token (BAT) | -59.21% |
| Resistance 2 | $60,000 | $4,865 | $1.92 | $2.55 |
| Resistance 1 | $53,000 | $4,450 | $1.50 | $2.20 |
| USD | BTC | ETH | BAT | MATIC |
| Support 1 | $43,000 | $3,950 | $1.16 | $1.90 |
| Support 2 | $38,500 | $3,350 | $0.95 | $1.55 |
Market Updates:
- Visa has announced that it would be starting a new crypto consulting service for banks and merchants to promote adoption of cryptocurrencies in the mainstream.
- The United States House Committee on Financial Services has released a memorandum mentioning these four key points: crypto exchange, regulatory concerns in digital assets, stable coin offerings and federal regulatory responses.
- Google has released its traditional annual list of top searches for the year 2021 Dogecoin ranked 4th in the most popular news search term both globally and separately in the US and “Ethereum price” was ranked 10th.
- The Solana blockchain has reportedly suffered another DDoS attack that temporarily clogged the network, however the network appeared to remain online.
- New York-based asset manager WisdomTree has amended its filing for a Bitcoin exchange-traded fund with the Securities and Exchange Commission to name U.S. Bank as its custodian.
*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.
