Weekly Market Report – July 13, 2019

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The crypto market continues to evolve at a rapid pace, offering both volatility and opportunity for traders and investors alike. This report provides a comprehensive overview of the secondary market dynamics within the top 100 cryptocurrencies listed on CoinMarketCap, categorized by industry sectors—inspired by MyToken’s classification framework with minor custom adjustments. While no investment advice is offered, our analysis aims to deliver actionable insights tailored to informed decision-making in digital asset trading.

Market Overview

This week’s analysis focuses on the top 100 cryptocurrencies by market capitalization. The sector-based classification system helps identify trends across different blockchain applications, from decentralized finance to digital cash and exchange utility tokens. As our understanding of the crypto ecosystem deepens, so too will the refinement of these categories and their constituent assets.

New Entrants and Exits in the Top 100

The following tokens entered the top 100 rankings this week:

Tokens that exited the top 100 compared to last week:

These shifts reflect changing investor sentiment, project developments, and broader market movements. The turnover highlights the dynamic nature of the crypto space, where innovation and adoption can quickly elevate new players while others lose traction.

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Performance of Top 100 Cryptocurrencies by Sector

From June 11 to July 11, 2019, we analyzed the returns and volatility of top 100 cryptocurrencies grouped into 15 distinct industry sectors. This period captures critical momentum shifts as Bitcoin surged from $4,158 to over $10,800—a bullish trend that lifted many altcoins along with it.

Average Daily Return vs. Volatility

The relationship between average daily return and volatility reveals key risk-reward profiles across sectors. Some industries contain only one or two tokens, which may skew results due to limited sample size. Others, such as "Classic/Mainstream" (C) and "Exchange Platform Tokens" (E/T), include multiple major assets and offer more statistically robust patterns.

Abbreviations used:

Sectors with higher volatility often showed elevated returns during this bull phase, particularly gaming and speculative platforms. Meanwhile, digital cash and established mainline coins offered relatively stable growth with lower drawdowns.

Correlation Between Sector Returns

Analyzing return correlations between sectors from April 11 to July 11, 2019, provides insight into interdependencies across the market. Correlation values range from -1 (perfect inverse movement) to +1 (perfect alignment), with values near 0 indicating no linear relationship.

Notably:

Understanding these relationships helps traders build diversified portfolios and hedge against systemic shocks.

Focus Topic: The Art of Buying the Dip

Since April 2019, the cryptocurrency market has displayed clear bull market characteristics. Bitcoin’s price climbed from $4,158 on April 1 to $10,817 by July 1—an average monthly gain of 38%. Despite this upward trajectory, periodic corrections have presented strategic entry points for savvy investors.

What Is “Buying the Dip”?

"Buying the dip" refers to purchasing assets after a price decline, based on the expectation of recovery. A common challenge is determining when to enter—how deep must the drop be before acting?

To answer this, we analyzed Bitcoin’s historical pullbacks using daily closing prices from February to July 2019.

Key Findings:

Interestingly, when plotting frequency versus duration:

This suggests that rapid rebounds are common during bull markets—hesitation could mean missing optimal entry windows.

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Historical Context: Comparing 2017 and 2019 Bull Runs

Using data from the 2017 bull cycle strengthens our analysis. In both 2017 and 2019, most Bitcoin corrections lasting longer than five days eventually led to deeper declines—often exceeding 10% total loss before reversal.

Moreover:

A crucial takeaway: if Bitcoin drops more than 1% and fails to stabilize within five days, caution is warranted. Such scenarios historically precede larger corrections.

While past performance doesn’t guarantee future results, recognizing recurring patterns enhances strategic planning.

Frequently Asked Questions

Q: What defines a market correction in cryptocurrency?
A: A correction is generally a decline of 10% or more from recent highs. However, traders often refer to any drop exceeding 5% as a meaningful dip, especially in highly volatile markets like crypto.

Q: Should I always buy during a dip?
A: Not necessarily. Timing matters. If the dip lasts longer than five days without signs of reversal, it may signal weakening momentum. Use technical indicators and volume analysis to confirm potential bottoms.

Q: How do sector classifications impact investment decisions?
A: Sector analysis helps identify outperforming niches (like gaming or DeFi) and assess diversification opportunities. Low-correlation sectors can reduce portfolio risk.

Q: Why did WAX and GRIN drop out of the top 100?
A: Declines in trading volume, market cap erosion, or increased competition can push tokens out of the top tier. Both WAX and GRIN faced reduced developer activity and user engagement during this period.

Q: Are exchange platform tokens a good long-term bet?
A: Tokens like BNB or OKB benefit from exchange revenue sharing and ecosystem growth. Their performance often mirrors overall market health but with added utility incentives.

Q: How reliable is historical data for predicting future moves?
A: Historical trends offer guidance but aren’t foolproof. Combine data analysis with on-chain metrics, macro trends, and sentiment indicators for better accuracy.

Data Sources

This report draws on pricing and market data from CoinMarketCap, including daily returns, volatility measures, total gains, and inter-sector correlations. Industry categorization is adapted from MyToken, with adjustments based on functional use cases and market relevance.

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Core Keywords

While this report reflects observed trends during a specific bullish phase in mid-2019, ongoing monitoring remains essential. Market conditions shift rapidly—what worked yesterday may not apply tomorrow. Always conduct independent research before making financial decisions in the crypto space.