08 October 2021 | ZebPay Trade-Desk
After witnessing a sharp correction over the past 2 weeks, one that threatened to pull Bitcoin (BTC) and altcoin prices to new lows this year, markets seem to have started to rebound. This is the first rally after the China crackdown and the Evergrande fiasco. This instilled a sense of confidence, and relief among investors, which then led to BTC, several altcoins, and global markets rebound. Altcoins too, witnessed a strong recovery, with many coins posting a 5% or more gain over a 24hr period at the time of writing.
Bitcoin (BTC) Technical Analysis and Chart:
At the time of writing, Bitcoin is trading around $53,800 reflecting a loss of about 2.25% approximately over the period of 24-hours.
Bitcoin on 6 Oct. witnessed a significant rally, as it crossed the $55,000 mark, and regained the $1 trillion market capitalization feat. BTC beat the rather stiff psychological resistance of $53,000 convincingly and hit a high of $55,569. In so doing, BTC almost entirely removed any trace of the impact China’s ban on mining had on prices in May and became a trillion-dollar asset class again. This rally has sparked enthusiasm and confidence among market participants, with longer-term BTC price projections being largely bullish in nature.
Bitcoin post correcting almost by 25% from $52,944 to $39,600 made a ‘Bullish Engulfing pattern’ and started consolidating. The asset took multiple support around 40,500 and was not able to break the $40k mark on the downside, the bulls grabbed the opportunity with both hands and the prices surged almost by 40% making the high of $55,300. BTC gave a breakout with good volumes above the crucial level of $53,000 (previous high from where it witnessed sharp correction) and is currently consolidating around $54,000. If the bulls manage to hold the support of $53k then we may expect the asset to further rally up to the $60k mark.
Ethereum (ETH) Technical Analysis and Chart:
At the time of writing, Ether is trading around $3,573 reflecting a gain of about 1.50% approximately over the period of 24-hours.
ETH has been a slight beneficiary of the BTC rally that has taken place yesterday, up 2% over the past 24 hours. Over the last week, the asset has seen good inflows, which have contributed to linear growth, as the asset hovers around the $3,500 mark, up 20% over the past week. ETH beat its 50-day SMA ($3,317) on Oct. 4 post which the bulls extended the recovery. However, the bears kicked in to stop the rally on Oct. 6 and they pulled the price to the 50-day SMA. Since then a similar pattern has been in play, hence the battle between the two continues, and ETH faces strong psychological resistance at $3,650.
ETH post correcting 34% from the $4k mark made a ‘Bullish Engulfing Pattern’ at the low of $2,656.4 and started consolidating and showed signs of recovery. The asset took multiple support at $2,750 and was not able to break the 100day simple moving average on the downside. The bulls took the charge and the asset started to make ‘Higher High Higher Low’ formation and gave a breakout above the descending trendline. ETH has a strong resistance at $3,675 (last time it corrected from this level). Once the resistance is broken with good volumes then we can expect the asset to further rally up to $4k mark.
Binance Coin (BNB)Technical Analysis and Chart:
At the time of writing, BNB is trading around $434 reflecting a gain of about 0.05% approximately over the period of 24-hours.
Binance Coin (BNB) is the native token of the world’s largest exchange Binance. BNB at the time of writing has a market capitalization of $75bn and is the 3rd largest asset. Over the past week or so, BNB has been riding an upward trend, up by ~20%. Volumes too, have held up well, and have seen a boost over the past 2 weeks, as at current levels, the asset looks rather attractive. BNB currently trades at $445.
BNB made a ‘Double Top’ or ‘M’ pattern with the neckline of $448 and witnessed a sharp fall to $336. The asset took support at the crucial level of $340 and bounced back up forming the ‘Higher Top Higher Bottom’ pattern. BNB surged almost by 36% and made the weekly high of $450. Currently, the asset is facing stiff resistance and consolidating exactly at the neckline of $448. To further rally BNB needs to break and close above the resistance with good volumes.
USDT-INR Technical Analysis and Chart:
At the time of writing, USDT-INR is trading around $76.99 reflecting a loss of about 0.21% approximately over the period of 24-hours.
The pair is operating with a ~6% premium, compared to its traditional counterpart. This is in line with what the Indian market traditionally witnesses. Crypto markets have been in the green most of this week, after the market fell by 20% or so, before recovering impressively. This is probably the reason why we have seen USDT/INR pair premiums higher at first, as markets dipped significantly. Then to participate in the uptrend, traders and investors buy-in, demand for the assets rise, in exchange for USDT, which in turn tends to wash out premiums. The pair has been in a downtrend and has corrected almost by 4.95% from 80.5 to 76.5. Post this move, the USDT is consolidating and trading in a range from 76.5 to 77.5
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 $76 and $78. However, given the volatility of crypto markets, over the past few weeks, we remain cautious on what might be next for the pair.
Weekly Trade Summary Sheet:
Weekly Price Analysis:
|USD ($)||30 Sept 2021||07 Oct 21||Previous Week||Current Week|
Weekly Volume Analysis:
|Cryptocurrency||1w – % Vol. Change (Global)|
|Binance Coin (BNB)||0.86%|
Weekly Price Pointers:
- The Bank of Russia also wants to slow down transactions to crypto exchanges to prevent “emotional” crypto purchases.
- New Zealand-based crypto exchange Easy Crypto has raised $11.75 million (NZD $17 million) in Series A funding, as the firm eyes a potential initial public offering (IPO) in the future.
- Financial services company MoneyGram International has partnered with the Stellar Development Foundation to enable consumers to send money using Circle’s popular stablecoin, USD Coin (USDC), and convert directly to and from fiat.
- Brazil is going to consider the Bitcoin bill that will be presented in the Brazilian Congress, Plenary of the Chamber of Deputies this week.
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 the Author is for informational purposes only and should not be treated as investment advice.