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Weekly Trade Report: Silence after the storm

04 December 2020 | ZebPay Trade Desk

Let’s look at what we have in store for a trade set-up.

Bitcoin (BTC) Technical Analysis and Chart:

At the time of writing, Bitcoin is trading around $19,295 reflecting a profit of 1% approximately over the period of 24-hours.

As we see in the chart above, after a mild correction of last week BTC is again rallying, currently trading above $19,000, with next resistance at $19,450 levels. Price has stabilized a bit after volatile last week. Consistent with our last week’s report correction proved to be a good entry point.

On the technical front, the picture is a bit mixed, MACD levels and histogram are both very much in the green, ADX is confirming the trend. RSI is an indicator that we have emphasised recently is again flashing overbought on the weekly chart. That’s something to watch out for.  

Mainstream adoption and institutional flows remain strong with Guggenheim Capital allotting 10% of their macro fund’s portfolio to BTC. With that said we remain bullish looking for dips to enter. Dips remain an attractive entry point for accumulation.

Ethereum (ETH) Technical Analysis and Chart:

At the time of writing, Ethereum is trading around $606.9 reflecting a profit of 1.01% approximately over the period of 24-hours.

As we see in the chart the price has continued its upward trend after the more than 20% correction towards the end of the previous month, price has tested $625 levels a few times over the past few weeks but failed to breach that. Price continues to trade above the bullish channel that was formed in the recent months.

The technical front picture is very positive with MACD and histogram in the positive territory with RSI still below the overbought levels. Successful launch of ETH 2.0 phase 0 is positive for the price as well.

We remain bullish on ETH, if the price is able to break $640 levels next levels we look at are $800. The analysis will be negated if price breaches the $540 support.

Basic Attention Token (BAT) Technical Analysis and Chart:

At the time of writing, BAT is trading around $0.2440 reflecting a profit of about 1.72% approximately over the period of 24-hours.

As in the chart after successfully exiting the bearish channel has formed an uptrend and remains supported by the uptrend consistent with our report last week. 

On the technical front picture is quite positive with MACD line crossing above the signal line, ADX confirming the trend and despite a healthy rally, RSI staying close to neutral levels signalling further legs in the rally.

With that said we remain bullish on the BAT looking at $0.30 levels, analysis will be negated if price breaks below the bullish channel.

Compound (COMP) Technical Analysis and Chart: 

At the time of writing, COMP  is  trading around $134 reflecting a profit of about 7.12% approximately over the period of 24-hours.

Comp has enjoyed a strong rally in the recent past, with price successfully breaching $120 levels, after the bearish trend since the start of the september.

MACD is positive and MACD line is comfortably above the signal line, RSI close to overbought levels. More importantly it seems like a formation of double bottom pattern in the chart, which means price can see a continued uptrend if convincingly breaches the current level.

We are tilted towards bullish on COMP cautiously in the near term with possibility of further breakout. ANalysis will be negated if price falls below $120 levels.

USDT-INR Technical Analysis and Chart: 

At the time of writing, USDT-INR  is  trading around 77.47 reflecting a gain of about 0.17% approximately over the period of 24-hours.

USDT-INR makes up for an interesting pair as USDT is a stable coin, hence the pair has the property of both forex and crypto. 

On the technical front, MACD is still positive but has come down, RSI is nearing the overbought levels and ADX is not confirming the trend. But as we point out in our previous reports it’s important to see what’s happening with premium, the pair had with regards to USD-INR.

Last week, the premium after expanding, is stable around 5% levels. We believe USDT being a stable coin is an easy way to gain exposure to USD. On the USD front there is a tug of war between positive vaccine news and flaring up cases in the USA, positive news have dominated so far with the UK granting the emergency authorization to covid vaccine. With Crypto rallying as well, the premium we see in the pair is quite expensive.

With USD-INR pair being largely stable on the INR positive side and  expensive premium we are  bearish on the USDT-INR pair with premium looking to correct at 3% levels in the near term.

Weekly Trade Summary Sheet: 

Weekly Price Analysis:

USD ($)26 Nov 2003 Dec 20Previous WeekCurrent Week
CloseClose% ChangeHighLowHighLow
BTC$17,150.620$19,445.40013.38%$19,390.970$16,351.030$19,845.980$16,526.420
ETH$518.800$616.71018.87%$621.170$471.630$635.160$497.240
BAT$0.223$0.2417.87%$0.287$0.197$0.258$0.214
XRP$0.533$0.63118.47%$0.768$0.298$0.679$0.509
COMP$107.070$131.98023.27%$139.560$99.100$137.220$100.610

Weekly Volume Analysis:

Cryptocurrency1w – % Vol. Change (Global)
BitCoin (BTC)0.88%
Ethereum (ETH)3.39%
Basic Attention Token (BAT)0.74%
Ripple (XRP)16.87%
Compound (Comp)-6.45%

Weekly Price Pointers:

Resistance 2$24,000$684$0.3350$0.8250$164.20
Resistance 1$19,800$635$0.2850$0.7430$151.80
USDBTCETHBATXRPCOMP
Support 1$19,000$540$0.2330$0.5260$115.60
Support 2$18,400$484$0.1950$0.3880$94.40

Market Updates:

  1. Amid November’s 42% Bitcoin rally, roughly 185,600 BTC that hadn’t moved in at least 12 months was transferred on-chain.
  2. Ripple could be forced to burn its entire XRP holdings if the community votes for it, the company’s CTO David Schwartz has confirmed.
  3. Central Bank of Nigeria Governor Decries the Use of Parallel Exchange Rate as Citizens Switch to Crypto.
  4. Bullrun Pushing More Investors To Jump on Securypto.
  5. Visa will provide a credit card that allows companies to make and get payments with the digital currency via the card once Circle graduates from Visa’s Fast Track initiative.

*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.

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