13 August 2021 | ZebPay Trade-Desk
Bitcoin (BTC) has rallied over 20% over the past week, as it crossed the $46,000 mark, and topped off at $46,450. This is the highest level the asset has been at since the mid-May sell-off that took place. The rally was supported by good volumes and momentum, and we have seen whales buy even at these higher levels which is a bullish sign for the asset.
ETH too has recovered significantly this week, up close to 15% on a week on week basis, and has since been quite range bound. The overall sense in the market is turning bullish, but one still must be cautious over the next few days. The leading altcoin BNB too has seen a rally and is closing on the $400 mark rapidly.
Bitcoin (BTC) Technical Analysis and Chart:
At the time of writing, Bitcoin is trading around $45,225 reflecting a loss of about 1.9% approximately over the period of 24-hours.
On-chain metrics are also good, with new BTC entities participating in the rally, coupled with the fact that inventors are holding on to their positions and not looking to book profits. Despite the surge, however, investors remain cautious, as some believe that regulation could erase some of the recent gains, especially after the proposal submitted to the US Treasury Services which suggests that digital asset transactions worth more than $10,000 should be reported to the Internal Revenue Service (IRS), including validators, miners, and protocol developers. However, good volumes and momentum continue to remain a bullish sign, and we anticipate BTC to be able to hold these levels.
As per the weekly chart, BTC is trading in an uptrend making ‘Higher High Higher Low’ formation and has been in green for four straight weeks. The asset has surged almost by 60% from $29,301 to $46,781. Currently, BTC is trading and consolidating near its 12 week high and may face resistance at these levels. Hence, we conclude that BTC needs to trade and sustain above $46,750 on a closing basis to further rally.
Ethereum (ETH) Technical Analysis and Chart:
At the time of writing, Ether is trading around $ 3,123 reflecting a loss of about 3.21% approximately over the period of 24-hours.
Ether (ETH) crossed the psychological level at $3,000 on Aug. 7, a signal that the correction might actually be over. The bears tried to stop the rally by pulling the price back below $3,000 but the buyers held their ground. We anticipate that the bull will now try to resume the uptrend, citing levels of $3,500 and then to the psychological resistance at $4,000. Since the fork that took place last week, the network has been witnessing a heavy load since the upgrade took place last week, which has resulted in a lot more gas being burnt. This results in deflationary blocks being produced and the supply temporarily decreases, which in turn creates an upward price pressure on the asset, though just for a short period of time.
ETH made a ‘Double bottom’ or a ‘W’ pattern at $1,720 with a neckline of $2,400. The asset resisted a couple of times around these levels but once it was breached the bulls grabbed the opportunity with both hands and the prices rallied and made the high of $3272. ETH surged almost by 90% from its recent low within 25 trading sessions. Currently, the asset is consolidating near the highs and trading between $3,200 to $2,975 indicating indecisiveness on the part of bulls to continue its juggernaut for the moment.
Binance Coin (BNB) Technical Analysis and Chart:
At the time of writing, BNB is trading around $393 reflecting a loss of about 2.36% approximately over the period of 24-hours.
BNB is the native token of Binance which is the world’s largest and fastest-growing exchange. The third largest asset by market capitalization has rallied almost 20% week on week, and is now worth $67bn at the time of writing. The rally is fueled by good momentum, as well as a significant improvement in volumes too. The asset has seen the bulls take charge and drive prices up, close to the $400 mark. The asset does see a resistance at $430 levels, but if bulls continue to take charge, and cross this level, $550 doesn’t leave unachievable. Being the largest crypto exchange, is likely to benefit from higher volumes, given the uptrend in the market, which would indirectly impact its underlying native coin, BNB, and this might be the reason why we are seeing the asset hold strong at these levels.
BNB post making the low of $254 surged almost by 60% and made a high of $408.7. The asset has a strong resistance around $408 to $433. Currently, the asset is consolidating near its crucial levels, once the breakout or close occurs above $433 with good volumes then we may expect the prices to further rally upto $500 mark.
USDT-INR Technical Analysis and Chart:
At the time of writing, USDT-INR is trading around $76.65 reflecting a gain of about 0.45% 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. Crypto markets have been in the green, and this is probably the reason why we have seen USDT/INR pair fall a little and reduce premiums. Typically, when prices start to rise, people liquidate USDT, in exchange for INR to buy into the rally. This upward selling pressure washes off premiums. If however, some profit booking is seen we can anticipate that the premiums shall return, the extent of that though remains unknown. Hence WoW, the pair has been fairly stiff. USDT-INR was trading in a range from 73.5 to 77 this week. We can see USDT facing resistance at 78 whereas 74 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 $76.50 levels. We expect USDT/INR to be range-bound, most likely between $75 and $78. However, given the volatility of crypto markets, over the past few weeks, we remain cautious on what might be next for the pair.
Weekly Trade Summary Sheet:
Weekly Price Analysis:
|USD ($)||05 Aug 21||12 Aug 21||Previous Week||Current Week|
Weekly Volume Analysis:
|Cryptocurrency||1w – % Vol. Change (Global)|
|Binance Coin (BNB)||12.87%|
Weekly Price Pointers:
- Crypto holders in the United States, Canada and now Australia can generate tax reports using the exchange.
- About $258 million worth of stolen crypto assets have been returned so far, and the hacker claims they are keeping the rest of the funds safe while they negotiate with Poly.
- More than $1 billion in fees has been generated for Uniswap’s liquidity providers since its November 2018 launch.
- Coinbase generated a record net revenue of $2 billion from transactions, subscriptions, and services in the second quarter of 2021 as the platform’s monthly transacting users (MTUs) increased by 8.8 million – up 44% from Q1.
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