Weekly Research and Market Strategy – 8 June 2020
June 08, 2020
Overall outlook in the past week seems improving because bitcoin and altcoins show technically positive signal by breaking many significant resistances.
In general, Total Crypto Market Cap shows the overall status of all digital assets. It resembles the index for the stock markets (such as NASDAQ, S&P500, SET100, SET50, etc). At the moment, Total Crypto Market Cap is more widely accepted than Volume Profile – which tells Support & Resistance and overall cost of capital of investors. From technical perspectives, the fact that current price could stabilize its level shows a long-term promising.
Market Capitalization – Excluding BTC
Total Crypto Market Cap Ex-BTC is a market outlook that removes bitcoin effects to see the pure movement of altcoins. After the US FED announced unlimited QE (Quantitative Easing), assets around the world, including altcoins, show a V-shaped turnaround. The movement moved from the lowest for 4 zones (looking from the white box in the graph). Historically, the increase could only go up for 4 to 5 zones and would stabilize or turn around. In this case, because the index has slowly increased with a strong price foundation, we believe that the outlook will continue to be positive. Despite a chance of having RSI Momentum Divergence, a drop might not prolong because it does not show an over bought condition.
Selected Price Change
Bitcoin Technical Analysis
Although it broke through the resistance at $10,000, bitcoin continues to move within the zone. It could not stabilize above the zone at $10,000. This makes the price fluctuates within $8,700 – $10,000.
We recommend waiting until the price breakout the resistance at $10,000 and doing swing trade, rather than doing buy-and-hold. As the price moves up through several zones, it might not be safe for our cost of capital.
Ethereum Technical Analysis
After ETH hit the Zone’s boundary, there was a sale attempt to cash out. Investors who followed our last recommendation should already have made a profit at this point.
We recommend keeping eyes on price action within this zone after ETH has climbed up for 4 to 5 zones (see the lines in the graph). ETH price could either breakout the resistance or stabilize to cool down the market hotness. We advise short-term traders to be more cautious at the moment and should limit your risk exposure.
Ripple Technical Analysis
XRP price has been still moving so narrowly over the past week that we might not see improvement. Zipmex believes that XRP is in an accumulation phase, and thus not a bad signal overall. We still maintain our recommendation to accumulate buy at this zone and keep your eyes on a stop-loss point to limit risks.
Litecoin Technical Analysis
LTC has moved within a narrow range, as has XRP. We still maintain our recommendation to accumulate buy at this zone. For those who do not want to wait, another recommendation is to buy after the price breakout through the resistance.
In the sideways market condition, using indicators such as MACD, RSI, EMA, etc may not tell you insights because of the lagging nature of these indicators.
Therefore, we propose that the Price Action indicator would give a better signal, as it is more sensitive to the movement.
Bitcoin Cash Technical Analysis
BCH’s movement shows a pattern similar to those of XRP and LTC, moving in a narrow range. The difference is BCH shows a more positive sign because the price movement over the week has been getting narrower.
As the price range gets narrow, the difference between the stop-loss point and the cost of capital will also be narrow. Therefore, we recommend another tool Average True Range (ATR) that looks at volatility. When ATR is low (closer to the white dotted line), we could expect a big price movement soon after.
This report is not an offer or solicitation of an offer to buy or sell any cryptocurrencies, digital assets, security or derivative instrument, or to make any investment. Any opinion or estimate constitutes the preparer’s best judgment as of the date of preparation, and is subject to change without notice. Zipmex assumes no obligation to maintain or update this report based on subsequent information and events. Zipmex, and its respective officers, directors, and employees, may have long or short positions in, or may buy or sell any of the securities, derivative instruments or other investments mentioned or described herein, either as agent or as principal for their own account. This material is provided solely for informational purposes and is not tailored to any recipient, and is not based on, and does not take into account, the particular investment objectives, portfolio holdings, strategy, financial situation, or needs of any recipient. As such, any advice or recommendation in this report may not be suitable for a particular recipient. Zipmex assumes recipients of this report are capable of evaluating the information contained herein and of exercising independent judgment. A recipient of this report should not make any investment decision without first considering whether any advice or recommendation in this report is suitable for the recipient based on the recipient’s particular circumstances and, if appropriate or otherwise needed, seeking professional advice, including tax advice. Zipmex does not perform any suitability or other analysis to check whether an investment decision made by the recipient based on this report is consistent with a recipient’s investment objectives, portfolio holdings, strategy, financial situation, or needs