Weekly Trade Summary Report

11 June 2021 | ZebPay Trade-Desk

This week, Bitcoin has been quite volatile. The asset fell from $39,000 levels to $31,000 levels, before recovering and currently trading at $37,000 levels. Ethereum has been pretty range-bound this week. The second-largest asset by market capitalization, Ethereum, fluctuated in the range of $2,350-$2,600. In the second half of the week, an upward trend has set in, in the markets. Altcoins also faced a similar trend, first witnessing 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 $37,250 reflecting a gain of 1% approximately over the period of 24-hours.

BTC has been on a volatile price spree. The asset has been fluctuating between $31,000 – $38,000 this week. This week the asset saw a rally of ~20%, in the second half of the week and hit $37,000 levels. Volumes have held up well, but the bearish sentiment is still present. At these levels, the asset still looks attractive, and traders are continuing to buy in. As BTC was legalised in El Salvador, it has 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 was consolidating and was trading sideways in a ‘Symmetrical Triangle’ pattern. This week the asset gave a breakout on the downside and we saw a sharp fall as the prices made the weekly low of $31,004.95. Technically, on the daily time frame, the asset has made a ‘Dragonfly Doji’ (Trend Reversal) pattern where the lower longer shadow indicates buying at the crucial support level of $31,111. Hence, to conclude, we may see some pullback until these support levels are maintained and for further upside, the asset needs to break and sustain above the resistance level of $42,500 levels.

Ethereum (ETH) Technical Analysis and Chart:

At the time of writing, Ether is trading around $2,490 reflecting a loss of about 3% approximately over the period of 24-hours.

ETH has been range-bound, in the range of $2,350 – $2,600. 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 20% this week, since the start of the week, and volumes have also shown signs of a good recovery. 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 making the low of $1,755 witnessed a sharp relief rally and surged almost by 66% up to $2,915. The bulls, however, have failed to manage a grip on the asset and were not able to break the resistance, and hence the prices retraced almost by 25% from these levels. Technically, on the daily time frame, ETH is consolidating and trading in a broad range from $2,350 to $2,900 levels. Breakouts on either side with good volumes will further decide the trend for the asset.

Binance Coin (BNB) Technical Analysis and Chart:

At the time of writing, BNB is trading around $360 reflecting a loss of about 2% approximately over the period of 24-hours.

BNB has led the recovery trend among altcoins since the market reset took place. The asset saw a quick recovery, as it skyrocketed from $225 levels to $430 levels, within a week, before witnessing a correction again and currently trades at $350 levels. Volumes have shown good resilience, and we haven’t seen much profit booking when prices fell, indicating that the asset is viewed as an investment avenue, and to be held long term. Investor confidence in the asset is strong as well. BNB is the third-largest cryptocurrency by market capitalization, which currently stands at $60bn. 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, BNB last week made ‘Higher Tops Higher Bottom’ formation and surged up to $433. However, the prices resisted at these levels and retraced almost 26%, and made the weekly low of $319. Technically, BNB has started to trade in an uptrend and the ascending uptrend line is acting as the support levels for the asset. Hence, we expect the trend to continue unless the support levels are broken.

USDT-INR Technical Analysis and Chart: 

At the time of writing, USDT-INR is trading around $76.75 reflecting a loss of about 2% approximately over the period of 24-hours.

The pair is operating with a ~8% 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 fell early this week, before witnessing an uptrend movement in the second half of the week, 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 range of $76 to $77.25 this week. We can see USDT is taking support at 76 levels, and resistance at a level of $77.5.

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 more or less on point. The USDT/INR pair currently trades close to $77 levels. We expect USDT/INR to fall slightly, though it may be range-bound, most likely between $76.50-$77.50. 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:

Weekly Volume Analysis:

Weekly Price Pointers:

Market Updates:

1. The Danish tax ministry is reportedly mulling over revising the country’s tax law to deal with the challenges posed by cryptocurrencies. 
2. Vitalik Buterin has recounted how he turned $25,000 into $4.3 million in three years by investing in DOGE.
3. El Salvador became the first country in the world to adopt bitcoin as legal tender after Congress on Wednesday approved President Nayib Bukele’s proposal to embrace the cryptocurrency, a move that delighted the currency’s supporters.
4. Global digital currency exchanges are exploring ways to set up in India, following in the footsteps of market leader Binance, industry sources told Reuters.
5. Financial authorities in Hong Kong have announced the second phase of trials for mainland China’s digital currency.

*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.