16 October 2020 | ZebPay Trade-Desk
Cryptocurrency markets, after enjoying a positive run for most of the last week, have seen mild correction towards the end of the week retaining most of the gains nonetheless. The situation has turned positive and markets have breached key resistance which should act as support in near term. Bulls have returned to the market with all the rage. 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 $11,373 reflecting a loss of 0.75% approximately over the period of 24-hours.
As we see in the chart above, Bitcoin has successfully breached the resistance of $11,300 this month and breaking out of the range bound trading shown last month. Last week BTC broke out of the symmetric triangle that had formed from above, buying over the last two days has taken a bit of breather after $11,500 levels were tested. BTC finds a strong support around $11,000 followed by $10,600 levels. On the upper side, BTC finds small resistance at $11,500.
MACD had a bullish crossover with both signal line and histogram in positive territory, coupled with ADX (Average directional Index) moving to 25 levels confirming the uptrend and price trading over critical EMA’s, we see the bullish run continuing making dip buying attractive.
The Analysis will be negated with BTC breaks below the support of $11,000 convincingly.
Ethereum (ETH) Technical Analysis and Chart:
At the time of writing, Ethereum is trading around $374.1 reflecting a loss of 1.13% approximately over the period of 24-hours.
As we see in the chart above, Ethereum is trading well above support level of $315 and with resistance at around $395 levels. Currently, trading above both 10 and 21 days EMAs, near the resistance levels.
ETH showed signs of life last week with bulls gaining the upper hand but momentum seemed to be slowed as we move closer to $390 levels, with MACD slight positive, ADX showing non-trending level and RSI near neutral levels we see ETH constraint within the support resistance band in the near term.
This should imply Ethereum will face some selling pressure as we move closer to $390 levels from a technical standpoint, that means selling rallies when close to resistance which appears to be the case now.
Analysis will be negated if ETH trades above $400 levels convincingly.
Basic Attention Token (BAT) Technical Analysis and Chart:
At the time of writing, BAT is trading around $0.22120 reflecting a loss of about 2.5% approximately over the period of 24-hours.
BAT took a break from the continued bearish spell it faced since the start of September bouncing from $0.205 level, although unsuccessfully tried breaching the resistance of $0.25 levels, things are still looking up for BAT from technical point of view, with MACD histogram turning positive and bullish crossover between MACD line and signal line.
With having strong support at 0.2050 levels and RSI blinking oversold levels, current price level is a good entry point with a target of riding till at least the resistance level of $0.25.
The Analysis will be negated if unlike last week BAT breaks below support of $ 0.0205.
Uniswap (UNI) Technical Analysis and Chart:
At the time of writing, the recently launched asset on our platform UNI is trading around $2.99 reflecting a loss of about 3.6% approximately over the period of 24-hours.
UNI after trading range bound and sideways over the last few days has fallen prey to bears in the near term. Trading slightly below the near the term support of $3.14, after failing to breach the $3.4/$3.6 levels. In the near term technicals paint a dire picture for the outlook.
With the MACD line moving below the signal line and ADX confirming the bearish trend, we anticipate further downside in UNI. The Analysis will be negated if UNI breaches $3.2 levels.
Cosmos (ATOM) Technical Analysis and Chart:
At the time of writing, ATOM is trading around $5.60 reflecting a loss of about 4.08% approximately over the period of 24-hours.
After the bouncing off from the support level of $4.6 last week ATOM is enjoying a bullish trend in the near term. After getting resisted at $6 level, ATOM still trades within the bullish channel as seen above.
The MACD line turned positive with a bullish crossover; the positive technical picture remains intact for ATOM this week as well, with price looking to continue on gains of the last week.
Therefore, we maintain a “buy on dips” outlook like last week on ATOM, to ride along towards the next resistance.
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 $103.6 reflecting a loss of about 4.68% approximately over the period of 24-hours.
COMP has continued on a bearish trend since September, it broke the support of $120 last week, which is now acting as a resistance in the near term. Next support comes at around $100/102 levels, it’s trading close to the support level.
The cause of worry remains MACD, which is deeply negative and below the signal line with COMP stuck in the bearish channel as seen above, we see the price remaining under pressure next week as well.
The Analysis will be negated if price breaks the bearish channel or breaks the resistance of $120.
Weekly Trade Summary Sheet:
Weekly Price Analysis:
| USD ($) | 07 Oct 20 | 14 Oct 20 | Previous Week | Current Week | |||
| Close | Close | % Change | High | Low | High | Low | |
| BTC | $10,679.14 | $11,429.51 | 7.03% | $10,915.84 | $10,440.31 | $11,698.47 | $10,569.82 |
| ETH | $342.12 | $379.48 | 10.92% | $369.29 | $335.53 | $395.12 | $335.53 |
| BAT | $0.22 | $0.22 | -2.14% | $0.2500 | $0.2100 | $0.2278 | $0.2076 |
| ATOM | $4.89 | $5.75 | 17.59% | $5.600 | $4.590 | $6.270 | $4.590 |
| XRP | $0.25 | $0.25 | -0.22% | $0.2600 | $0.2300 | $0.2600 | $0.2426 |
| MKR | $523.17 | $556.94 | 6.45% | $600.81 | $504.22 | $597.56 | $502.35 |
| UNI | $2.97 | $3.08 | 3.70% | $4.50 | $2.48 | $3.63 | $2.48 |
| COMP | $110.44 | $107.20 | -2.93% | $124.61 | $101.19 | $120.78 | $101.01 |
Weekly Volume Analysis:
| Cryptocurrency | 1w – % Vol. Change (Global) |
| BitCoin (BTC) | 8.82% |
| Ethereum (ETH) | 22.76% |
| Basic Attention Token (BAT) | 9.70% |
| Cosmos (ATOM) | 81.28% |
| Ripple (XRP) | 21.49% |
| Maker (MKR) | -18.07% |
| Uniswap (UNI) | 10.72% |
| Compound (COMP) | 5.60% |
Weekly Price Pointers:
| Resistance 2 | $11,120 | $397 | $0.2360 | $6.10 | $0.2720 | $670.00 | $3.31 | $124.30 |
| Resistance 1 | $10,850 | $384 | $0.2280 | $5.80 | $0.2635 | $600.00 | $3.20 | $113.90 |
| USD | BTC | ETH | BAT | ATOM | XRP | MKR | UNI | COMP |
| Support 1 | $10,345 | $347 | $0.2060 | $5.00 | $0.2390 | $540.00 | $3.02 | $102.00 |
| Support 2 | $10,200 | $325 | $0.1910 | $4.45 | $0.2235 | $475.00 | $2.97 | $93.50 |
Market Updates:
- Goldman Sachs Warned It Will Soon Be Scrambling To ‘Catch Up’ On Bitcoin
- DOJ says use of privacy coins is ‘indicative of possible criminal conduct’
- NFTs take on DeFi? Nonfungible tokens push to be the next crypto craze
- Analyst: Sidelined Capital Enough To Push Bitcoin To $1 Trillion Market Cap
- The price of Bitcoin got a nice boost following a burst of enthusiasm and an influx of cash from Square.
- Michael Gord: “We are Seeing a Powerful Shift Towards Decentralization”
- SEC Commissioner Peirce Weighs in Defi Token Regulation Debate: Panel Predicts Defi Will Self Correct in Twelve Months
*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.
