Crypto Market Strategy – Weekly Research – 28 Dec 2020

Posted on December 28, 2020 in Articles, Investing, Market Movements
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Total Crypto Market Capitalization

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We have approached the end of the year 2020 which is clear that we have been through a lot during this whole time. Regardless of whether or not this year is good or bad, we would like all investors to take everything that happened as a lesson for the upcoming year, 2021. As for the overall digital asset market in the past week, its performance is still as vibrant as before. As there are no financial statements nor performance reports on digital assets, their volatility can impose significant degrees of fluctuation in the portfolio.

Crypto Compare

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Technical Signal Trading

Bitcoin Strategy

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BTC continues to hit new highs. All investors could have noticed that the price of BTC had risen sharply and that the slope of the degree was significantly increased as Standard Deviation (SD) went above the mean. Having said that, if you look at the momentum index like the RSI, you can see that it has weakened and formed momentum divergence. Thus, investors should be more cautious in their investment. Do not enjoy the profits too much that you forget about the risks!

Ethereum Strategy

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ETH is rising stronger and stronger and the steeper slope to build towards reaching a new high as the momentum decreases. Note that there is evidence of two momentum divergences. This is why investors should be more careful when investing in this period.

Ripple Strategy

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The US SEC has announced a lawsuit against Ripple, which leaves us with little room for comment. Regardless of which, it’s still good to follow to learn what the future for centralized digital assets like Ripple might be.  As for the price, XRP is clearly on a downtrend. It has broken every level: the resistance line, the support line. Those who see the price has dropped might take this as an opportunity to enter. But, be careful as investing in assets in a downtrend is definitely not for the faint-hearted.

Litecoin Strategy

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LTC is a digital asset that not many paid attention to. However, considering the turns from early 2020 to date, LTC has risen by more than 250% whilst BTC has risen by more than 300% over the same time period. The volatility of LTC prices rose significantly. Note that the standard deviation values are higher than the mean itself which can also cause your portfolio to fluctuate.

Gold Strategy

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After its standing above its mean, gold has increased to stand above various 20 EMAs and reached its new high. This is a positive sign for technical analysis. However, it is crucial that investors analyze investment risks as all investments carry some degree of risk.

Strategy from ZIPMEX

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Zipmex is not responsible for any investment decisions made based on the above analyses. All investors, please be aware that investments carry risks. Please use your own judgment in investing

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