14 May 2021 | ZebPay Trade-Desk
It has been a pretty volatile week for cryptos this week. BTC was fairly range-bound early this week, trading around the $58,000 mark. However, during the second half of the week, a correction set in and since then it fell to $47,000 levels, before slightly recovering again, now at $50,000 levels. ETH on the other hand has been experiencing another impressive rally. It rallied all the way up to $4,300 levels, before consolidating a little and witnessing a correction. However, even then, the rally is impressive and it trades at $3,900 levels currently. Altcoins have also been volatile, BNB especially, fluctuating between $535-$650. BAT too has been volatile and has been moving in the range of $1.15 to $1.35 through most of this week.
Bitcoin (BTC) Technical Analysis and Chart:
At the time of writing, Bitcoin is trading around $50,140 reflecting a gain of about 0.91% approximately over the period of 24-hours.
Since its correction last week, BTC started off well and was fairly range-bound, trading between $56,000 – $58,500. However, the second half of this week, saw a pretty significant correction come in BTC. BTC price fell by almost 20% and hit $47,500. Tesla has withdrawn BTC as a means of payment, which might have also influenced this. At these levels, the asset looked a lot more attractive, volumes picked up a little, as traders started to buy-in. This resulted in an uptrend, which currently persists and has driven prices up. As the asset continues to go more mainstream, and adoption among investors and institutions increases, BTC will remain an attractive asset.
Last week we mentioned in our report that Bitcoin is trading in a range and breakouts on either side will decide the further trend. As we can see from the daily chart above, the asset has broken the range on the downside making the weekly low of $46,000. On the technical front, Bitcoin has made a ‘Doji’ like pattern which indicates uncertainty. Hence, $52,369 and $59,500 are crucial resistance levels whereas $46,000 and $43,016 will be important support levels to watch out for.
Ethereum (ETH) Technical Analysis and Chart:
At the time of writing, Ether is trading around $3,855 reflecting a gain of about 3.55% approximately over the period of 24-hours.
ETH continues to rally upward, and it hit a new ATH this week of $4,362, but has since fallen by about 10% and trades at $3,900 levels now. The sentiment continues to remain bullish, with the move from PoW to PoS as well as the upcoming protocol upgrade in sight soon. The S&P Dow Jones Indices launched new cryptocurrency indices which have further contributed to mainstreaming digital currencies and better-instilling investor confidence and belief. Thanks to its wide applicability in the DeFi space, coupled with the significantly lower cost of acquisition compared to its counterpart BTC, the asset is poised for success.
As we can see from the daily chart above, ETH is trading in an uptrend and every dip in the prices is seen as an accumulating opportunity. This week the asset made a new all-time high of $4,373. Post this feat, we saw some profit booking and prices plunged by almost 18%. On the technical front, ETH has made a ‘Bearish Engulfing’ pattern (Trend Reversal Pattern) so we anticipate more weakness until the next support levels are tested, so $3,374 and $2,976 will act as important support levels. We can see a further downside if the asset fails to take support at the above-mentioned levels.
Basic Attention Token (BAT) Technical Analysis and Chart:
At the time of writing, BAT is trading around $1.21 reflecting a gain of about 1.45% approximately over the period of 24-hours.
BAT has now crossed $2nb in market cap. After hitting a new ATH, the asset saw a correction of ~40% last week, but soon after witnessed an uptrend. However, since then that asset has been pretty range-bound, trading between $1.15-$1.35. Volumes haven’t been as volatile, and continue to show good resilience, and are holding up well. As the Brave Browser continues to see better mass adoption among both retailers and publishers and coupled with the fact that BAT is still relatively undervalued given its utility, one can acquire at current price levels as it remains a highly attractive proposition for long term investors. In addition, as the ERC-20, and DeFi space continues to grow, this asset is poised for success.
We mentioned in our previous report that BAT can face resistance at $1.648 levels. This week, as we can see from the daily chart above, BAT failed to break the resistance of all-time high of $1.64, and the price plunged by almost 30% making the weekly low of $1.09. On the technical front, the asset has taken support at 38.2% Fibonacci Retracement Level. Hence, $1.31 and $1.64 are important resistance levels whereas $1.10 and $0.924 are the crucial support levels to watch out for.
Binance Coin (BNB) Technical Analysis and Chart:
At the time of writing, BNB is trading around $594 reflecting a gain of about 4% approximately over the period of 24-hours.
BNB has been quite volatile this week, trading in a large range of $535 – $660, and is the native token for cryptocurrency exchange Binance. It did set a new ATH this week of $690 but has since a rather significant correction of about 15%, and trades at $600 levels now. The recent BNB burn did not impact prices much, so we anticipate that this fall is a direct consequence of the tremendous rally the asset has been witnessing the past few weeks. BNB is the third-largest cryptocurrency by market capitalization, which is nearly $100 billion. It continues to witness good resilience with respect to volumes, thanks to the spike in interest within the crypto community for this asset. As Binance as an exchange continues to grow and remains the leading exchange globally, BNB’s appreciation seems justified, and in the long run, this could be a key driver of BNB’s ROI portfolio.
As we can see from the daily chart above, BNB after consolidating at higher levels has given a breakout on the downside and the asset has corrected almost 23.7% making the weekly low of $526.6. On the technical front, BNB can take support at the $ 513 level (38.2% Fibonacci Retracement Level). If the asset fails to take support at this level we may see further downside move and the price may fall to the next support level which is at $ 458.37.
USDT-INR Technical Analysis and Chart:
At the time of writing, USDT-INR is trading around $80 reflecting a loss of about 3.5% approximately over the period of 24-hours.
The pair is operating with ~11% premium, compared to its traditional counterpart. This is significantly higher than what the Indian market traditionally witnesses, and is also higher compared to the previous week as well. The Indian Rupee has weakened over the past week and is one of the reasons for higher premiums as compared to the previous week. Moreover, BTC, ETH, and other altcoins have been very volatile this week, witnessing rallies, and then corrections this week, followed by another uptrend movement. This suggests that, in order to participate in the upward rally 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 at different times, which has significantly contributed to the pair’s volatility, and hence the immense appreciation in the USDT-INR pair week on week basis. USDT-INR is trading in an uptrend this week. We can see USDT is taking support at $77 levels, and resistance at a level of $83.
The overall sentiment in the crypto space remains positive, but at the same time, investors remain cautious. Last week we said that at $78 levels USDT/INR seems likely to sustain, but we have been proved wrong. The USDT/INR pair currently trades at $81 levels, but we do expect a correction to come in next week. Hence, we expect USDT/INR to fall slightly, though it may be range-bound. Given that the rupee has depreciated, coupled with the volatility of markets, this week, we remain cautious on what might be next for the pair.
Weekly Trade Summary Sheet:
Weekly Price Analysis:
|USD ($)||06 May 21||13 May 21||Previous Week||Current Week|
Weekly Volume Analysis:
|Cryptocurrency||1w – % Vol. Change (Global)|
|Basic Attention Token (BAT)||17.20%|
|Binance Coin (BNB)||-9.38%|
Weekly Price Pointers:
- A court in northern California has ordered Kraken to provide information on users who traded more than $20,000 between 2016 and 2020 to the IRS.
- TEL price broke out into a vertical rally after a protocol upgrade and a layer-2 migration that enabled trading on QuickSwap.
- Switzerland-based crypto bank SEBA is adding support for three defi tokens, bringing the number of cryptocurrencies available on its platform to a total of nine. SEBA clients are able to buy, store and trade with fiat any of these cryptos.
- The U.S. Securities and Exchange Commission (SEC) has brought 75 enforcement actions against companies and individuals in the crypto industry so far, according to a new report by Cornerstone Research. The agency also brought 19 trading suspension orders against digital asset market participants, and 43 were litigated in U.S. district courts.
- Facebook-initiated Diem Association announces a new model of its upcoming stablecoin that is set to be issued by California state-chartered bank Silvergate.
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 Author is for informational purposes only and should not be treated as investment advice.