04 June 2021 | ZebPay Trade-Desk
Over the two past weeks, Bitcoin has witnessed a major correction. The asset witnessed the much-anticipated correction, and it fell from its all-time high of $64,863, in the previous month, and currently trades at $37,000 levels. Ethereum too has trended in a similar fashion. The second-largest asset by market capitalization, Ethereum, also witnessed a major correction, falling from $4,300 levels to lows of $1,750. Since then though, an upward trend has set in, and ETH has gradually come up to $2,700 levels as of now. Altcoins also faced a similar trend, first witnessing major falls, before showing signs of recovery, with BNB paving the way forward.
Bitcoin (BTC) Technical Analysis and Chart:
At the time of writing, Bitcoin is trading around $36,800 reflecting a loss of about 6% approximately over the period of 24-hours.
After witnessing a big correction, BTC has now started its recovery journey upward, trading between $36,000 – $38,000. This week the asset saw a rally of ~10% and hit $38,000 levels. Volumes have held up well, and the bearish sentiment has also gradually started to change. At these levels, the asset still looks attractive, and traders are continuing 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.
Bitcoin, last week showed good signs of recovery, however, the asset tested the resistance multiple times but failed to break and sustain above it. Technically on the 12-hour time frame, BTC is trading sideways in a ‘Symmetrical Triangle’ pattern (During this period of indecision, the highs and the lows seem to come together at the point of the triangle with virtually no significant volume). Hence, Breakouts on either side with good volumes will further decide the trend.
Ethereum (ETH) Technical Analysis and Chart:
At the time of writing, Ether is trading around $2,640 reflecting a loss of about 7% approximately over the period of 24-hours.
ETH, after witnessing a correction, has started on an upward trend, and currently trades at $2,700 levels. The week has been range-bound for the asset, between $2,450-$2,750. 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 appreciated by over 15% this week, vs last week, and volumes have held up well too. 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.
ETH, post-correction has started moving upwards. However, the asset is not able to sustain above the $2,900 mark and has been trading sideways this week. Technically, ETH is trading in an uptrend, Moving Averages has given a bullish crossover and RSI is also near 50 indicating strength. For the prices to further rally, it needs to break and sustain above the crucial resistance level of $2,981 whereas $2,500 would be an important support level to watch out for.
Basic Attention Token (BAT) Technical Analysis and Chart:
At the time of writing, BAT is trading around $0.75 reflecting a loss of about 9% approximately over the period of 24-hours.
BAT has started riding the recovery wave too. The asset has recovered almost 20% and currently trades at $0.76 levels. The asset has been pretty range-bound, trading between $0.75-$0.88. Volumes have also seen a slight recovery since the previous week. 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. Moreover, as the Brave browser continues to see larger adoption among the general public, being the underlying asset BAT is likely to benefit from this too.
BAT, last week post-recovery faced stiff resistance at a crucial level of $0.92 and corrected almost 30% to $0.64. This week the asset is majorly trading sideways from $0.84 to $0.72 levels with volumes also being on the lower side. Breakouts on either side with good volumes will further decide the trend for BAT.
Binance Coin (BNB) Technical Analysis and Chart:
At the time of writing, BNB is trading around $380 reflecting a loss of about 10% approximately over the period of 24-hours.
BNB has led the recovery trend among altcoins. The asset is up by more than 40% compared to the previous week and currently trades at $380 levels. Volumes have also shown good growth, and investor confidence in the asset is strong as well. 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 chart above, BNB after taking support around $300 levels started to upwards make ‘Higher Top Higher Bottom’ formation and made a weekly high of $433. However, the asset resisted at these levels and is witnessing some profit booking. We anticipate the uptrend to continue until it trades above the support level of $350.
USDT-INR Technical Analysis and Chart:
At the time of writing, USDT-INR is trading around $77 reflecting a loss of about 2% approximately over the period of 24-hours.
The pair is operating with a ~7% premium, compared to its traditional counterpart. This is usually what the Indian market traditionally witnesses. This comes thanks to the slight recovery INR has shown vs USD, which has made the pair more competitive. Moreover, BTC, ETH, and other altcoins have all seen corrections over the past 2 weeks, followed by another uptrend movement, as the recovery has started to set in. 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. USDT-INR is trading in a downtrend this week. We can see USDT is taking support at $76 levels, and resistance at a level of $79.
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, and we have been right. The USDT/INR pair currently trades at $77.50 levels. We, expect USDT/INR to fall slightly, though it may be range-bound. Given that the rupee has appreciated, coupled with the volatility of markets, this week, we remain cautious on what might be next for the pair.
Weekly Trade Summary Sheet:
Weekly Price Analysis:
| USD ($) | 27 May 21 | 03 Jun 21 | Previous Week | Current Week | |||
| Close | Close | % Change | High | Low | High | Low | |
| BTC | $38,556 | $39,248 | 1.79% | $42,600 | $31,111 | $39,489 | $33,333 |
| ETH | $2,741 | $2,855 | 4.16% | $2,989 | $1,755 | $2,889 | $2,178 |
| BAT | $0.84 | $0.83 | -1.66% | $0.92 | $0.56 | $0.85 | $0.63 |
| BNB | $369.67 | $428.00 | 15.78% | $423.23 | $211.00 | $433.00 | $291.00 |
Weekly Volume Analysis:
| Cryptocurrency | 1w – % Vol. Change (Global) |
| BitCoin (BTC) | -28.08% |
| Ethereum (ETH) | -25.83% |
| Basic Attention Token (BAT) | -21.90% |
| Binance Coin (BNB) | -18.81% |
Weekly Price Pointers:
| Resistance 2 | $42,500 | $3,448 | $0.920 | $458.00 |
| Resistance 1 | $40,800 | $2,981 | $0.840 | $433.00 |
| USD | BTC | ETH | BAT | BNB |
| Support 1 | $35,650 | $2,525 | $0.720 | $348.00 |
| Support 2 | $33,337 | $2,189 | $0.630 | $306.00 |
Market Updates:
- Miami Mayor says he wants “a Miami that lasts forever” as he announces Blockchain.com’s move to Miami.
- BTC demand via Grayscale Bitcoin Trust is dropping for several key reasons.
- The Reserve Bank of India (RBI) on May 31 asked banks not to cite its 2018 order as a reason to deny banking services to customers who dealt in cryptocurrencies.
- Data analytics website, DeepDAO, has secured $3 million from notable investors to expand its data suite for tracking decentralized autonomous organizations.
- Crypto custody bank Anchorage Digital is expanding its services into crypto-backed loans for institutional investors.
*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.
