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What makes all these currencies unique is the technology, encryption, and philosophy they use.
Will cryptocurrencies go up or down? This is a question that almost everyone has a hard time answering. But how do you know if a cryptocurrency will go up or down at a given moment?
Here you will find the answer.
Table of Contents
How do you know if a cryptocurrency is will it go up or down
When an investor thinks about starting to invest in cryptocurrencies, the first thing they usually feel is fear.
For this reason, it is wise to know well what you intend to do before investing.
Another big problem investors face is knowing When will the price of cryptocurrency rise or fall?.
Knowing how to predict the price of Bitcoin, and predicting the price of cryptocurrencies in general, is not easy, but there are several factors, such as: Regulations and technical breacheswhich can be affected by unexpected market fluctuations.
Many users Buying a cryptocurrency when its price is too high and selling it when its price is too low. Beware! This is a mistake.
To avoid losses in your investments, you need to be Well informed about real-time market movements and the project behind the cryptocurrencyThis will give you a better understanding of how to predict the price of cryptocurrencies. It is highly recommended to use tools like Coinmarketcap (global ranking of cryptocurrencies and exchanges based on various criteria) or TradingView in such circumstances.
If you need To track multiple cryptocurrencies With multiple charts at once, you can visit Cryptowatch, which uses TradingView charts and tools, allowing you to view multiple charts at once and Customize them.
What makes a cryptocurrency Up or down?
The easiest way to know about any potential market volatility is to: By monitoring exchanges and movements Buy and sell Bitcoin worldwide.
⏯ For those who do not have enough time to devote to cryptocurrency trading, Some forums or online chats that keep up with the changes that happen daily.
⚠ Another way to stay on top of market trends is to: Spend some time reading the opinions of experts on the topic, Bitcoin market analysts, and cryptocurrency price prediction specialists.Robots can also be used to perform: Market monitoring functionS
Best Cryptocurrencies Trading signals
Cryptocurrencies are highly volatile in value.Therefore, it is difficult to determine the ideal time to invest in it.
However, it is possible to identify some cycles that repeat over and over againThere are some cryptocurrency signals that can help us when making decisions.
1️⃣ Degree of adoption By users.
2️⃣ innovation and development.
3️⃣ Mayer numerous.
4️⃣Evaluate Super (Profit to Output Spent Ratio).
5️⃣The MVRV Ratio (market value to realized value).
6️⃣ the Liquidity From cryptocurrency.
7️⃣ Technical Trading Indicators.
Signal 1: Degree of adoption
the value to Cryptocurrencies Varies depending on supply, demand and user commitment.
the More speculation There is a cryptocurrency, Low user adoption rate tends to be.
For example, if a cryptocurrency is worth $1 today, $5 tomorrow and $0.5 the day after, it will not have much credibility in the eyes of users.
Signal 2: Innovation and development
Cryptocurrencies I’ve become annoying innovation for society because it defines a new model of interactions between economic agents: it ensures Electronic transactions Without the need for authority to control them.
If cryptocurrency is not in constant developmentit risks falling into oblivion.
What is the innovation behind Bitcoin?
Bitcoin allows transactions to be made in real time.The transfer process can be completed in less than 20 minutes.
Signal 3: Mayer multiple
It serves as an indicator to know if a symbol is in a bearish phase when its value is below 1.
Mayer multiplier is a multiplier. Current Bitcoin price is above the 200-day moving average..
Moreover, simulations conducted in the past have confirmed that Best long term result This was achieved by accumulating Bitcoin as long as the Mayer multiplier was less than 2.4.
Signal 4: SOPR values
It reflects degree of gain and loss This is achieved through all the coins moving in the chain.
This indicator tells us when Significant price changes occur. Thanks to the data uploaded to the blockchain.
In short, it is It is the value achieved (in US dollars) divided by the value at which the output was created (in US dollars).:
- Selling price / price paid.
Historically, the index has reached values ranging between 0.9 and 1.35A value of one means that the market is in a bearish state. neutral country.
Signal 5: MVRV Ratio
Measures relationship Between the market value of the asset and its realized value.
It is a measure used for Long-term cycle analysisDetermine how much profit the Bitcoin market makes in relation to the volume of crypto assets traded.
- Maximum: 3.7. If MVRV moves above this level, it indicates that Bitcoin is overvalued.
- Minimum: 1. If MVRV moves below this level, it indicates that Bitcoin is undervalued.
MVRV is Excellent indicator of ups and downs. Cryptocurrencies, especially Bitcoin. MVRV rises indicate that the market is at its peak, while MVRV declines occur when the market is in a downtrend. Accumulation period.
Signal 6: Liquidity
Cryptocurrencies Liquidity is the ability A currency that can be easily converted into cash or other currencies. In such A method that makes it easier to convert assets into cash, and is said to be more liquid..
Cryptocurrencies with low liquidity have a significant impact. The difference between supply and demand.
Be careful, buying them will cost you more.
Signal 7: Technical trading Indicators
Traders should not fill every chart with all available indicators.
Use Too many indicators will only hinder the cryptocurrency trading process and create confusion..
There is no perfect set of indicators that will give better results than others.It’s just a matter of Preference and Practice.
the The following indicators It can help you find out whether a cryptocurrency will rise or fall in price. Short term.
- Differences
When separation occurs, something happens. mistake.
the price He is lying to you, The trend will change. In the direction the indicator warns of.
As you can see in the picture, The price is going down, but the divergence is telling you that there will be a change in trend. (Until then it was bearish, but now it will rise again.)
2. Size
A Price range Where a Lots of Amount It accumulates level Market participants consider importantAnd this interest In buying or selling is what causes appropriate Support and resistance of the pattern.
On Coinmarketcap you can see the volume of each cryptocurrency over the past 24 hours.It’s funny, because sometimes some cryptocurrency comes out that you didn’t expect.
3. Candlestick chart
This is probably the most common way to evaluate the price of an asset.
there Bullish candles (green color) and bearish candles (red color).
Each candle represents Price change over a specific period of time (30 minutes, 1 hour, 1 day, 1 week, and 1 month). The lines outside the candle represent the lowest and highest levels during a period of time.
The simple fact of looking at a chart and identifying some levels will give you The most valuable guide So that you can trade it.
If you look at the chart, mark Most important levels If you look at the price peaks, you will be able to see how they represent increasing highs and lows in the trend, and as they approach the level you have identified, this sequence is lost and decreasing highs begin to appear.
This is when you need to put it into action. Entry techniquesto see if it is beneficial for you to jump right into this (potential) change in trend, or if it is better to wait.
conclusion
When it comes to finding and identifying cryptocurrency signalsmany styles that can serve you well.
As with everything in life, it’s up to you. Your criteria and preferencesIn general, it would be most effective (in my opinion) to take Cryptocurrency Price ActionBecause this is what will confirm that this change in direction has actually happened.
In this article, I’ve written down my favorite signals, but that doesn’t mean you have to use them all.
Knowing how to read cryptocurrency charts will be a huge advantage. When trading cryptocurrencies, it will give you an idea of when to enter or exit a trade, increasing your profitability.
but, Each of them has its own main factors to control the world. commerceRemember to invest wisely.
