Weekly Research and Market Strategy – 20 July 2020

July 21, 2020

Total Crypto Market Capitalization

The market of digital assets for this week still remains the same as the past week. So, we would like to present an overview of the market using the Weekly Chart. This will allow us to see the market in a big picture and plan our investment in the long-term.

The market volatiles in a narrow frame, which is around 30% of the range. The price is now consistently hitting the upper resistance line. We envision that it will eventually get through to the next zone.

Crypto Compare

Crypto Top 10 Market Cap

Technical Signal Trading

Bitcoin Strategy

In the past week, Bitcoin was still volatile but within a narrower frame. This could lead to a Fund Flow moving toward gold investment because the price of gold is consistently hitting a new high. Investors seeing this could be leaning more toward gold, this effect is also known as “Asset Rotation”.

The price of BTC was moving in this zone in the past 3 months. For those who’re holding BTC, if the price is still moving in this zone, we’d recommend to hold it and monitor situation. However, if the price rises above this zone, it’s recommended to consider selling.

Ethereum Strategy

ETH still couldn’t get through the resistance line, which is the upper line of this zone. The price moved back to the average original price. From my technical point of view, once the price hit the average original price, it’s a good “Buy Signal” for “Buy On Dip”. You should closely monitor it as the opportunity will come for investors who are ready.

Ripple Strategy

XRP’s movement is similar to ETH’s, which did not exceed the resistance line and move back to the average original price. Thus, the strategy should be similar to ETH. Investors should wait to buy at “Buy On Dip” because this strategy gives investors a narrow stop loss point. This leads to Reward to Risk Ratio(RR) being higher than “Buy On Breakout”. Noted that investors should be disciplined if the price doesn’t go as expected.

Litecoin Strategy

LTC has been volatile within this zone for more than 4 months, which is a long time frame. The strategy for this pattern is not to buy or sell. When the price is volatile narrow enough, it will eventually move to the new zone, which can be either upper or lower zone. Investors should keep an eye on the “Price Action”.

Bitcoin Cash Strategy

BCH’s movement is similar to LTC’s. The subtle difference is that BCH is moving around the lower border of the zone, which is a little worrisome. The strategy for BCH is that investors should closely monitor. Whenever the price drops below the zone, investors could consider reducing allocation of the asset.