Weekly Research and Market Strategy – 22 June 2020
June 23, 2020
Total Crypto Market Capitalization
Overall outlook this week is still moving sideways. We have seen the market is getting risk-off and lacks positive factors to drive up the price. A piece of evidence could be in investors in equity markets took profit and the gold price has increased. Such movement might be a result of concerns about 2nd wave of COVID-19, totaling 9 million cases.
Total Crypto Market Cap Ex-BTC
Total Crypto Market Cap Ex-BTC, as similar to Total Crypto Market Cap, has been moving sideways in a narrow zone. Day traders might not get excited about this market condition. However, we would encourage you to keep eyes on the price stability at the lower line of the zone, as the price might increase to the upper line.
Crypto Top 10 Market Cap
Technical Signal TradingBitcoin Strategy
This past week bitcoin, as well as altcoins, did not have significant movement. However, this is not a bad sign because of 2 reasons:
- The outlook is still positive because the price still moves within the zone
- Bitcoin outperformed other asset classes because they were mostly sold and changed their baseline
We would like to highlight that, generally, investors expect big price movements following a long duration of narrow sideways movements.
On June 22, ETH is considered the leader of the board. We have seen some momentum building for a while, and now it started to move up on the same day that the gold price set the 8-year new high record. We hope some of the funds will flow to digital assets. Based on our technical analysis, the fact that the price still maintains the upper zone and that the price tested with the trend line still increasing informed us that ETH has positive momentum.
XRP could maintain above Fibonacci 78.6, which is a significant level. If the price moved upward from this level, we believe XRP would be interesting to invest in. XEP would have a low risk (stop loss is not too deep) but a worthy reward. Generally, when Reward-to-risk ration is above 2, we interpret that the difference between a trade entry point to a sell or take-profit order is twice the difference between the entry point and stop-loss point. For example, you may enter at 20 and expect the price will reach 30 while setting a stop-loss point at 15.
LTC still moved within the narrow zone. The difference with other altcoins is that Litecoin move very little looking from both price change percentage or the number of zone change. We could interpret this little movement in two ways:
- LTC fundamental might not be interesting for investors
- Funds flowing into digital assets has not reached LTC yet
Bitcoin Cash Strategy
BCH has a very narrow movement, as we could see from the blue triangle. From technical perspective, we believe that the price would soon break the trend line, either going up or down. We encourage you to keep your eyes on BCH to consider buying once it breakouts the upper trend line. Again, please limit your loss to manage your portfolio risk.