Crypto Market Strategy & Weekly Research – 1 Feb 2021

Posted on February 01, 2021 in Articles, Market Movements
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Total Crypto Market Capitalization

Crypto Market Capitalization Chart

The overall performance of the digital assets market over the past week has remained as volatile as usual. Just as we had previously predicted, the movement of capital from risky assets to secure assets (Risk-off) including gold, stocks, digital assets has shifted back all week. From the technical point of view, we can see that the top and bottom channels are still far apart. This is an indication that volatility remains high. However, we believe that in the coming weeks, it will begin to decline to form a clearer path.

Crypto Compare

Crypto Compare Chart

Technical Signal Trading

Technical Signal Trading Table

Bitcoin Strategy

Bitcoin Strategy

Despite the news that many big funds continue to buy into BTC, the price performance is reversed with such good news. From a technical point of view, the price broke through the upper trend line and dropped down to tease the lower frame. However, it has not passed through the resistance zone from the trendline and the upper zone. This causes the selling pressure to immediately push down the price. The price may continue to fluctuate for a while – what we need to be aware of is the support level (as circled). 

Ethereum Strategy

Ethereum Strategy

ETH hit a new all time high as it teases it 3 times. This is not a good sign in the short-run, particularly with the momentum divergence from RSI indicator. Those that are interested in ETH should be cautious and look into the support and resistance level before making the decision to trade. From the zone we drew to help us with the decision making from the first resistance area of 1,050 which is at the bottom of the zone.

Ripple Strategy

Ripple Strategy

XRP has shown the most outstanding performance with over 60% increase within the past 7 days. This movement is in contrast with the rest of the coins. XRP attempted to make the new average cost at the bottom of the zone. We can see that once the volatility is low enough, the price plummeted through the resistance level. Despite the slight error, there was a profit-taking force which formed a long candlestick. From here on out, it is important to consider the support and resistance level for decision-making.

Litecoin Strategy

Litecoin Strategy

Looking at the zone for LTC, we can see an obvious price decrease of over 30% to its lower zone from its peak. This can be interpreted as the downtrend for LTC which indicates that there is a potential for price decrease than increase. Investors who are interested in this coin should be patient and wait for a direction to return. Those who enjoy buying at a lower price should be extra cautious!

Gold Strategy

Gold Strategy

Gold continues to fluctuate within the zone. However, if you look at the ADX indicator, we can see that the fluctuations started to decrease as it is below 20. A triangle can be drawn, disregarding some errors. It is clear that gold is moving close enough to the decision-making point – will gold continue to move in the same path, or will it move it the reverse direction? We must actively follow-up on the price to be fully prepared for any changes in price.

Strategy from ZIPMEX

Strategy from ZIPMEX

Please use your own judgement when investing.

Any analyses from Zipmex is not to be used as investment advice
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