The cryptocurrency market has taken a rough path, thanks to recent events, however, this hasn’t stopped whales from piling on bitcoin. In fact, with the current price, the recent accumulation is very understandable, especially for stores. Recently, however, there has been a significant increase in the price of Bitcoin, which could lead many unsuspecting people to believe that the crypto winter is over. However, what may also be an accepted theory is that current events have in fact “softened” the cryptocurrency winter, but the present moment is still characteristic of this winter.
Experts point out that the $15,000 area is a very solid area, to the point of showing signs that this will be a bottom, however, macroeconomic and corporate events in the crypto environment could generate reverse pressures on Bitcoin, throwing it to the $12,000 house. Hence the importance of incorporating this scenario into your investment decisions.
This decline in prices is what we call negative pressure. In 2017, the traditional market and political decisions did not affect Bitcoin much, however, this is no longer the reality when we talk about today. Therefore, political decisions and central bank positioning can influence the price of bitcoin, since many institutional investors have come to the cryptocurrency market.
However, this exodus of traditional investors has brought some vices that were overcome even then, when we look back at the teachings of Satoshi Nakamoto: You cannot trust a third party, especially when they have your resources.
All this leads us to a complex world with a lot of information. This article started talking about bitcoin whales, but there are other indicators to use in analyzing cryptocurrency, here are six good ones:
Price: The current market price of a cryptocurrency can be used as an indicator of its popularity and value. Trading Volume: The trading volume of a cryptocurrency can be used as an indicator of liquidity and trading activity. Market Capitalization: The market capitalization of a cryptocurrency can be used as an indicator of its importance and size in the cryptocurrency market. Exchange rate: The exchange rate of a cryptocurrency against other cryptocurrencies or fiat currencies can be used as an indicator of its relative strength. Technical Indicators: Technical indicators, such as the Relative Strength Index (RSI) and Stochastic Oscillator, can be used to identify price trends and trade entry and exit points. News and Essentials: Follow cryptocurrency-related news and basics, such as regulation, partnerships, project development, etc.
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Notice: The text in this column does not necessarily reflect the opinion of CryptoFácil.
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