Total Crypto Market Capitalization
During the last week there have been price adjustments for almost every coin causing many investors to panic. Whoever buys during this period may experience a drastic change in their portfolio, especially with the portfolio being moved 10-20% per day. Other markets such as gold had shown similar results. This might be due to the fact that fund flow has started to take a profit after the long profit run after the first wave of COVID-19.
Technical Signal Trading
After the BTC price hit a resistance of around US$ 42,000, the Fibonacci level, the price immediately dropped to the significant Fibonacci number at 261.8, or around US$ 32,000 and sharply rose up!
We believe the price will fluctuate for a while before it forms itself to create the price pattern. As for the short term traders, it may get a little crazy during this time period. Please be careful!
As the price of ETH hits the Fibonacci resistance we had drawn, the price plummeted. The resistance has significant numbers of 261.8 where the price of ETH comes down in that area and immediately increases. Those that bid in that area are very lucky!
We are set to look at ETH to behave similarly to BTC. The price will fluctuate and price patterns. We can wait for the end of the pattern first before we proceed with the action.
XRP has the potential to drop off to a new low. It is clear that the performance of XRP is on a downtrend. Those that buy in at this point must be extra cautious! It is much easier to trade any asset on the uptrend as the price has an opportunity to go up rather than down with higher potential to gain more profit than loss. However, in the downtrend, the price has a higher chance of falling rather than increasing with higher potential to make a loss more than profit.
There is a price adjustment in the for LTC along with other coins. Fluctuations error can be seen around 110 LTC/USD from the resistance at the Fibonacci number at a significant level of 100% or +/- 130. However, we can see that there is a big fall for a moment and rise back up in a short amount of time. This may not be worth it for the day traders as you may lose more than you gain. LTC has the potential to perform like BTC and ETH just before the price patterns start to form before we can decide whether or not there will not be a reversal or a continuation pattern.
Gold is starting to rise following on from the highest point which mostly performs towards a reversal pattern more than the continuation pattern. With the price performance of reaching a new low or or the price has left the zone of around 1,760 will not be so good for gold. There is a lot of money in the system right now as many countries have decided to implement QE. Will this cause the funds to flow into gold? Only time will tell.
Strategy from ZIPMEX
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.