30 July 2021 | ZebPay Trade-Desk
Bitcoin, after months of facing stiff resistance in the range of $32,500-$36,000 at different points in time, broke free, and witnessed a significant rally, as it skyrocketed and breached the $40,000 mark this week. BTC buyers were quite active over the last weekend, as BTC broke the 50day moving average of $34,000 and shot upwards. The asset is trending towards the $42,000 mark, its next stiff resistance, and some profit booking is likely, and hence this might act as a strong resistance level for the asset now.
Bitcoin remains in a consolidation phase as of now though and will be so until the price does not beat the $42,000 mark, the topmost point over the last 8-9 weeks. BTC, as always, has had a spillover effect on some altcoins too, as Aave, Bitcoin Cash and Chainlink have also witnessed significant double-digit day on day percentage growth, clocking 18%, 13%, and 15% growth respectively over the past 2 days.
Ethereum too has seen an appreciation of about 10% this week, and as it hit the $2,450 mark, but has fallen a little since. This rally could fuel inflows into these assets, namely BTC and ETH, as many investors have been on the sidelines over the past couple of weeks. While the overall outlook is still bearish, this upside seen during the week may very well act as the much-needed respite the market needed, and hence the next few days remain very crucial at this point. Over the course of the month, crypto markets started with a downside as Bitcoin and Altcoins were riding the downward trend. But as the month progressed, markets showed some respite, and recovery seems to have begun, and markets have been largely in the green over the past 8 consecutive trading sessions.
The market capitalization of the largest asset in the crypto space followed the same trail of volume and moved accordingly. It has swelled by about 15% in the last two weeks. Reigning as the undisputed holder of market rank 1. The reason for Bitcoin’s behavior can be mounted to a few things. The first is the rumor of amazon accepting bitcoin as payment this year which has been cleared that it’s not happening soon.
Another reason is Twitter’s CEO’s comment about Bitcoin is the key to Twitter’s future, which also boosted the rally. The fall of the can be objected to lack of institutional demand and a lot of other bearish factors. Yet the future for bitcoin lovers looks promising. Bitcoin has started its natural behaviour of rallying up finally after the market reset.
The market capitalization of Ethereum has been pretty good too, and it has followed the paths of its price. It has been rallying upwards since 21st July and continues to do so. The market cap has escalated by about 15% the same as the price. The behaviour of ETH since the last 2 weeks can be attributed to a few things.
The negative trend can be due to the exit of Anthony Di Lorio from the crypto space. And the upside can be objected to the Brazilian securities regulator approves Ether ETF, the money raised for the feature film on the world of Ethereum and its founder. Ether also found relief after the Federal reserve chairman sidelined inflation problems. Again the coming days look great for Eth and it will continue to rank 2nd in terms of market cap.
Altcoins, since the last 2 weeks have followed BTC and ETH and behaved somewhat in line with that. The DeFi token has started trading at double digits after price rallies in BTC. The news of the French government pushing an agency to regulate crypto across the EU shows a great situation for the coins.
Glamnetic, a beauty product company, has now started accepting crypto payments. A strong rally in the altcoins suggests that the bulls market has recommenced. With the spikes observed in Google and Twitter trends regarding the NFTs and DeFi coins, the forthcoming days would be wonderful for them too.
July Fundamental Snapshot at ZebPay:
The ZebPay trade desk also conducted research on broader, fundamental investment topics and our weekly technical reports this month. We conducted a market watch of leading assets earlier this week, and also covered all the new coins we launched in July,
Crypto Market Watch
After the high’s the markers saw at the start of May when most assets skyrocketed, the market took a turn. Since then most assets fell drastically and were trading in a range for almost 8-9 weeks, as they all faced stiff resistance and low volumes.
These two weeks have a swinging but good ride for the coins. A lot of them have gone down trading at 3 weeks low during last week’s mid and end. But since the last few days, the market sentiment has been extremely positive. The volumes have increased across most assets. With China imposing strict rules and Jack Palmer accusing crypto space of a capitalist industry there are a lot of blows at crypto. But positive outcomes such as more industries and sectors accepting crypto and Governments across the world making it more regulated are hopeful for a strong and bright future for Crypto.
To read our in-depth report on how markets have shaped up this month, please click here.
Launches at ZebPay in July
This month has been a special one at ZebPay. We have launched a range of new assets on our trading platform, and we are rapidly expanding our offerings. Namely, July saw the launch of the Enjin Coin, Curve DAO, Synthetix, Storj, Orchid, and the Injective Protocol.
While we have covered ENJ, and CRV in our previous trade reports, this report will look at the other 4 assets, but from an investment perspective.
Synthetix began life as the Havven protocol. Havven’s goal was to create crypto tokens that mimicked the prices of different fiat currencies on different blockchains. At the end of 2018, Havven rebranded to Synthetix and expanded its vision to include the creation of synthetic assets for cryptocurrencies and commodities.
STORJ is a utility token on the Ethereum network which follows the ERC20 standard. Its primary function is to provide compensation to individuals renting their free hard drive space.
The Orchid protocol introduces a decentralized VPN service that leaves no data trail on our internet browsing. This network has sellers of bandwidth called nodes and the users of the VPNs can buy bandwidth from these sellers using the native crypto token of the protocol called OXT.
Finally, the Injective protocol is a derivative exchange with special features that make it a “truly” decentralized DEX. It is a layer-2 DEX, meaning it is built on top of an existing blockchain. Here, the protocol is built using a Cosmos SDK built with Ethermint (EVM on Tendermint).
To know more about these coins, please visit our blog, click here.
To know more about the ENJ and CRV coins, please visit our blog, click here.
Weekly Technical Analysis:
The next few days are likely to be quite interesting for the largest asset by market capitalization, Bitcoin (BTC), as it crossed the $40,000 mark convincingly yesterday, and has held fort in the range of $39,500 or so since. Ethereum (ETH), too, is looking promising at current levels and faces strong resistance at $2,450 next. But, if it beats that, it might just witness another rally.
This week’s price action has in fact flipped the market sentiment to some degree. For the first time since the mid-May crash, we are witnessing volumes return gradually as investors are cautiously contributing to inflows positively. However, on-chain metrics haven’t been supporting the BTC rally. This means that the network is under-utilized, and the on-chain activity would have to catch up with price performance in order to sustain the market. It’s not just BTC and ETH that have been showing signs of respite.
XRP skyrocketed by almost 20% yesterday and now the $1 mark does not look too far. The bullish boost came after the partnership between Japan’s money transfer provider, SBI Remit, and the Philippines’s mobile payments service Coins.ph was finalised. Finally, as markets have regained momentum, we are likely to see institutional demand return and sentiments gradually move away from a bearish stance, after weeks of being in the red.
Bitcoin (BTC) Technical Analysis and Chart:
At the time of writing, Bitcoin is trading around $39,900 reflecting a loss of about 0.05% approximately over the period of 24-hours.
Bitcoin has witnessed an uptrend over the past few days, as it skyrocketed from $30,000 to $40,500 levels. The asset finally beat the stiff resistance of $36,000, and since then has rallied upwards. We have also seen volumes build up gradually, as institutional investors seem to be building their positions at these levels.
This week’s price action has in fact flipped the market sentiment to some degree. For the first time since the mid-May crash, we are witnessing volumes return, gradually, as investors are cautiously contributing to inflows positively. However, on-chain metrics haven’t been supporting the BTC rally. This means that the network is under-utilised, and the on-chain activity would have to catch up with price performance in order to sustain the market.
Bitcoin post-making ‘Bullish Engulfing’ pattern at the support level of $29,000 has closed in the green for the last eight consecutive trading sessions and has surged almost by 39.5% from its recent low. Currently, the asset is trading near the resistance level ($40,000 to $42,500) and has made a ‘DOJI’ candle indicating indecision. BTC is struggling to give a close above the $40k mark. To witness further rally BTC needs to trade and close above $42,500.
Ethereum (ETH) Technical Analysis and Chart:
At the time of writing, Ethereum is trading around $2,424 reflecting a gain of about 5.88% approximately over the period of 24-hours.
At current levels, bears have been preventing ETH prices from rising exponentially, like BTC, despite ETH rallying a little early this week. However, the asset continues to look attractive at current prices, and with the ‘London’ fork just around the corner, we anticipate more activity to set in and drive prices. Volumes have seen a slight push, but not as much as we anticipated after the early week rally, but this has been native to all assets, not just ETH, so this doesn’t concern us too much.
ETH took support at $1,711 (Previous Low) and started moving upwards by forming a ‘Higher High Higher Low’ pattern. The prices surged almost by 43% and made a weekly high of $2,450. The asset has faced stiff resistance around $2,400 multiple times in the past and is currently trading around these levels. Hence, we conclude that ETH to further rally needs to sustain and give a close above $2,400.
Basic Attention Token (BAT) Technical Analysis and Chart:
At the time of writing, BAT is trading around $0.6138 reflecting a gain of about 6.36% approximately over the period of 24-hours.
Basic Attention Token (BAT) has been fairly range-bound this week trading between $0.52-$0.62. Volumes have supported too. BAT’s underlying asset is the Brave browser which has seen better mass adoption among both retailers and publishers over the past few months. This coupled with the fact that BAT is still relatively undervalued given its utility, acquiring the asset at these levels seems to look like a highly attractive proposition for long-term investors.
BAT, post making the recent low of $0.4558 has surged almost by 36% making the weekly high of $0.62. The asset has faced strong resistance at these levels and has failed to give a close above $0.62 on a daily time frame. If the prices sustain and close above the resistance then we can expect another rally or else we may see some correction or profit booking.
Ripple (XRP) Technical Analysis and Chart:
At the time of writing, XRP is trading around $0.7538 reflecting a gain of about 7% approximately over the period of 24-hours.
XRP is the native currency of Ripple Labs, a software company that made the cryptocurrency and distributed ledger technology alongside a range of payment protocols to streamline cross-border settlements for financial institutions. A newly announced partnership between Japan’s largest money transfer provider, SBI Remit, and Philippines-based mobile payments service Coins.ph, that will deploy Ripple’s On-Demand Liquidity (ODL) to offer more affordable remittance options, has made XRP the talk of the town. The assets appreciated by ~20% when this agreement was signed earlier this week.
XRP last week made a low of $0.51601. It took the support near its previous low ($0.51252) and made a ‘Bullish Engulfing’ pattern (Trend Reversal pattern). Since then the bulls have taken charge and the asset has surged almost by 48% and made the weekly high of $0.76623. The asset can face resistance around $0.79350 levels and we can expect some profit booking around these levels. If the prices trade and close above $0.79350 we may see another rally up to the next resistance which is at 0.092867.
Monthly Trade Summary Sheet:
Monthly Price Analysis:
| June | July | Previous Month | Current Month | ||||
| Close | Close | % Change | High | Low | High | Low | |
| BTC | $35,041 | $40,008 | 14.18% | $40,427 | $28,893 | $40,816 | $29,361 |
| ETH | $2,274 | $2,380 | 4.66% | $2,891 | $1,707 | $2,428 | $1,722 |
| BAT | $0.614 | $0.594 | -3.15% | $0.818 | $0.434 | $0.647 | $0.458 |
| XRP | $0.706 | $0.748 | 5.89% | $1.10 | $5,127 | $0.752 | $0.518 |
Monthly Volume Analysis:
| Cryptocurrency | 1m – % Vol. Change (Global) |
| BitCoin (BTC) | -34.66% |
| Ethereum (ETH) | -25.87% |
| Basic Attention Token (BAT) | 14.84% |
| Ripple (XRP) | -42.03% |
Support and Resistance Levels:
| Resistance 2 | $50,500 | $2,850 | $0.7935 | $0.7082 |
| Resistance 1 | $42,500 | $2,650 | $0.9287 | $0.6200 |
| USD | BTC | ETH | XRP | BAT |
| Support 1 | $35,500 | $2,045 | $0.6110 | $0.4950 |
| Support 2 | $28,800 | $1,711 | $0.5125 | $0.4250 |
Market Updates:
- Santiago Nieto Castillo, leader of the UIF, the Mexican financial regulator, has issued an alert that 12 cryptocurrency exchanges are operating illegally in the country.
- Global payments platform PayPal is looking towards the United Kingdom as the next market in which to expand its crypto trading services.
- Cryptocurrency exchange Okcoin may soon be opening its doors wider to crypto traders in Malta and the Netherlands following approval from key regulators.
- Business intelligence and mobile software firm MicroStrategy has pledged to buy more Bitcoin despite reporting impairment losses of $424.8 million in Q2.
August Outlook:
The overall sentiment has been a little bearish this month but seems like it might change soon. Markets were volatile, but given that, the last week of the month has been in the green. In the month of August, we expect our favorite asset BTC to see attractive volumes and growth, as, at these levels, accumulation is likely. Volumes have started to see a recovery, which is necessary for prices to hold. Along with BTC and ETH, the majority of other altcoins also witnessed a similar trend, as BNB and BAT both fell in the start, and then appreciated in the second half of the month.
As Banks, FIs, Governments, and MNCs continue to adopt digital assets, coupled with the ever so increasing coverage this asset class has been witnessing among institutions and research papers, the macroeconomic outlook is strong. As mainstream, more credible fund managers and economists start investing and holding BTC as well as ETH, we expect others to follow suit, further instilling belief in the asset class, and pumping up volumes. With countries now starting to consider cryptos as legal tenders, the outlook is even more positive. Additionally, the ETH EIP 1559 upgrade is due anytime now, coupled with the news of the Bitcoin Taproot update too, which will surely lead to further interest in these assets. There is also positive development and news around regulation around this space around the world, which is also a positive sign.
Lastly, we expect August to be a positive month and anticipate a good recovery to set in. Though volatility seems to be a given, fundamentally BTC and ETH, the largest assets by market cap, continue to hold a strong footing in the marketplace. Given that, we remain bullish on both BTC as well as ETH and feel positively towards altcoins, especially those operating in the DeFi ecosystem, and also BNB the native token of Binance Exchange.
Conclusion:
This concludes our ZebPay July Monthly Analysis report. The report aims to provide its readers with some insight into what the month has been like for us at ZebPay, and dive into some outcomes as a future approach on what we expect to happen next. The trade-desk has put together a snapshot for our investors to understand both the fundamental and technical analysis for better trading and investment decisions, coupled with some market updates and key events that readers can refer to to get a glimpse of the key developments taking place in the crypto world and how this is shaping markets.
Happy Trading with ZebPay!
References:
*Sources of charts: https://cryptowat.ch
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.
