Want to be Good at Trading Bitcoin? Check out How to Understand His Movement



Want to be Good at Trading Bitcoin? Check out How to Understand His Movement - Bitcoin price fluctuations have been volatile for some time, so it can be said that the volatility is quite high. After breaking the high of $ 64,888.99, but within 11 days may drop to $ 47,073.37.


This 27.5% drop indicates that Bitcoin has entered a bear market, at least in terms of the stock market.


However, unlike the stock market, bitcoin prices usually rise again after falling deep. Even if it falls more than 20%, the price will be higher before it falls.


This is forcing Coindesk to find a new definition of Bitcoin market movement. Two things should be noted to show that Bitcoin is moving in a bear or bull market.


The first is a decrease or increase in price by more than 20%. Second, if within 90 days the price does not return to the highest or lowest price before the change occurred.


With these two definitions, Coindesk has confirmed that Bitcoin is currently still in an uptrend because it has been in an uptrend for the past 407 days, up until this week, since it first rallied in March 2020 in the beginning of the Covid-19 pandemic.


In the absence of consensus on cryptocurrency fundamentals or macro-correlations, such cyclical analysis can be useful for investors seeking to interpret market dynamics.


Apart from bullish and bearish moves, Coindesk also divides Bitcoin's 30-day volatility into three categories: low (<0.5), medium (≥0.5 and <1.0), and high (≥1.0).


This cycle is defined as the period during which the 30-day moving average does not move the 30-day volatility from one category to another.


Based on this experience, he found that Bitcoin price cycles in 2019 got much shorter and remained relatively short compared to the period from 2014 to 2018, which was generally longer.

Post a Comment for "Want to be Good at Trading Bitcoin? Check out How to Understand His Movement"