20 November 2020 | ZebPay Trade Desk
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Cryptocurrency rally has continued this week, with BTC trading nearing highs last seen in 2018. The situation is very positive and markets are still trading above key resistance they breached last month, especially with Bitcoin above $18,000. Alt coins picture has improved considerably. Let’s look at what we have in store for a trade set-up.
Bitcoin (BTC) Technical Analysis and Chart:
At the time of writing, Bitcoin is trading around $18,128 reflecting a profit of 2.5% approximately over the period of 24-hours.
As we see in the chart above, after successfully breaching $12,000 resistance there was no stopping BTC. We think this a start of a long term Bull run BTC. Interestingly, the price has breached the bullish channel from the upside. Next resistance is near $19,800 levels.
Further longer term investors are entering the BTC market, especially institutional participants, case in point third richest person of Mexico has allocated 10% of his wealth to BTC, CME futures’s OI are reaching close to $1 Billion mark. On the technical front RSI becomes most important at these levels, which shows overbought levels at this point.
An interesting development this month has been the low volatility climb of BTC , roaring despite Gold falling with higher inflation expectations and falling USD.Just like last week, we still remain bullish on BTC after price breaching $18,000 levels. Though since RSI is flashing overbought levels, dollar cost averaging with entering the dips seems path forward, till the time RSI shows neutral level.
Ethereum (ETH) Technical Analysis and Chart:
At the time of writing, Ethereum is trading around $483 reflecting a profit of 2.39% approximately over the period of 24-hours.
As we see the chart, our bullish call at last week’s price levels worked well. ETH Currently trades above the support levels with next resistance at $500 levels.
MACD is still positive with a signal line below the MACD line, despite a strong rally of last week RSI is below overbought levels. Price is within bullish testing the upper end with successive higher highs. This is supportive of price in the near term. Price trades above 9,21 and 200 day EMA. Positive correlation with BTC will help if BTC continues it’s euphoric rally in the near term.
Just like last week, we continue to stay bullish on ETH with ETH highly likely to catch the euphoric rally we are witnessing in the BTC prices. The upside of ETH is looking exposed and we might see ETH picking up a rally upto $515 and $635 in the coming time.
The analysis will be negated if price falls below $435 levels convincingly.
Basic Attention Token (BAT) Technical Analysis and Chart:
At the time of writing, BAT is trading around $0.19630 reflecting a loss of about 1.2% approximately over the period of 24-hours.
After being stuck in the bearish channel as we showed in our last report prices have closed outside the bearish channel and have successfully breached the bearish channel and seems to be stabilizing.
MACD though negative is very close to zero and histogram has turned positive, after breaking out of bearish channel prices have not formed lower lows. RSI is on neutral levels.
Hence, unlike last week stop being nearish on the BAT, move to the cautious optimism side. This level looks a good entry point here, till the next resistance at $0.23 levels.
Analysis will be negated if prices fall within the bearish channel again.
Uniswap (UNI) Technical Analysis and Chart:
At the time of writing, UNI is trading around $3.90 reflecting a profit of about 6.8% approximately over the period of 24-hours.
As shown in the chart above, UNI had a large jump yesterday from the lows of $3.6 levels, exiting the bearish trend it has shown since the start of the month, with price closing above previous highs, the picture has turned positive.
On the technical indicator side MACD is positive with a bullish crossover resulting in a positive histogram. Even with the jump RSI is at a neutral level, which is a positive sign. With this setup we lean on the bullish side on UNI, looking at the latest rally having further legs to run till $4.25 levels.
Analysis will be negated if price closes below $3.6 levels convincingly.
USDT-INR Technical Analysis and Chart:
At the time of writing, USDT-INR is trading around 76.05 reflecting a loss of about 0.52% approximately over the period of 24-hours.
USDT-INR makes up for an interesting pair as USDT is a stable coin, hence the pair has the property of both forex and crypto.
On the technical front, indicators have continued to flash bullish signs. MACD after turning positive, has further strengthened, RSI is neutral and ADX is not confirming the trend. But as we point out in our previous reports it’s important to see what’s happening with premium, the pair had with regards to USD-INR.
Last week premium expanded a bit from 1.88% to currently just below 3%. We believe USDT being a stable coin is an easy way to gain exposure to USD. On the USD front there is a tug of war between positive vaccine news and flaring up cases in the USA. As there will be considerable lag between vaccine availability and long winter ahead
Though the resolution of Covid is negative for both premium and USD, in the near term we expect these premium levels to hold. Hence we stay cautiously bullish on USDT/INR pair, in the near term.
Weekly Trade Summary Sheet:
Weekly Price Analysis:
| USD ($) | 11 Nov 20 | 18 Nov 20 | Previous Week | Current Week | |||
| Close | Close | % Change | High | Low | High | Low | |
| BTC | $15,701.340 | $17,804.010 | $0.134 | $15,916.260 | $14,102.090 | $18,393.950 | $15,534.770 |
| ETH | $462.960 | $479.480 | $0.036 | $473.580 | $397.250 | $492.000 | $440.250 |
| BAT | $0.200 | $0.201 | $0.004 | $0.211 | $0.181 | $0.207 | $0.189 |
| XRP | $0.256 | $0.294 | $0.148 | $0.266 | $0.238 | $0.307 | $0.253 |
| UNI | $2.910 | $3.460 | $0.189 | $3.150 | $1.760 | $4.240 | $2.830 |
Weekly Volume Analysis:
| Cryptocurrency | 1w – % Vol. Change (Global) |
| BitCoin (BTC) | 8.37% |
| Ethereum (ETH) | 4.85% |
| Basic Attention Token (BAT) | 1.05% |
| Ripple (XRP) | 9.74% |
| UNI | 38.08% |
Weekly Price Pointers:
| Resistance 2 | $19,800 | $512 | $0.2230 | $3,160.0000 | $4.89 |
| Resistance 1 | $18,400 | $500 | $0.2060 | $0.3090 | $4.52 |
| USD | BTC | ETH | BAT | XRP | UNI |
| Support 1 | $17,200 | $473 | $0.1950 | $0.2840 | $3.30 |
| Support 2 | $16,500 | $446 | $0.1760 | $0.2660 | $3.18 |
Market Updates:
- As DeFi Grows, Investors Look to Polkadot to Be the Next Ethereum.
- The Bitcoin price has doubled since the halving in May, with Chainalysis attributing much of the bullish price action to the insatiable appetite of institutional investors.
- Deutsche Bank: Investors Increasingly Choose Bitcoin Over Gold to Hedge Dollar Risk, Inflation
- DAiM has launched the United States’ first employer-sponsored retirement plans that support investments in Bitcoin.
- Outgoing SEC Chair Jay Clayton reveals what’s driving the rise of BTC
*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.
