19 Nov 2021 | ZebPay Trade-Desk
The global crypto market cap (down ~2.3% day-over-day) is hovering around early November levels close to $2.7T. Bitcoin (BTC) and Ethereum (ETH) are both down over 1% again today and close to 14% from the ATHs seen just over a week ago. Fundamentally, not much has changed in the last few days that would have contributed to the bear run, which means excessive leverage draining out of the system still seems to be the primary factor pushing the market down and to the right. It was another bloodbath overnight for a few of the blue chips like SOL (-5.7%), DOT (-4.0%) and ADA (-2.9%) while most others capped losses at <1%. Aside from AVAX, there haven’t been many winners so far this week.
Bitcoin (BTC) Technical Analysis and Chart:
At the time of writing, Bitcoin is trading around $56,200 reflecting a loss of about 6% approximately over the period of 24-hours.
BTC has been fairly range-bound this week, trading in the range of $58,000- $61,000. However, over the past 24hrs, it is down by 7%, trading at $56.7K levels. The asset has a market capitalization of $1.07T, and at current prices, BTC dominance stands at 43.2%. This comes after the bullish sentiment of BTC took a turn when the SEC rejected VanEck’s Bitcoin exchange-traded product on Nov 12. Hedge Funds have been quite busy over the past few days and are buyers of BTC and ETH. Retail aggregators have had substantial volume as well and are buyers of SOL and notable sellers of BTC.
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 a sharp correction. The asset broke the key support of $62,000 fell almost by 20% from the top and made a low of $55,625. BTC has a very strong support zone from $53,500 to $54,500and we expect that the prices can bounce from these support levels. A break or close below these levels can lead to further downfall.
Ethereum (ETH) Technical Analysis and Chart:
At the time of writing, Ether is trading around $4,050 reflecting a loss of about 4.8% approximately over the period of 24-hours.
ETH is facing strong overhead resistance, and this signals that bears are trying to keep the prices down. Having said that, on-chain metrics remain strong, and volumes have been supportive too. ETH has witnessed a 6% correction in the past 24 hours, and currently, trades are at $4,000 levels. Its dominance is currently at 19.3%, with a market capitalization of $480bn. In the immediate short term, the trend seems to have become slightly bearish, as the asset is fluctuating very close to its support level of $3,950.
ETH had been trading in an uptrend for the past three months and it made an all-time high of $4,868. However, the bulls were unable to push the prices above the psychological level of $5,000 as the asset faced stiff resistance at the top and witnessed a sharp correction. The price broke the uptrend line and the 20 Day Moving Average and fell almost by 18% making the low of $3,958. Eth has very strong support at $3,900 and if the prices bounce from these levels then the bulls may resume the up move. A break or close below $3,900 may lead to the further downfall and the asset may slide to the next support level which is at $3,650.
Avalanche (AVAX)Technical Analysis and Chart
At the time of writing, BAT is trading around $98.5 reflecting a loss of about 7.5% approximately over the period of 24-hours.
Avalanche is known as a layer-one blockchain that works as a platform for decentralized applications and tailored blockchain networks. It is one of Ethereum’s rivals, aiming to oust Ethereum as the most popular blockchain for smart contracts. It aims to do this by having a higher transaction output of up to 6500 transactions per second without compromising scalability. AVAX is essentially an amalgamation of platforms. It allows various digital assets to be issued by pretty much anyone. Its USP is that AVAX allows multiple scripting languages and multiple virtual machines to interact simultaneously with each other. This mechanism provides support for a variety of nodes with different capabilities, opening up new avenues and developments of digital assets, functionalities, and capabilities in the process.
Avax post making a ‘Rounding Bottom’ pattern (that are found at the end of extended downward trends and signify a reversal in long-term price movements) started moving upwards and surged almost by 510% within three months and this week it made the all-time high of $110. However, the asset is facing resistance and the long upper shadow indicates profit booking at the higher levels. Hence, to further rally Avax needs to trade and close above the recent top.
USDT-INR Technical Analysis and Chart:
At the time of writing, USDT-INR is trading around $80.79 reflecting a gain of about 0.25% 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 red 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, as profit booking this trend shall reverse. USDT-INR after taking multiple support at 78.5 rose to 81.5. The pair is taking support at the 20 Day Moving Average and is in an uptrend.
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 $78.5 However, given the volatility of crypto markets, over the past few weeks, we remain cautious on what might be next for the pair.
Weekly Trade Summary Sheet:
Weekly Price Analysis:
| USD ($) | 11 Nov 21 | 18 Nov 21 | Previous Week | Current Week | |||
| Close | Close | % Change | High | Low | High | Low | |
| BTC | $64,949 | $59,942 | -7.71% | $68,789 | $60,163 | $66,282 | $55,705 |
| ETH | $4,730 | $4,001 | -15.43% | $4,838 | $4,335 | $4,892 | $3,959 |
| AVAX | $88.06 | $100.25 | 13.84% | $96.91 | $72.46 | $110.31 | $81.32 |
Weekly Volume Analysis:
| Cryptocurrency | 1w – % Vol. Change (Global) |
| BitCoin (BTC) | -1.14% |
| Ethereum (ETH) | 6.74% |
| Avalanche (AVAX) | 45.49% |
Weekly Price Pointers:
| Resistance 2 | $69,000 | $4,850 | $125.00 |
| Resistance 1 | $62,000 | $4,400 | $110.00 |
| USD | BTC | ETH | AVAX |
| Support 1 | $53,500 | $3,900 | $91.00 |
| Support 2 | $48,500 | $3,650 | $78.00 |
Market Updates:
- One of the most successful baseball teams in Australia, the Perth Heat, is adopting the bitcoin standard. The team will pay players and staff in bitcoin, accept the cryptocurrency for payments, and hold bitcoin on its balance sheet.
- Avalanche (AVAX) rose to a new price high on Nov. 18 and posted weekly gains after its developer, Ava Labs, entered a partnership with “Big Four” accountant firm Deloitte.
- On Thursday morning, Acala, a decentralized finance (DeFi) protocol operating on the Polkadot (DOT) network, announced it had won the first-ever Polkadot parachain auction.
- On Wednesday, the world’s largest collector car auction house by total sales, RM Sotheby’s, announced the company will be accepting cryptocurrency payments via Bitpay.
- In his first public comments on cryptocurrencies, Prime Minister Narendra Modi on Thursday warned that bitcoin presents a risk to younger generations as his government prepares to introduce legislation to regulate digital currencies.
*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.
