26 March 2021 | ZebPay Trade-Desk
Bitcoin has been fairly volatile this week, trading in the range of $52,000 – $58,500. The asset has witnessed a minor correction this week after it hit a new ATH last week of $61,683. Ether on the other hand, has been relatively stable, trading in the range of $1,600 – $1,750 this week, and it seems like these levels are likely to hold over the next week or so. Altcoins continue to impress, as volumes continue to uphold. BAT has been leading the pack, although over the last couple days it too has witnessed a small correction. Let us see what this week’s trade setup has in store for us.
Bitcoin (BTC) Technical Analysis and Chart:
At the time of writing, Bitcoin is trading around $53,500 reflecting a gain of about 4% approximately over the period of 24-hours.
BTC hit a new ATH, last week, after which a correction has taken place. Volumes have held up, but some profit-booking at current levels is seen. BTC has been range bound towards the later part of the week, but fundamentally it remains a very strong asset. This is due to the fact that blockchain technology, led by the advent of BTC, is making in-roads among FI’s, government policies as well as large MNC’s. The strong surge in BTC over this month, can be attributed to this very trend, and is likely to continue in the near future.
As we mentioned in our last week’s report that Bitcoin is facing some stiff resistance and investors should remain cautious at higher levels. This week too, the asset was not able to break the resistance levels and the bears took advantage dragging the price to a weekly low of $50,305. On a technical front, we can see that although Bitcoin is making a lower top lower bottom formation yet it has bounced from its crucial support level of $50,150 ( 61.8% Fibonacci retracement level). Post making a spinning top ( Red body) at this support level on March 25th, its now trying to make a bullish engulfing pattern on a daily chart.
Hence, we conclude that $50,150 and $47,033 will act as key support levels and if broken we may see further downfall.
Ethereum (ETH) Technical Analysis and Chart:
At the time of writing, Ethereum is trading around $1,625 reflecting a gain of about 2.4% approximately over the period of 24-hours.
ETH has been relatively stable when compared to its counterpart, BTC. It has been range bound, and fluctuating between $1,600 – $1,750 since the start of this week. Overall, compared to last week, ETH has seen a fall of approximately 7%. Ethereum will witness some changes in its network, known as EIP-1559, which will entail tokens being burned/destroyed once the amended protocol takes effect. The result is the fundamental economic problem of demand and supply, and as this is likely to create a supply crunch in the future, we anticipate that ETH will witness a significant upward price pressure, making it a desirable asset at this price.
As we mentioned in our last week report, ETH was consolidating and a breakout on either side was supposed to decide further movement. However this week, it gave a breakdown and the asset plunged to a weekly low of $1,546. The asset has yet again taken support at $1,543.69 (61.8% Fibonacci Retracement Level) and made a doji pattern at this level which indicates uncertainty in the downtrend as of now.
Hence, we conclude that until the support level of $1,543.69 is maintained we may see a little bounce in the asset. $1,543 and $1,434 will be the support levels to watch out for. If broken we may see further downfall.
Basic Attention Token (BAT) Technical Analysis and Chart:
At the time of writing, BAT is trading around $1.014 reflecting a gain of about 4.2% approximately over the period of 24-hours.
BAT has been on a bull run, ever since it marked the $1bn market capitalization milestone. Last week the asset hit a new ATH, but it has witnessed a minor correction since, as it fell by about 12% this week compared to last week. This is not bewildering, as volumes have also witnessed a similar trend over the same period. The BAT project, along with the Brave browser is quite impressive, as it tries to solve some of the fundamental problems that exist today in digital advertising, and hence remains an asset one should keep a close eye on.
As we can see from the daily chart, post making the lifetime high of $1.38, the asset has been making lower top lower bottom formation on a continuous basis and the asset has corrected almost 33% making a weekly low of $0.925.
However this week it has taken support at $0.92 ( 50% Fibonacci Retracement Level).
On a technical front, BAT is still in an uptrend taking support at 50EMA on the daily chart. We can see an upward movement until it trades above the support levels.
Uniswap (UNI) Technical Analysis and Chart:
At the time of writing, UNI is trading around $27.4 reflecting a gain of about 3.4% approximately over the period of 24-hours.
The Uniswap is a decentralized automated liquidity pool that is established on the Ethereum blockchain. It has been developed to act as a governance protocol. There are five big liquidity pools right now in terms of total value locked with APY rates varying from 14% to 27% yearly: The annual percentage yield (APY) is the real rate of return earned on a savings deposit or investment taking into account the effect of compounding interest. It is a dedicated governance system that has strived independently thus far to create a protocol that will shape the future of trading.
As we can see from the daily chart, since the all time high of $36.83, UNI has corrected almost 30% making a weekly low of $ 25.55. Post the consolidation, this week it has also started making lower top lower bottom formation. It has also broken the uptrend line support indicating weakness in the asset.
$24.75 will act as key support levels and if it fails to sustain, we may see further downside movement in the asset.
USDT-INR Technical Analysis and Chart:
At the time of writing, USDT-INR is trading around $76.75 reflecting a gain of about 0.33% approximately over the period of 24-hours.
The pair is operating with ~7.5% premium, compared to its traditional counterpart. This is what the Indian marketplace is typically used to seeing. After Bitcoin hit a new ATH last week and saw significant profit booking among traders. In order to participate in the rally, Bitcoin and Ether traders tend to liquidate their stable coins in exchange for these assets. On correction though, just the opposite actions took place, which in turn results in an appreciation in the USDT/INR pair. Hence, the surge in the pair has led to levels of $78+ towards the end of the week. In addition to that, this week we saw some positive sentiments on what might be next for the crypto industry in India, and a complete ban has in fact started to seem unlikely. This has further enhanced investor confidence. USDT-INR is trading in an uptrend this week, taking support at the uptrend line. We can see USDT is taking support at $74.50 levels, and resistance at a level of $77.50.
The overall sentiment in the crypto space has turned positive, but at the same time, investors remain cautious. Last week we said that at $75 levels USDT/INR seems likely to appreciate further due to the boost in consumer and business confidence, and India’s road to recovery from the COVID 19 crisis. This has been true, in fact USDT/INR beat our expectations of $76+ levels and hit $78 levels this week. At these levels, we expect USDT/INR to maintain premiums, though if BTC/ETH witnesses another rally, a slight correction is likely.
Weekly Trade Summary Sheet:
Weekly Price Analysis:
| USD ($) | 18 Mar 21 | 25 Mar 21 | Previous Week | Current Week | |||
| Close | Close | % Change | High | Low | High | Low | |
| BTC | $57,859 | $51,325 | -11.29% | $61,684 | $53,555 | $58,421 | $50,305 |
| ETH | $1,783 | $1,587 | -10.99% | $1,938 | $1,729 | $1,808 | $1,546 |
| BAT | $1.220 | $0.973 | -20.25% | $1.370 | $0.722 | $1.211 | $0.925 |
| UNI | $30.030 | $26.510 | -11.72% | $33.680 | $28.100 | $36.830 | $25.580 |
Weekly Volume Analysis:
| Cryptocurrency | 1w – % Vol. Change (Global) |
| Bitcoin (BTC) | 17.20% |
| Ethereum (ETH) | 5.56% |
| Basic Attention Token (BAT) | -41.93% |
| Uniswap (UNI) | 65.15% |
Weekly Price Pointers:
| Resistance 2 | $61,788 | $1,874 | $1.240 | $33.00 |
| Resistance 1 | $57,628 | $1,741 | $1.120 | $29.77 |
| USD | BTC | ETH | BAT | UNI |
| Support 1 | $50,187 | $1,546 | $0.920 | $24.75 |
| Support 2 | $47,033 | $1,443 | $0.810 | $22.26 |
Market Updates:
- It is Bitcoin ETF decision season once again for America’s securities regulator amid a changing of the guard at the commission.
- The growing cost of compliance in South Korea could push smaller crypto businesses out of the country.
- The CEO of popular cryptocurrency trading platform Kraken has reaffirmed he believes the price of Bitcoin will hit $1 million in the next few years.
- Metaco will use IBM Cloud to provide robust security-critical technology for institutional investors entering the digital asset space.
*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 Author is for informational purposes only and should not be treated as investment advice.
