21 May 2021 | ZebPay Trade-Desk
Most cryptos have seen a turn, and come into the red this week. BTC has seen a big correction this week, trading around the $40,000 mark currently. It did fall all the way to $31,000 levels but has seen an uptrend since then. ETH has also witnessed a major correction, dipping all the way to $2,000 levels, before it started to show signs of some recovery, and now trades at $2,800 levels. Altcoins have also been volatile, with both BAT and BNB falling significantly, currently trading at $0.9 and $390 respectively.
Bitcoin (BTC) Technical Analysis and Chart:
At the time of writing, Bitcoin is trading around $40,155 reflecting a loss of about 1.15% approximately over the period of 24-hours.
After witnessing another big correction, BTC now is fairly range-bound, trading between $37,000 – $41,500. This week the asset saw a correction of ~45%, falling and hitting $31,000 levels. Since then, a significant amount of profit booking was seen, and demand surged as well, to buy at these levels. At these levels, the asset looks a lot more attractive, volumes have also 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.
We mentioned in our last week’s report that, BITCOIN has broken the range on the downside, this week we saw bears took the complete charge and the asset plunged almost 53% from its peak making the weekly low of $30,000. BTC took support at $30,000 levels and we saw a sharp pullback of almost 42% from these levels. It had taken support at this level multiple times in the past and this time too, it did the same as the candles made longer lower shadow indicating buying at lower levels. However, one needs to be cautious post the recent sell-off and keep the support and resistance levels in mind for further course of action. On the technical front, the asset will face some stiff resistance at $43,000 and $46,000 levels. For BTC, to go further up it needs to break and sustain above the resistance levels.
Ethereum (ETH) Technical Analysis and Chart:
At the time of writing, Ether is trading around $2,705 reflecting a loss of about 2.43% approximately over the period of 24-hours.
ETH too, witnessed a major correction this week, and like BTC major profit booking was seen. The sentiment continues to remain positive though, with the move from PoW to PoS as well as the upcoming protocol upgrade in sight soon. The asset fell by close to 40% this week, but volumes have sustained comparatively. Since hitting $2,000 lows, the asset has started to witness some signs of recovery and has been trading in an uptrend, currently close to $2,800 levels. 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.
Last we anticipated more weakness for ETH, this week we saw a sharp sell-off and the asset made a weekly low of $2,033.7. Post correction ETH has taken support at the ascending uptrend line and we saw the prices recovering almost 47%. On the technical front, the asset will face some resistance at $2,981 and $3,600 levels. For ETH to go further up it needs to break and sustain above the resistance level whereas if it fails to hold $2,000 levels, we may see further downside movement.
Basic Attention Token (BAT) Technical Analysis and Chart:
At the time of writing, BAT is trading around $0.870 reflecting a loss of about 0.91% approximately over the period of 24-hours.
BAT too has witnessed a major correction this week. After hitting a new ATH only recently, the asset correction of ~40% last week. Since then that asset has been pretty range-bound, trading between $0.78-$1.10. Volumes however have not been as volatile. Brave browser has seen better mass adoption among both retailers and publishers, over the past few months, and coupled with the fact that BAT is still relatively undervalued given its utility, acquiring the asset at these levels seems to look like 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.
As we can see from the daily chart above, BAT, this week after breaking the major support levels, made a weekly low of $0.567. On the technical front, the asset has made a ‘Bullish Harami’ pattern at 61.8% Fibonacci Retracement Level, However, BAT will face some resistance at $0.92 and $1.10 levels. Hence, we anticipate some sideways to bullish movement. For BAT to go further up it needs to break and sustain above the resistance level convincingly.
Binance Coin (BNB) Technical Analysis and Chart:
At the time of writing, BNB is trading around $380.5 reflecting a loss of about 2.69% approximately over the period of 24-hours.
BNB has been quite volatile this week, coupled with the fact that it has also seen a correction. It is now trading in a large range of $300 – $450 and is the native token for cryptocurrency exchange Binance. The correction it saw was roughly around 50%.BNB is the third-largest cryptocurrency by market capitalization, which is probably why volumes have held up alright, given 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 also witnessed a sharp sell-off this week and made the weekly low of $283. However, the asset managed to close above the important level of $324 (78.6% Fibonacci Retracement Level) indicating some buying at lower levels. If the prices fail to hold these levels we may see further downside on the asset.
USDT-INR Technical Analysis and Chart:
At the time of writing, USDT-INR is trading around $81.49 reflecting a loss of about 1.58% approximately over the period of 24-hours.
The pair is operating with ~13% 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 remained weak over the past few weeks and is one of the reasons for higher premiums. Moreover, BTC, ETH, and other altcoins have all seen corrections this week, followed by another slight uptrend movement. This suggests that, in order to participate in the correction 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, as demand for USDT spike sup to profit book, 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 $78.25 levels, and resistance at a level of $83.9.
The overall sentiment in the crypto space remains positive, but at the same time, investors remain cautious. Last week we said that at $81 levels USDT/INR seems likely to sustain, but we have been proved right. The USDT/INR pair currently trades at $82 levels, but we do expect a correction to come in next week, especially once the market recovers. Hence, we expect USDT/INR to fall slightly, though it may be range-bound. Given that the rupee has depreciated, coupled with the volatility of markets, this week, we remain cautious on what might be next for the pair.
Weekly Trade Summary Sheet:
Weekly Price Analysis:
| USD ($) | 13 May 21 | 20 May 21 | Previous Week | Current Week | |||
| Close | Close | % Change | High | Low | High | Low | |
| BTC | $49,716 | $40,782 | -17.97% | $59,519 | $46,000 | $51,438 | $30,681 |
| ETH | $3,715 | $2,784 | -25.06% | $4,362 | $3,370 | $4,171 | $1,953 |
| BAT | $1.19 | $0.88 | -26.05% | $1.59 | $1.09 | $1.25 | $0.57 |
| BNB | $571.43 | $393.61 | -31.12% | $690.93 | $526.60 | $614.49 | $283.45 |
Weekly Volume Analysis:
| Cryptocurrency | 1w – % Vol. Change (Global) |
| BitCoin (BTC) | 11.06% |
| Ethereum (ETH) | 4.66% |
| Basic Attention Token (BAT) | -14.29% |
| Binance Coin (BNB) | 13.79% |
Weekly Price Pointers:
| Resistance 2 | $46,000 | $3,600 | $1.100 | $513.00 |
| Resistance 1 | $43,000 | $2,981 | $0.920 | $458.00 |
| USD | BTC | ETH | BAT | BNB |
| Support 1 | $30,000 | $2,033 | $0.560 | $324.00 |
| Support 2 | $24,115 | $1,872 | $0.510 | $283.00 |
Market Updates:
- A new report from Stack Funds anticipates that Bitcoin dominance is likely to see an uptick soon, further supporting the asset’s price in the short term.
- Traders racing to exit leveraged positions on-chain appeared to drive a record spike in Ethereum gas prices, with users reporting transaction fees of more than $1,000 still got stuck.
- A recent Economic Times report revealed that the Central Government of India might set up a new panel of experts to study the possibility of regulating digital currencies in the country.
- PancakeBunny is the latest Binance Smart Chain-native DeFi protocol to suffer a vicious exploit, with more than $200 million being drained from the platform.
*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 Author is for informational purposes only and should not be treated as investment advice.
