Weekly Research and Market Strategy – 31 Aug 2020

August 31, 2020

Total Crypto Market Capitalization

In the past week, the total crypto market capitalization was stable and rose up eventually. However, it couldn’t go beyond the resistance trendline. The movement was mainly defined by ETH. Defi projects recently played a bigger role in the digital assets market but they didn’t affect the market capitalization much.

Crypto Compare

Crypto Top 10 Market Cap

Technical Signal Trading

Bitcoin Strategy

In the past week, Bitcoin didn’t move much from where it was. The price went down to the lower resistance line then went back up immediately (the white circle). It’s uncertain whether it will pass the redline. The strategy now is to wait for the price to go beyond the upper resistance line and “Follow buy”.

Ethereum Strategy

ETH has stayed at the new baseline for two weeks. It fluctuated within the zone. If you follow our weekly research, you could have bought it at the lower resistance line we showed. Then, you can sell it on the upper resistance line because gradually buying and selling is a good tip for portfolio management.

Ripple Strategy

XRP finally dropped below the resistance line. It’s now at the middle of the lower zone, trying to go beyond the upper resistance line. This pattern looks like “Wave 4”. If it went beyond the upper resistance line, it would be a very good sign.

Litecoin Strategy

LTC dropped down to the lower zone then bounced back immediately, the pattern was similar to other crypto currencies. This pattern showed a positive sign for investors because the “Stop Loss” is low while “Reward to Risk Ratio” is as high as 2.5x so it’s a good investment. 

Bitcoin Cash Strategy

We mentioned in the previous weekly research that investors should wait and see whether the price would get through the lower resistance line. When the price dropped to the resistance line, the coin was immediately bought, pushing the price up again. The range of the zone is around 20%, which means investors seeking the target price at the lower resistance line could make a profit around 15% (because no one can perfectly get in right on that point). Investors should also consider “Stop loss” just in case.