How to Predict Crypto Prices Going Up or Down?

Cryptocurrency It has become the current investment trend in Indonesia. Even Indonesia is known as one of the countries with relatively high crypto-technology in the world. This is evidenced by the proliferation of crypto exchanges in this country such as Tokocrypto, Indodax, etc.

But few people know that this cryptocurrency market is extremely volatile. For example, Bitcoin price can drop almost 50% over the past 6 months. Although this asset is expected to be the top crypto currency.

This volatility requires traders and investors to be able to accurately understand the ups and downs of crypto. So they can set the right time to open positions. So how to predict crypto prices? Here are some alternatives:

1. Read the appraisal feature

One of the easiest ways to predict crypto prices is to read the price estimation feature from the page. CoinmarketcapAs one of the most visited crypto database pages in cyberspace. The coin’s market capitalization attempts to assist traders in price analysis by providing a price estimation feature.

Price estimation is a feature where web page users can enter forecasts about crypto asset price changes. User Generated Content An alias where each user can enter their own predictions. As a result, the accuracy of these estimates is somewhat questionable.

to overcome this Coinmarketcap A special weighting system has been provided for each prediction entered by the user, focusing on the user with the most accurate and consistent predictions. However, the details of this calculation are known only to the in-house team.

2. Using Technical Analysis

Technical analysis is an analysis that involves calculating statistical data about the price of an instrument. The idea behind this analysis is quite simple: the history of price action repeats itself over and over again. Therefore, traders need to analyze historical price data.

Predicting crypto prices using this technique will be easier if you have traded stocks, forex or other instruments in the past, as the technical indicators are the same. Only the natural conditions of the tools are different.

various best crypto exchange There is already a chart feature that you can use to view price candlesticks for a specific period of time.

There are several technical indicators that are commonly used to forecast the price of financial instruments, such as the convergence of the moving average (MACD), Average Directional Index (ADX), Relative Strength Index (RSI), and others.

Now you can use various technical indicators. that are automatically provided in trading applications, however, you also need to know the “story” behind each indicator. Because each indicator has a different story. And these differences can lead to different interpretations of the analysis results.

3. Using Fundamental Analysis

Fundamental analysis is an analysis that explores the reasons behind the changes in the price of an instrument based on other factors. In addition to the price statistics itself, for example, this analysis attempts to answer, “Why is Luna’s price dropping? Is TerraLabs bankrupt? Or the project Luna was trying to create failed?”

In the context of the crypto market, the fundamental characteristics behind crypto assets are national and international economic conditions. Projects built on the revenue from crypto sales, the talents of the respective crypto developers, and the level of public trust in these crypto developers.

so you should read white paper crypto coins before you buy This is because this document contains important information about the crypto developers involved, capabilities, projects to build. and the quality of the relevant crypto asset audit results.

Unfortunately, compared to forex, let alone stocks, the material for fundamental analysis of crypto is not too much. The reason is that there is no real-world property that becomes “Basic Assets” of this tool Indeed, quality “Basic Assets” on stable coin Which depends on the fiat currency. Many people are skeptical. In fact, this type of crypto coin analysis is relatively simpler because it is similar to conventional forex analysis.

4. Using Sentiment Analysis

in trading financial instruments A combination of technical and fundamental analysis may not be enough to accurately predict asset price movements. Another factor traders must consider is the confidence factor.

These factors include non-technical and fundamental things that can affect asset prices, such as the movements of large investors and traders. Influence of Influencers on Social Media movement of institutional investors, etc.

Therefore, crypto traders need to update financial news daily. Fortunately, today there are many applications and websites that can be used to access news. In fact, it’s infrequent. cryptocurrency trading app Provide news on the movement of investors in the city.

While this factor is important, crypto traders also need to be careful. It is advisable not to go to FOMO when there is booming news in the market. Continue to use technical and fundamental analysis so that you can trade and invest smoothly for a long time.

5. Reading Research

One of the value additions that crypto investors and traders can read to find out the pros and cons of crypto is to read research on the topic. “Analysis of crypto price changes using the Blablabla method” This value addition is useful in helping traders in many areas, such as:

1. Understand how technical indicators work This is because many technical indicators move according to statistical patterns.
2. Understand how to forecast crypto price changes using alternative techniques. There are many technical indicators that traders can use. Unfortunately, not all of these statistical indicators are popular.
3. It helps predict whether fast or slow changes in crypto prices are caused by fundamental shocks to the domestic and international economy as well as fundamental aspects of crypto itself.
4. Help predict the property that will flourish in the future. It is not uncommon that research institutions It will release special research results on predicted crypto price movements over the next few months to years.

Where can these studies be accessed? In addition to being able to read official financial and economic journals You can also access the results of this research through various financial news websites and applications such as Bloomberg, CNBC, Yahoo Finance, Marketwatch, etc. Generally for good research. Users will be asked to pay the subscription fee first.

There are several methods you can use to predict whether crypto prices will rise or fall. instead of using each method separately. Traders are advised to combine the methods above. The goal is that the results of the analysis can be more comprehensive, accountable, and most importantly, more accurate.