Weekly Trade Report: A positive crypto sentiment?


12 March 2021 | ZebPay Trade-Desk

Bitcoin has seen an upward movement this week trading between $50,000-$57,000. The largest crypto asset by market capitalization continues to witness good volumes. Ether has also seen similar trends, trading between $1,600-$1,850. Institutional flows continue to remain strong, which is reflected by upheld volumes. Altcoins have also shown a positive trend, with BAT first recovering from its rally, and then moving upwards again, hitting a new ATH. Let’s have a look at what some of these assets have in store for us.

Bitcoin (BTC) Technical Analysis and Chart:

At the time of writing, Bitcoin is trading around $57,306.81 reflecting a loss of about 0.85% approximately over the period of 24-hours.

Bitcoin has seen an upward movement this week, gaining over 12% over the previous week. BTC continues to see strong inflows, and interest among the crypto community is high in the asset, reflected by strong volumes. Traders have accumulated on the dip, reflecting a strong positive sentiment overall.

As per the chart above, so far we have been seeing with BITCOIN that every time there is a correction, the prices fall to the support levels and the bulls take control. This time also, we can see that post-correction from its peak, Bitcoin took support at 50% Fibonacci levels and bounced to make a weekly high of $58,113. Although it’s at high, the asset is still trading below its resistance level of $58,367. We had mentioned in our report last week that BITCOIN had made a Bearish Belt Hold pattern on a weekly time frame and the pattern is still valid till the asset manages to break it’s all-time high convincingly.

Hence, we conclude that currently Bitcoin is facing resistance and for further upside, it needs to trade and sustain above $58,367. If it fails to do so, we may see some downfall in the asset.

Institutional flows remain good, and the picture remains positive. Tactically $46,638 and $43,016 are acting as good support and dips accumulation remains an attractive strategy.

Ethereum (ETH) Technical Analysis and Chart:

At the time of writing, Ethereum is trading around $1,810 reflecting a loss of about 1% approximately over the period of 24-hours.

ETH has also seen an upward movement this week, and currently at $1,800 levels.  Since the correction took place early this month, the asset first saw a big fall to $1,300 levels, recovering after to $1,850 levels. This is primarily due to the investor sentiment and belief in that asset, and hence volumes on dips have significantly driven prices upwards. As more DApps continue to be built on the Ethereum blockchain, the asset is likely to only gain more traction, and hence our outlook remains bullish.

As per our previous reports, ETH, post corrections has bounced from crucial support of $1,300 levels. This week the bulls took control and made the weekly high of $1,879.2.

As per the daily chart, post making higher tops higher bottoms for four consecutive sessions, ETH is now consolidating between $1.879 (78.6% Fibonacci retracement level) and $1,754 (61.8% Fibonacci retracement level) which indicates that the asset is currently range bound and facing some stiff resistance at higher levels, and for further upside, the resistance level needs to be broken. If it fails to hold the support at 61.8% Fibonacci, we may see some downward movement in the asset.  

ETH may see a bull run if it breaks the resistance level of $1,879 and $1,982.

Basic Attention Token (BAT) Technical Analysis and Chart:

At the time of writing, BAT is trading around $0.783 reflecting a loss of about 2.48% approximately over the period of 24-hours.

After hitting a phenomenal milestone of a market capitalization of $1bn recently, BAT has shown good resilience and has continued to maintain upward momentum, after seeing a small dip. Volumes continue to impress, and the asset has gained significant investor interest, over the past few weeks.

As we mentioned in our earlier report that we may see an upward movement in the asset once it tests the support zone. It took support and this week, we witnessed over 20% rally (from last week) in the asset by making a new all time high of $ 0.882. Although it made a new all time high, BAT failed to close above the resistance level of $ 0.84, so we saw some profit booking. $0.695 and $0.66 levels will act as key support zones.

For BAT to further rally, it would have to break the crucial resistance level of  $0.84, needs to close and sustain above that.

USDT-INR Technical Analysis and Chart: 

At the time of writing, USDT-INR  is trading around $74.30 reflecting a gain of about 1% approximately over the period of 24-hours.

The pair is operating with ~4.5% premium, compared to its traditional counterpart. This is lower than what the Indian marketplace is used to seeing. After Bitcoin and Ether saw a small correction towards the end of last week, traders started liquidating their stable coins in exchange for these assets. This is most likely the reason for the wash of premiums from approximately 7% last week. In addition to that, there is still some uncertainty in the minds of crypto investors and traders with respect to how regulation and control in India will be established. USDT-INR is trading in a range-bound fashion, between $73.50-$77.50. We can see USDT is taking support at $73.60 levels, and resistance at a level of $77.5. 

The overall sentiment in the crypto space is positive, and continues to grow, leading to the appreciation in the USDT-INR pair, and resorting to $75+ levels this week. At such levels, we believe USDT being a stable coin is an easy way to gain exposure to USD. As India’s economy and business climate continue to develop and grow, trading the USD/INR pair has become an attractive investment opportunity for forex traders, which is likely to have a direct impact on the USDT-INR moving forward, as more arbitrage opportunities might surface. More importantly, as the overall sentiment with respect to Indian regulations in this space seems to be moving in the right direction, institutional and retail confidence has been coming back and will only improve here on. Hence, we maintain a bullish stance on the pair.

Weekly Trade Summary Sheet: 

Weekly Price Analysis:

USD ($)04 Mar 2111 Mar 21Previous WeekCurrent Week
CloseClose% ChangeHighLowHighLow

Weekly Volume Analysis:

Cryptocurrency1w – % Vol. Change (Global)
BitCoin (BTC)-48.01%
Ethereum (ETH)-0.23%
Basic Attention Token (BAT)-22.03%

Weekly Price Pointers:

Resistance 2$62,542$1,982$0.980
Resistance 1$58,367$1,878$0.840
Support 1$46,638$1,666$0.695
Support 2$43,016$1,579$0.606

*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.

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