In the most recent bull market cycle that took place at the start of 2021, BTC dominance skyrocketed to approximately 70% in January and then fell sharply to as low as 40% in May. Since then, markets have been largely bearish and range-bound, causing BTC dominance to trend between the range of 40% and 50%. Among the altcoins that are eating up the market share of BTC, Ethereum (ETH), is the second-largest asset by market capitalization, making up roughly 20% of the total crypto market share, however, it is not the fastest growing altcoin. BNB has also seen a similar trend, with its dominance falling from 5% to 3% this quarter.
Bitcoin (BTC) Technical Analysis and Chart:
At the time of writing, Bitcoin is trading around $31.914 reflecting a loss of 2.5% approximately over the period of 24-hours.
The upcoming Grayscale unlockings, coupled with the Taproot upgrade, will tempt whales to buy in, but volumes are yet to reflect that. The upside is likely to play out, but only after BTC is able to beat the stiff resistance it has been seeing at $35,000 levels. Most analysts believe that BTC has factored in most, if not all of the negative news during the May sell-off when the price fell from $60,000 to $30,000. Hence, the downside, if any, is likely to be fairly limited.
Bitcoin, post making the low of $28,800 showed signs of recovery and rallied almost by 27.3% up to $36,675. The asset faced stiff resistance around $36,500 and corrected almost by 15% making the weekly low of $31,065. Technically, BTC is trading sideways and in a broad range from $36,500 to $31,00 and Breakouts on either side with good volumes will decide the further trend for the asset.
Ethereum (ETH)Technical Analysis and Chart:
At the time of writing, Ether is trading around $1,956 reflecting a loss of about 1.5% approximately over the period of 24-hours.
Ethereum (ETH), the second-largest asset by market capitalization of $230bn, has seen a dip of almost 20% since the start of the week, falling below the $2,000 mark. After the EIP-1559 upgrade, the availability of ETH on exchanges globally will limit its circulation and result in scarcity which may drive prices up, and in fact, ETH may rise favorably against BTC. ETH is trading over 50% lower than its all-time high of $4,400 just two months ago. A convincing rally is what the asset needs to turn the bearish tide, and while that seems unlikely in the immediate future, history does tend to repeat itself.
ETH after making the low of $1,711 surged almost by 40% up to $2,409. The asset faced resistance of around $2,400 and made a ‘Doji’ candle indicating indecision in trend. Post This, ETH had corrected by almost 30%. ETH was taking support at $2,050 levels, but this week the prices breached the support of $2,050 and made the weekly low of $1863.6. Technically, ETH is trying to take support at $1,860 (78.6% Fibonacci Retracement Level). If it sustains the support level on a closing basis then we can expect some relief rally, else we may see a further downfall, and the prices may slide to the next support level of $1,711.
Binance Coin (BNB) Technical Analysis and Chart:
At the time of writing, BNB is trading around $321.5 reflecting a gain of about 4.5% approximately over the period of 24-hours.
BNB is the native token of Binance which is the world’s largest and fastest-growing exchange. One of the leading altcoins, BNB, has been range-bound this week, trading in the range of $290-$330. BNB has a market dominance of ~4% ranking 3rd among core cryptos in terms of market cap. As Binance as an exchange continues to grow and remains the leading exchange globally, BNB’s appreciation soon in likely, and in the long run, this could be a key driver of BNB’s ROI portfolio.
BNB after surging almost by 51% from the recent low of $225 resisted at $340 and corrected by 14.5% making the weekly low of $290. Technically, on the daily time frame, the asset has taken support at $290 and the lower longer shadow indicates buying around these levels. BNB has started to move up and is trying to form a ‘Higher Top Higher Bottom’ pattern. The asset has strong resistance at $345. Hence, to further rally it needs to trade and close above the resistance of $345.
USDT-INR Technical Analysis and Chart:
At the time of writing, USDT-INR is trading around $77.10 reflecting a gain of about 0.5% approximately over the period of 24-hours.
The pair is operating with a ~4% premium, compared to its traditional counterpart. This is lower than what the Indian market traditionally witnesses. This comes due to the appreciation of INR vs USD. INR has strengthened, the FED inflation rate announcement early this week. Moreover, BTC, ETH, and other altcoins fell in the second half of this week, after witnessing a slight uptrend movement in the first half of the week. This suggests that, in order to participate in the correction and to book profits during periods of corrections, first traders liquidated their assets in this pair, squared off positions, creating a one-way swing in the market, as demand for USDT spike sup to profit book, which has significantly contributed to the pair’s volatility. USDT-INR was trading in a range from 76.8 to 77.8 this week. We can see USDT facing resistance at 78. whereas 76.2 can act as important support.
The overall sentiment in the crypto space remains positive, but at the same time, investors remain cautious. Earlier we said that at $77 levels USDT/INR seems likely to sustain, and we have been more or less on point. The USDT/INR pair currently trades close to $77.10levels. We expect USDT/INR to be range-bound, most likely between $76.50-$78.50. Given that the rupee has been quite volatile the past week, coupled with the volatility of crypto markets, this week, we remain cautious on what might be next for the pair.
Weekly Trade Summary Sheet:
Weekly Price Analysis:
| USD ($) | 08 Jul 21 | 15 Jul 21 | Previous Week | Current Week | |||
| Close | Close | % Change | High | Low | High | Low | |
| BTC | $32,877 | $31,781 | -3.34% | $35,938 | $32,133 | $34,592 | $31,175 |
| ETH | $2,120 | $1,911 | -9.86% | $2,404 | $2,022 | $2,190 | $1,833 |
| BNB | $310 | $315 | 1.47% | $339 | $277 | $334 | $301 |
Weekly Volume Analysis:
| Cryptocurrency | 1w – % Vol. Change (Global) |
| Bitcoin (BTC) | -20.07% |
| Ethereum (ETH) | -20.61% |
| Binance Coin (BNB) | -17.30% |
Weekly Price Pointers:
| Resistance 2 | $42,500 | $2,651 | $380.00 |
| Resistance 1 | $36,500 | $2,400 | $340.00 |
| USD | BTC | ETH | BNB |
| Support 1 | $31,000 | $1,860 | $290.00 |
| Support 2 | $28,800 | $1,711 | $251.00 |
Market Update:
- Bitcoin’s node count has achieved another all-time high milestone with almost half of the nodes running on Tor.
- India’s Delhi High Court is looking to put a clear voiceover and a disclaimer covering 80% of the screen on crypto ads on national TV.
- France has proposed giving more power to the Paris-based European Securities and Markets Authority (ESMA) and making it responsible for cryptocurrency oversight.
- After months of deliberation, the European Central Bank has decided to proceed with a digital euro project.
*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.
