20 August 2021 | ZebPay Trade-Desk
BTC has made an impressive comeback over the past week or so, up almost 50% from its recent lows. Bitcoin has been trending in an upward direction for 4 weeks straight and is on pace for its second monthly advance. In short, it’s seen its fastest 21-day advance since February, the last time it was in the middle of vaulting toward records, and many believe that this is likely to happen this time around too.
ETH plays a story no different from BTC. The asset has shown significant traction over the past few weeks and has also seen a boost in volumes. YTD ETH appreciated over 300%, outperforming Bitcoin by some margin. Altcoins too have been performing well, rallying and even beating the 2 largest assets.
Bitcoin (BTC) Technical Analysis and Chart:
At the time of writing, Bitcoin is trading around $47,075 reflecting a gain of about 6% approximately over the period of 24-hours.
The market sentiment towards the asset has turned, and gone are the days where people would say that the asset might test $20,000 levels. The cryptocurrency is defying criticism over the claims that it is not environmentally friendly, and is advancing even as regulators around the world pose a degree of risk and uncertainty. BTC is benefiting from good momentum and string volumes, which is helping tell on its current levels. We have also seen strong institutional inflows into the asset, which is also a good bullish indicator.
Bitcoin is trading in a rising wedge channel where the upper line of the channel is acting as stiff resistance and the lower line of the channel is acting as strong support. If the breakout or close occurs above the wedge with good volumes then we can expect the prices to further rally up to $53,000 and if the asset breaks the support line of the wedge then the prices may slide to the next support level which is at $42,500.
Ethereum (ETH) Technical Analysis and Chart:
At the time of writing, Ether is trading around $ 3,215 reflecting a gain of about 8% approximately over the period of 24-hours.
So far year-to-date, Ether (ETH) has outperformed Bitcoin (BTC) in terms of market performance, rising more than 320% against BTC’s 54% returns. ETH has gained over 60% in the last 30 days, and the bullish sentiment that has set it only seems to get stronger as the asset has been benefiting from strong volumes and good momentum. The rapid growth of decentralized finance (DeFi) applications has resulted in strong inflows from institutional investors.
In addition to that, the recent London hard fork brought in a new fee burn mechanism which has significantly reduced the daily net issuance. ETH witnessed a massive rally from $1,721 on July 20 to $3,340 on August 16 surging almost by 94%. Post this move, the asset is now consolidating and trading in a range from $2,950 to $3,300. The volumes are also declining which indicates indecision at these levels. Hence, we conclude that breakout on either side with good volumes will further decide the trend for the asset.
Binance Coin (BNB) Technical Analysis and Chart:
At the time of writing, BNB is trading around $431 reflecting a gain of about 8.5% approximately over the period of 24-hours.
BNB is the native token of Binance which is the world’s largest and fastest-growing exchange. The fourth-largest asset by market capitalization has rallied almost 20% week on week and is now worth $66bn at the time of writing.
This week the asset has been fairly range-bound, trading between $390 and $420. Volumes have been supportive too. The rally has indirectly contributed to larger inflows and volume in Binance, and BNB being the native coin of the exchange, is a direct beneficiary of the same. Hence, we do remain bullish on the asset.
BNB post making the low of $254 surged almost by 72% and made a high of $437. The asset has faced stiff resistance around $437 multiple times in the past and this time too the bulls are struggling to breach this level as the longer upper shadow indicates selling or profit booking. Once the breakout or close occurs above $437 with good volumes then we may expect the prices to further rally up to $500 mark.
USDT-INR Technical Analysis and Chart:
At the time of writing, USDT-INR is trading around $76.40 reflecting a loss of about 0.75% 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 75.5 to 78.5 this week. We can see USDT facing resistance at 78.5 as the upper longer shadow indicates selling at these levels.
The overall sentiment in the crypto space remains positive, but at the same time, investors remain cautious. Earlier we said that at $78 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 $78. However, given the volatility of crypto markets, over the past few weeks, we remain cautious on what might be next for the pair.
Weekly Trade Summary Sheet:
Weekly Price Analysis:
|USD ($)||12 Aug 21||19 Aug 21||Previous Week||Current Week|
Weekly Volume Analysis:
|Cryptocurrency||1w – % Vol. Change (Global)|
|Binance Coin (BNB)||27.17%|
Weekly Price Pointers:
- Global cryptocurrency exchange Binance has made regulatory compliance its top priority. The exchange is on a hiring spree to “significantly” add to its compliance and legal teams.
- Coinbase launches in Japan.
- Robinhood reported its first earnings as a public company, revealing that more new customers bought crypto than stocks.
- London-based financial services firm ETC Group will list its entire portfolio of crypto exchange-traded products (ETPs) offering exposure to Bitcoin (BTC), Ether (ETH) and Litecoin (LTC) on Austria’s national stock market.
- Speaking during a conference call about the firm’s Q2 results, United Wholesale Mortgage CEO Mat Ishbia outlined plans to accept crypto payments this year.
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.