09 Sept 2021 | ZebPay Trade-Desk
Bitcoin (BTC) has witnessed a major correction this week, falling from $52,000 to $43,000 levels, before correcting slightly and trading at $46,000 now. ETH too witnessed something similar, as it fell from highs of $4,000 to $3,100 levels, before recovering and currently trades at $ 3,475.
The fall seems to have happened due to a mass sell-off that was seen in the marketplace, and some deflationary comments released by the IMF, which set off a panic amongst holders. Altcoins have followed a similar path, and most major altcoins are in the red this week.
Bitcoin (BTC) Technical Analysis and Chart:
At the time of writing, Bitcoin is trading around $45,851 reflecting a loss of about 1.57% approximately over the period of 24-hours.
BTC had a rather volatile evening yesterday. The asset saw a correction of about 20%, falling from $52,000 to $42,800. Since then, however, it has seen a recovery and currently trades at $47,100 at the time of writing. The reason for this crash is likely to be that a mass selling, roughly close to $3.5bn took place, as holders liquidated their BTC assets. Since then though, many have spotted an opportunity to build new positions, driving the asset back up to $46,000 levels.
BTC, last week was consolidating and was trading sideways in a range from $47,000 to $50,000. This week the asset gave a breakout on the upside and the prices rallied up to $52,944, however, BTC faced resistance and the prices couldn’t sustain at higher levels for long and witnessed a sharp correction.
Technically, on a four-hour time frame, the asset made an ‘Evening Star’ pattern (Trend Reversal Pattern) and the prices fell almost by 20% and made the low of $42,830. BTC has very strong support at $46,500 and $42,500. If the prices hold and sustain above these levels then we could expect the bulls to resume the up move.
Ethereum (ETH) Technical Analysis and Chart:
At the time of writing, Ether is trading around $3,465 reflecting a gain of about 0.75% approximately over the period of 24-hours.
ETH has witnessed a significant correction, as it fell from highs of $4,000 to $3,100 levels, before recovering and currently trades at $ 3,475. During the fall, a good amount of profit booking was seen, trading a further trade sell-off. Since then, however, we have seen investors buying in at lower levels, as the asset does look attractive. The asset is likely to be range-bound through the rest of the week.
ETH was consolidating and trading sideways in a range from $3,000 to $3,350 for the past three weeks. The asset finally gave a breakout on the upside and made a high of $4,027. However, the prices were struggling to breach and sustain above the $4k mark convincingly.
After resisting multiple times, ETH witnessed a sharp correction and fell almost by 24%, and made a low of $3,026. ETH has very strong support at $3,000. The lower longer shadow indicates buying at these levels. If the prices hold and sustain above the support level then we could expect the bulls to resume the up move.
DogeCoin (DOGE) Technical Analysis and Chart:
At the time of writing, DOGE is trading around $0.2526 reflecting a loss of about 0.5% approximately over the period of 24-hours.
Dogecoin (DOGE) is based on the popular internet meme “doge” and has the Shiba Inu symbol in its logo. Dogecoin started off with a supply cap of 100 billion coins, which is far more than mainstream cryptocurrencies. By mid-2015, the 100 billionth Dogecoin was mined, after which another 5 billion coins were circulated annually. There is no theoretical supply limit. Doge is the oldest meme coin with a market capitalization of around $33 Billion.
Doge witnessed a massive rally from $0.1599 to $0.3517 surging almost by 120%. Post this move, the asset faced some stiff resistance at higher levels and corrected almost by 40%. Doge has a very strong support zone from $0.200 to $0.230 ( 78.6% & 61.8% Fibonacci Retracement Level). The longer Lower shadow at these levels indicates buying and we can expect some rally if the prices sustain the support levels.
USDT-INR Technical Analysis and Chart:
At the time of writing, USDT-INR is trading around $78.63 reflecting a loss of about 0.5% approximately over the period of 24-hours.
The pair is operating with a ~9% premium, compared to its traditional counterpart. This is higher than what the Indian market traditionally witnesses. Crypto markets have been in the red most of this week after the market fell by 20% or so, and this is probably the reason why we have seen USDT/INR pair premiums shoot up.
In addition, we have seen a slight appreciation of INR against USD. Typically, when prices start to fall, people liquidate their assets to book profits, which causes the premiums to move upwards. However, as assets look more attractive at these levels, traders might buy-in, which might reverse this trend. The pair has been in an uptrend this week and has rallied almost by 7.25% from 75 to 80.5. We can see USDT facing resistance at 80 as the upper longer shadow indicates selling at these levels.
The overall sentiment in the crypto space remains positive, but at the same time, investors remain cautious. We expect USDT/INR to be range-bound, most likely between $79 and $77 However, given the volatility of crypto markets, over the past few weeks, we remain cautious on what might be next for the pair.
Weekly Trade Summary Sheet:
Weekly Price Analysis:
|USD ($)||01 Sept 21||08 Sept 21||Previous Week||Current Week|
Weekly Volume Analysis:
|Cryptocurrency||1w – % Vol. Change (Global)|
Weekly Price Pointers:
- Chinese mining hardware giant Bitmain will be bringing 56,000 of its latest Antminers to the southeastern U.S. state of Georgia.
- Speaking on a panel as part of the senate inquiry into “Australia as a Technology and Financial Centre” three crypto firms outlined their de-banking experience in Australia.
- On the day El Salvador implemented the bitcoin tender law, the official government wallet called the Chivo wallet had some initial issues for five hours on Tuesday.
- The U.S. Securities and Exchange Commission (SEC) has threatened to sue the Nasdaq-listed cryptocurrency exchange Coinbase over its lending product.
- A former deputy governor of the RBI sees cryptocurrencies as a taxable asset or commodity.
*Sources of charts: https://cryptowat.ch, https://pro.zebpay.com/trade/USDT-INR
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