Weekly Research and Market Strategy 6 July 2020
Over the week the Total Crypto Market Capitalization looked stabilized and boring, but we positively believe that this price action should be closely monitor. In the previous week, we included in the weekly research that if the price fakes falling – falling to new low and rebound back – it is a positive signal. We still maintain the same belief and let’s analyze which coins are interesting this week.
Crypto Top 10 Market Cap
Technical Signal Trading
Bitcoin over the week has been interesting. Some textbook calls this price formation as “price consolidation” or “bridge”. The narrow movement indicates that there is a formation of the average cost of capital around at a price. Therefore, if we see the price increase the average cost, such point is a buy signal. According to our analysis, the average cost is the dotted green line around 9,282, and we should consider buy signal if the price increase above that number.
ETH has moved similarly to BTC, but the difference is that ETH price has broken out the average cost of capital. This constitutes a very positive signal. Investors should also take other fundamentals into consideration before buying because this graph is merely a technical analysis, not fundamental.
According to last week research, we discussed 2 following scenario
1. If the price fakes falling and rebounds back, it’s a positive signal. We should consider buying to make a profit at the resistance
2. If the falling is real, we might consider selling some XRP to reduce exposure
We still believe that the 1st scenario is a very positive, and thus investors should consider buying
LTC moved similarly to BTC and ETH, which is forming the average cost of capital at the dotted green line. We should keep monitoring this change to not miss an investment opportunity.
Bitcoin Cash Strategy
BCH has witnessed a strong sale effort that made it broke the triangle price pattern. Furthermore, the indicator RSI is getting weaker and ADI shows a bearish condition. We recommend monitoring whether the price rebounds back to the boundary. If it succeeds, this falling is a fake and thus constitutes a buy signal.