Weekly Research and Market Strategy – 29 June 2020
June 29, 2020
Over the past week, there was a sale effort in many coins, causing the index to fall below the upper zone. Once the index was below the zone, there seemed to be an effort to push back. We might consider this as not a real fall out, and thus might constitute a good signal to shop interesting coins.
Total Crypto Market Cap Ex-BTC
Same as Crypto Market Cap, there was the same selling effort that caused the index to fall below the zone, and there was the same pushing back. We believed the concern about the pandemic, bad economic outlook, and increasing in bad debt contributed to the outflowing of risky assets around the world, including Crypto Market
Crypto Top 10 Market Cap
Technical Signal Trading
Bitcoin over the past week had some selling effort. Many investors might be concerned that the bullish period might come to an end, and bitcoin will start to fall. If we look at the trend line in white, we could see the price fall below the trend line. In technical analysis, this falling out might consider a sell signal, but we might not confirm the negative sign until it falls out of the zone.
ETH is considered strong compared to BTC, given that BTC price fell below the trend line 2 weeks ago , ETH just fell 3 days ago. In our opinion, this is not a negative sign to leave ETH. Those who bought ETH at a very low price might gradually sell to make some profit. If the price falls out of the current zone to the lower one, that scenario would show a true negative sign.
After having moved sideways for 2 months, XRP failed out of the zone in the past 3 days, and again we saw some uplifting force to get back to the zone. From technical perspectives, we may outline 2 strategies:
- If the price fakes falling and gets back to the zone, this constitutes a positive signal and we might consider buying to sell at the resistance
- If the price falls out of the zone, we may gradually sell to reduce exposure
LTC still moved sideways, as it has been for some period. The longer it moves sideways, the more momentum it stores. We believe once it has a clear trend or direction, there will be a big movement. The problem is we cannot predict the direction, either upward or downward, and thus we would encourage to keep your eyes closely on it so that you don’t miss an opportunity.
Bitcoin Cash Strategy
BCH in the past 3 days faced with a selling effort that caused the price to fall below the triangle pattern. Other indicators such as RSI and ADI show a bearish signal. Short-term investors we suggest gradually sell to reduce risk exposure. We also want to keep our eyes on whether the price will uplift back to the pattern, and therefore we will have to modify the outlook again.