Jul 225 mins read

Madman's Market Analysis

Insightful evaluation of the A-share and cryptocurrency markets

Madman's Market Analysis

A-share Market Image: A-share market in China (Source: Finance Sina)

Today, Madman went to explore the A-share market and found that some sectors, such as the 5G industry related to national strategy and gold, had been performing well. However, many other indices had reached or hit new lows. This reminded Madman of the current state of the cryptocurrency market, where many small coins lack liquidity.

To compare, Madman looked at the transaction volume of the A-share market, which surprised him. The lowest daily transaction volume was less than 1 million, while many stocks with transaction volumes of several million had a market value of tens or even hundreds of billions. The total market value of A-share market is nearly 10 trillion, while the total market value of the cryptocurrency market is only 900 billion.

Bitcoin Chart Image: Bitcoin chart (Source: CoinMarketCap)

Some large cryptocurrency exchanges and mining companies may have valuations exceeding that of the cryptocurrency market as a whole. This raises the question of whether the A-share market or the cryptocurrency market is a bubble.

Madman believes that, compared to the A-share market, the valuation of digital currencies is currently lower. However, many people say that digital currencies cannot be valued because they do not make profits. This is true, so most worthless coins will die out in 2019. This will leave the creators of the great future bubble. Madman therefore advises people to focus on mainstream coins that are still active.

Market Analysis


The oscillating pattern of Bitcoin remains unchanged, but it saw a small increase in value yesterday thanks to Ether. Therefore, Bitcoin's trend over the next few days is likely to be driven primarily by Ether. Looking at the daily trend of Bitcoin, it tried to break through the 3880 resistance level but failed and fell back, suffering a range of oscillations between 3680-3880. Because trading volume has not effectively increased and is lower than the previous high point, the probability of choosing a direction in the short term is small. Madman expects Bitcoin will continue to oscillate within this range.

Ether Chart Image: Ether chart (Source: CoinMarketCap)


Recently, there has been a lot of news about Ethereum that people are concerned about. Key points include the Constantinople upgrade which will reduce mining rewards and a hard fork that will result in holders receiving ETCV. There is also an airdrop for ETN, but it's unlikely to have much significance. Despite these positive developments, Ethereum's price has not yet broken through previous highs due to selling pressure from project teams and exchanges. The likelihood of a short-term correction is high, so it's recommended to wait for a pullback before buying in.

Ethereum logo


There is still low volume, and the price movements are largely influenced by coins moving together in the market.

XRP logo


Similarly, there is also low volume, and a short-term continued fluctuation can be expected.

BCH logo


Waiting for an opportunity to present itself.

LTC logo


The trend is relatively strong, so it's recommended to hold the coin, though direct breakthroughs are unlikely.

EOS logo


Overall, this coin is stronger than most mainstream coins, and it's recommended to continue holding.

TRX logo

In general, the market has not experienced significant selling pressure, indicating that the market still recognizes the current position. For now, it's best to focus on range trading and high selling and low buying strategies. Don't chase after small coins that have a high likelihood of experiencing a quick correction.

My Personal Opinion on Cryptocurrency Investment

Disclaimer: The following article represents only my personal opinions and views on cryptocurrency investment. It does not represent the objective viewpoint and position of the Block. All content and views are for reference only and do not constitute investment advice. Investors should make their own decisions and trades, and both the author and the Block will not be held responsible for any direct or indirect losses incurred by investors.

I have been investing in cryptocurrencies for several years now, and my experience has taught me a few things that I would like to share with fellow investors.

First and foremost, it is essential to understand the technology behind the cryptocurrency you're investing in. Blockchain technology is the backbone of most cryptocurrencies, and it is crucial to have a basic understanding of how it works. Educating myself on the technology helped me gain confidence in my investment decisions, and it made me more comfortable in holding onto my positions even when the market was down.

Secondly, I recommend diversifying your cryptocurrency portfolio. As with any investment, diversification is key to minimize risks. While Bitcoin is the most well-known cryptocurrency, it is not the only one worth investing in. I recommend exploring other cryptocurrencies that might have a unique value proposition or solve different problems than Bitcoin.

Lastly, I suggest keeping a long-term perspective when investing in cryptocurrencies. Cryptocurrency prices are incredibly volatile, and it is not uncommon for prices to fluctuate by a significant margin in a short amount of time. However, I believe that cryptocurrencies have tremendous potential for long-term growth. Therefore, it is essential to have a long-term perspective and resist the urge to sell when the market is down.

cryptocurrency market chart (Image source: Blockchain Center)

In conclusion, investing in cryptocurrencies can be a potentially lucrative market, but it is not without risks. It is essential to conduct proper research, diversify your portfolio, and maintain a long-term perspective. With these strategies, investors can mitigate risks and potentially reap rewards in the long run.

diversification (Image source: Insurance and Estates)