26 Nov 2021 | ZebPay Trade-Desk
The week in crypto has been an interesting one. On the global front, most assets have been fairly range-bound, and at the time of writing the overall market capitalization of the industry stands at $2.64T. In India however, we saw markets crash, discounting close to 20% on Wednesday in the wake of rumours of unfavorable news with respect to crypto regulation coming in, but since then the market has recovered. Alt’s have shown some promising growth over the past 2-3 days, with the likes of BNB and BAT witnessing great strides upwards.
Bitcoin (BTC) Technical Analysis and Chart:
At the time of writing, Bitcoin is trading around $57835 reflecting a gain of about 0.85% approximately over the period of 24-hours.
BTC has seen a significant correction, over the past 15 days, falling by over $13k from its ATH of $69k on Nov. 10 to lows of $56K very recently. Surprisingly, however, this hasn’t deterred the community, as inflows continue to be strong, and volumes have held fort. Moreover, the overall sentiment hasn’t turned bearish entirely either. The biggest signal of that is the 19% drop down to $56,000 marked a local bottom, and even despite that no significant liquidation took place. Moreover, margin traders continue to remain long, which is a bullish sign as well.
Bitcoin after correcting almost by 20% from its peak is currently consolidating and trading in a range between $56,000 to $60,000. The asset is forming a ‘Descending Triangle’ pattern on a daily time frame and is struggling to break $60k on the upside. BTC has a strong support zone from $53,000 to $55,000 and we expect that the prices can bounce from these support levels. A break or close below these levels can lead to further downfall. To further rally, the asset needs to trade and close above the resistance zone of $60,000 to $62,000.
Ethereum (ETH) Technical Analysis and Chart:
At the time of writing, Ether is trading around $4,415 reflecting a gain of about 2.75% approximately over the period of 24-hours.
As ETH moves closer to the new proof-of-stake (PoS-) powered chain (ETH 2.0), the recent updates to its blockchain are making Ether (ETH) deflationary in nature. The upgrades have caused a deflationary issuance of ETH, where the burning of a portion of transaction fees has surpassed the issuance of new ETH through mining. This is an important factor that is likely to drive the value of the asset upward in the months and years to come after ETH 2.0 is fully operational.
ETH had been trading in an uptrend for the past three months and it made an all-time high of $4,868. However, the bulls were unable to push the prices above the psychological level of $5,000 as the asset faced stiff resistance at the top and witnessed a sharp correction. The price broke the uptrend line and the 20 Day Moving Average and fell almost by 18% making the low of $3,958. . Technically, on a daily time frame, ETH is making a ‘Symmetrical Triangle’ pattern with declining volumes. Hence, Breakouts on either side will further decide the trend for the asset.
Basic Attention Token (BAT)Technical Analysis and Chart
At the time of writing, BAT is trading around $1.71 reflecting a gain of about 40% approximately over the period of 24-hours.
BAT has been on a spree, rising over 60% over the past 24hrs. The asset hit its new all-time high of $1.80 today, making it the 67th largest asset by market capitalization which at the time of writing stands at $2.65bn. It has a circulating supply of 1,492,503,789 BAT coins and a max. supply of 1,500,000,000 BAT coins. Much of BAT’s appreciation started following a partnership between Brave Browser and Solana. The two companies will collaborate to bring wallet features for the Solana blockchain into Brave’s Web2 desktop and mobile browsers.
BAT after consolidating between $0.6 to $0.75 gave a massive breakout and made the high of $1.46. The asset faced stiff resistance around $1.5 and corrected 34% from its recent top and again started consolidating. BAT gave a breakout above the range but was unable to breach the resistance of $1.5 on the second attempt and witnessed profit booking at higher levels. Post this move, the asset was trading in a range between $1 to $1.15. However, it finally gave a breakout on the upper side with good volumes and skyrocketed to the new all-time high of $1.86. The prices have surged almost by 67% within two days. BAT can face resistance at the psychological level of $2 whereas $1.6 and 1.45 can act as strong support for the asset.
USDT-INR Technical Analysis and Chart:
At the time of writing, USDT-INR is trading around $77.35 reflecting a gain of about 2% approximately over the period of 24-hours.
The pair is operating with a premium of only 3% or so, which is typically lesser than what the Indian market witnesses. However, this has happened for good reason. Earlier this week, rumours circulating with respect to regulation in India in the market created panic amongst traders. The pair fell from 80.50 levels to lows of 64 levels. This was more than a 20% fall overnight. Since then, the tide has turned, as the panic has settled and the market has recovered significantly. USDT-INR currently trades at $77.50 levels. USDT-INR after resisting multiple times at 80 witnessed a sharp correction and the pair fell to 70. The pair made a ‘Tweezer Bottom’ pattern at 70 and started moving upwards.
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 $75 and $78.5 However, given the volatility of crypto markets, over the past few weeks, we remain cautious on what might be next for the pair.
Weekly Trade Summary Sheet:
Weekly Price Analysis:
|USD ($)||18 Nov 21||25 Nov 21||Previous Week||Current Week|
Weekly Volume Analysis:
|Cryptocurrency||1w – % Vol. Change (Global)|
|Basic Attention Token (BAT)||23.47%|
Weekly Price Pointers:
- Customers will be able to purchase movie tickets and concessions with crypto at over 500 Regal cinemas.
- The U.S. city of Williston in North Dakota is installing a cryptocurrency ATM at its international airport.
- U.S. Senator Sherrod Brown has sent letters to cryptocurrency exchanges and stablecoin issuers, including Coinbase, Gemini, Binance, and Tether, asking how they are protecting consumers and investors.
- The Indian government this week announced it would introduce the Cryptocurrency and Regulation of Official Digital Currency Bill 2021 when it convenes at the Winter Session on Monday.
- During the first week of November, the popular NFT marketplace Opensea surpassed $10 billion in all-time sales.
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.