12 Nov 2021 | ZebPay Trade-Desk
The markets over the past two weeks have been largely in the green, seeing most major assets achieving new ATHs. Volumes across the board have been impressive, and inflows continue to remain good. The overall picture is fairly optimistic, and the bullish stance continues to prevail. Having said that, a slight correction does seem to have set in over the past day or two, but even that hasn’t slowed things down. The macroeconomic landscape seems to look good too, which has also been favouring the growth of the sector as the industry is approaching the $3T capitalization mark.
Bitcoin (BTC) Technical Analysis and Chart:
At the time of writing, Bitcoin is trading around $64,900 reflecting a gain of about 0.5% approximately over the period of 24-hours.
Markets seem to be witnessing a correction this morning, as their overall crypto space is currently valued at $2.75T vs $2.9T when BTC hit a new ATH of $69k. The asset is up 6% over the past week and is witnessing strong inflows and volumes at current levels which is a strong fundamental sign. November appears to have done a good job picking up the bull run-torch from October. BTC dominance is up to 43.5%, and the asset has a market capitalization of $1.23T at the time of writing. However, since then traders began to book profits, causing more than a -$7,000 drop amongst the sell-off, which led to BTC prices falling below $63K, and currently trades around the $65k mark.
BITCOIN after consolidating gave a breakout on the upside and made the new all-time high of $69,000. However, the asset was not able to breach the psychological level of $70k and witnessed some profit booking. Technically, on the daily time frame, BTC is making ‘Spinning Top’ and ‘DOJI’ candles with declining volumes which indicates indecision. To further rally the asset needs to trade and close above the $70k mark whereas $60,000 will act as a crucial support level for the asset.
Ethereum (ETH) Technical Analysis and Chart:
At the time of writing, Ether is trading around $4,765 reflecting a gain of about 3% approximately over the period of 24-hours.
After the US Bureau of Labor Statistics showed a sharp 6.2% annual rise in its CPI, the highest in 30 years, both BTC, and ETH saw a rally set in and hit ATH’s of $69,000 and $4,868 respectively. BTC and ETH are similar as to what we see in Gold prices, which lept 4.7%. This should be unsurprising as higher-than-expected inflation triggers a knee-jerk reaction to accumulate scarce assets. Much of the appreciation that ETH has seen from the July lows can be credited to Defi projects accumulating more total value locked (TVL) and to the disinflationary mechanism introduced in EIP-1559. The asset currently has a dominance of 19.5%, with a market capitalization of $567bn. Despite the significant rally, the asset continues to witness good inflows, and volumes have also held up.
ETH has been trading in an uptrend and this week the prices touched the new all-time high of $4,864.9. However, the asset witnessed some profit booking at the higher levels. Technically, ETH has made a ‘Spinning TOP’ candle at its peak which indicates indecisiveness on the part of bulls to continue its juggernaut for the moment. This indecision can signal more sideways movement or a possible reversal. To further rally the asset must break or close above the recent high of $4,864.
Basic Attention Token (BAT)Technical Analysis and Chart
At the time of writing, BAT is trading around $1.146 reflecting a gain of about 5.5% approximately over the period of 24-hours.
Basic Attention Token, or BAT, powers a new blockchain-based digital advertising platform, Brave Browser. It has been designed to fairly reward users for their attention while providing advertisers with a better return on their ad spend. Following Monday’s announcement that the Brave browser will integrate itself with Solana, the native token BAT surged more than 25%. Since then the asset has seen a correction and trades at $1.1 levels. Together the teams will bring wallet features for the Solana blockchain into Brave’s Web2 desktop and mobile browsers.
BAT after consolidating between $0.6 to $0.75 gave a massive breakout and made the high of $1.146. The asset faced stiff resistance around $1.5 and corrected 34% from its recent high and again started consolidating. BAT gave a breakout above the range but was unable to breach the resistance 0f $1.15 on the second attempt and witnessed profit booking at higher levels. Currently, the asset is trying to take support at the crucial level of $1, if it holds and sustains above the support then the bulls may resume the up move. Hence, to further rally BAT needs to trade and close above $1.5.
USDT-INR Technical Analysis and Chart:
At the time of writing, USDT-INR is trading around $80.02 reflecting a loss of about 0.2% approximately over the period of 24-hours.
The pair is operating with a ~9% premium, compared to its traditional counterpart. This is higher than what the Indian market traditionally witnesses. Crypto markets have been in the green most of this week. This is probably the reason why we have seen USDT/INR pair premiums at these levels. At the start of the rally, the demand for USDT is much higher as traders want to participate in the uptrend, traders and investors buy-in, demand for the assets rise, and hence the premiums. Upon a correction, we anticipate the trend to reverse, and might see premiums fall.
USDT-INR after taking multiple support at 78.5 rose to 81.5. However, the pair is struggling to sustain above 81 as a longer upper shadow indicates selling at higher levels. A break below 78.5 may lead the prices to slide further down.
The overall sentiment in the crypto space remains positive, but at the same time, investors remain cautious. We expect USDT/INR to be range-bound, most likely between $80.5 and $78.5 However, given the volatility of crypto markets, over the past few weeks, we remain cautious on what might be next for the pair.
Weekly Trade Summary Sheet:
Weekly Price Analysis:
| USD ($) | 04 Nov 21 | 11 Nov 21 | Previous Week | Current Week | |||
| Close | Close | % Change | High | Low | High | Low | |
| BTC | $61,452 | $64,950 | 5.69% | $64,243 | $59,659 | $68,742 | $60,164 |
| ETH | $4,537 | $4,730 | 4.25% | $4,665 | $4,161 | $4,860 | $4,335 |
| BAT | $0.98 | $1.12 | 14.82% | $1.45 | $0.69 | $1.39 | $0.95 |
Weekly Volume Analysis:
| Cryptocurrency | 1w – % Vol. Change (Global) |
| BitCoin (BTC) | 3.54% |
| Ethereum (ETH) | -7.22% |
| Basic Attention Token (BAT) | -44.62% |
Weekly Price Pointers:
| Resistance 2 | $75,000 | $5,100 | $1.50 |
| Resistance 1 | $69,000 | $4,865 | $1.30 |
| USD | BTC | ETH | BAT |
| Support 1 | $60,000 | $4,400 | $1.00 |
| Support 2 | $57,000 | $3,950 | $0.93 |
Market Updates:
- The race to establish America’s biggest crypto hub is intensifying, with Miami emerging as a front-runner by generating millions of dollars in yield from staking Miami Coin.
- Twitter has set up a team to focus on “crypto, blockchains, and other decentralized technologies — including and going beyond cryptocurrencies.”
- Solana Ventures, the investment arm of the Solana blockchain, FTX, and Lightspeed, a venture capital firm, have announced the launch of a joint web3 gaming initiative.
- Austrian authorities have indicated their intention to tax gains from digital asset investments just like those from stocks and bonds. The move is expected to increase trust and access to cryptocurrencies.
- The Ethereum Name Service (ENS), the entity that controls the decentralized domains built on top of Ethereum, announced it would pivot to a decentralized governance model, opening the door to the formation of a DAO.
*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.
