How to identify the rising and downward trends of cryptocurrency
The mysterious currencies have been attracted to recent years, and when the new stock exchange, wallets and investment vehicles rise, anyone is easier than ever. However, in the world of encryption, navigation can be overwhelming, especially if you need to identify increasing and rough trends. In this article, we distinguish how to recognize these two key market models that can help you make conscious investment decisions.
What are Rising and Bears Trendi?
Before immersing in the specific properties of the identification of growing and rough trends, we determine what they mean:
* The growing trend : The growing trend is a long -term rise in the price of cryptocurrency. During this time, prices are usually higher and investors are encouraged to buy more coins. Increasing trends often occur when investors believe that markets continue to grow due to increasing demand and limited supply.
* Plant Trend
: The growing trend is long -term in the price of encryption currency over time. During this time, prices are generally lower and investors are encouraged to sell more coins. The tendencies of the plant often occur when investors believe that markets continue to decrease from overwhelming or reduced demand.
To identify ascending trends
So how can I identify the growing trends of cryptocurrency? Here are some key indicators:
- Price Movement : Consistent and accelerating price movement is a good sign of rise.
- Increase Object : As the market growth, more and more investors are buying coins, which can be considered as a positive demand for demand.
- Support Levels : If the price is interrupted above the key level of support, this may indicate that customers are gaining momentum and looking for additional price increases.
- Reducing market volatility : Reducing market volatility is often a sign of investors’ confidence, which may indicate an increasing trend.
- In the interest of institutional investors
: When institutional investors start investing in their cryptocurrency, this can mean increased demand and support on the market.
Identification of plant trends
In contrast
- Price movement : Consistent and slowed price movement is often a sign of account.
- Quantity decreases : With the decline in the market, fewer investors buy coins that can be considered a negative indicator of demand.
- Resistance Levels : If the price break is under the central resistance, this may indicate that sellers will receive momentum and seek additional prices.
- Increasing market volatility : Increasing market volatility is often a sign of increased uncertainty of investors, which may indicate a declining trend.
- The reduced interest of institutional investors : When institutional investors begin to sell ownership, this can reduce decreasing demand and support on the market.
tools that help identify ascending and decreasing trends
Use the composite data of the tools available on the cryptocurrency market:
- Cryptocurrency Trading : Sites such as CoinMarketcap, Cryptoslate and Kraken provide real -time price information and market analysis.
- Software mapping : Tools such as TradingView and Thinktorswim provide the creation of customized tables and analysis of market models.
- Technical indicators : Indicators such as moving averages, relative strength index (RSI) and Bollinger bands can be used to identify trends.
Conclusion
The identification of the rise and decreasing trends of cryptocurrency requires a combination of technical analysis, market research and critical thinking.