NEW DELHI: Major cryptocurrencies were trading with mild gains on Wednesday. Crypto traders turned cautious with a positive bias on digital tokens, after volatility for a couple of weeks. Eight out of top-10 digital tokens were trading higher at 9.30 hours IST, surging as much as 4 per cent.
Bitcoin is hanging tough amid a slew of negative headlines, extending its rally for the third day and lifting the spirit of battered bulls. The largest cryptocurrency has rallied above its average price over the past 20 days, a positive indication for advocates who were looking for the digital token to reclaim its upward momentum.
Star stock picker Cathie Wood’s ARK Invest is teaming up with 21Shares US LLC, which filed with the US Securities and Exchange Commission on Monday to create a bitcoin exchange traded fund (ETF), the latest fund manager attempting to cash in on investors’ growing interest in cryptocurrencies.
“The sentiment across the crypto board is strongly bullish. Investors are grabbing every opportunity to buy on dips. The rally was observed across the board as BTC, ETH, XRP, and other altcoins gained from a massive buying frenzy. Despite severe selling pressure recently, the correction has drawn investors’ attention,” said Edul Patel, CEO and co-founder, Mudrex.
TP ICAP is eyeing to launch a cryptocurrency trading platform with Fidelity Investments and Standard Chartered’s digital assets custody unit. TP ICAP is the world’s biggest interdealer broker. The platform will initially allow them to trade Bitcoin, with second-largest token Ether to be added later.
However, traders have turned cautious on buzzing cryptocurrencies which tanked up to 95 per cent recently, eroding almost all of investors’ wealth.
Tech View by ZebPay Trade Desk
Basic Attention Token (BAT), with a total market cap of over $830 million, has been fairly range-bound the past weeks trading between $0.5-$0.6. Volumes, however, have not been as volatile, and have held up well. BAT’s underlying asset is the Brave browser which has seen better mass adoption among both retailers and publishers over the past few months.
This coupled with the fact that BAT is still relatively undervalued given its utility, acquiring the asset at these levels seems to look like a highly attractive proposition for long-term investors. In addition, as the ERC-20 and DeFi space continue to grow, BAT is poised for success.
BAT was trading in a downtrend over a few weeks and last week it made a low of $0.425. The asset took the support at lower levels and showed signs of recovery. This week BAT has started moving upwards making ‘Higher Top Higher Bottom’ pattern surging almost by 45% from the recent low. BAT has an immediate resistance at 0.63 and once this is broken, we expect the asset to rally up to the next resistance level which is at 0.725.
Support: $0.485, $0.425
Resistance: $0.63, $0.725
Time is in UTC and the daily time frame is 12:00 AM – 12: 00 PM UTC.
(Views and recommendations given in this section are the analysts’ own and do not represent those of ETMarkets.com. Please consult your financial adviser before taking any position in the asset/s mentioned.)