Weekly Research and Market Strategy 3 Aug 2020

Posted on August 04, 2020 in Articles, Investing, Market Movements
Weekly Research and Market Strategy 3 Aug 2020
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Total Crypto Market Capitalization

The digital assets market is still bullish. However, there are some concerns behind this rapid rise because:

  1. The price rose up by 5 zones in a short time
  2. The price is far from EMA Band (Average price line)
  3. RSI rose up to 90, which is the level of “Over Bought”

As a result, the price in the future can be more fluctuated. Investors need to be more cautious in investments.

Crypto Compare

Crypto Top 10 Market Cap

Technical Signal Trading

Bitcoin Strategy

In the past week, Bitcoin passed the upper resistance line, going above Zone 5. Shortly after that, many people sold it and the price went back to Zone 5. Investors should be more cautious after this as RSI is “Over Bought”, making price highly fluctuated.

Ethereum Strategy

In the past week, investors should be more cautious in buying ETH for 2 reasons.

  1. RSI is “Over Bought”
  2. It will be highly volatile.

It’s obvious that the price is highly fluctuated, which is a fluctuation of a few zones. If investors bought in at a wrong time, their portfolios could be damaged. After this, the price could fluctuate across zones (Zone Shift) for a while.

Ripple Strategy

The movement of XRP was similar to ETH. But the degree of movement is lower for XRP. In the past week, the price went up rapidly for 2 Zones, resulting in high volatility across Zones. New investors may fail to capture and lose some money. For those who’re following our research, we recommended to scale out at the resistance line in order to reduce volatility.

Litecoin Strategy

LTC rose up, getting above the upper resistance line. Even though it went back down (False Breakout), its volatility is still less than many cryptocurrencies possibly because it went up less than others. Since there are many factors contributing to the volatility, investors should also monitor external factors. 

Bitcoin Cash Strategy

The movement of BCH is similar to LTC. But the volatility of BCH is larger. You can see from the last red box in the graph that it volatiles across 2 zones. Day Trader may lose a significant amount if it swings like this. Investors should be more cautious at this time.