Get trading recommendations and read the analysis on Hacked.com for only $ 39 a month.
With the current market movement (or lack thereof), it is important to understand the forces behind it and, at least to some extent, to find the reasons for the current immobility.
Why does the price move laterally?
-Disclaimer: My opinion is not financial advice. Investing in cryptocurrencies has huge associated risks in order to read as much as possible to make better-informed decisions-
In my latest articles, we discussed how smart money and silly money forces push the price up or down. If we align this trend with the general population’s lack of interest in cryptocurrency and bitcoin, it becomes clear why the price has shifted sideways.
Social Media Trend Lines
One thing I really like to do is to see how people have felt about bitcoin lately. To do this, we can check google trends for example.
Yes, the the peaks correspond to the huge price increases and declines that occur throughout the period from November 2017 to February 2018. What we see for March 2018 is a continued decline in people’s interest in bitcoin.
Another key feature of price understanding is how many new funds arrive on the cryptocurrency market. To do this, we look at the volume.
Seems like it’s fishy, no ? As you can see, the volume was very low in all exchanges. And we are studying bitcoin, the most widely traded cryptocurrency. This also makes it clear that there is no new money in bitcoin, at least not smart money, since a low volume usually means that no huge amount of money is available. 39 Fresh money arrives on the market. If we check the number of transactions, this should give us a confirmation of what we have just done, that is, if the number of transactions decreases over time.
Here you have it. The lower volume of trade means a smaller volume, which is probably due to the lack of new people entering the bitcoin market.
-Man, I like Bitcoinity, their interface to view different data sources is top notch. I urge you to check it-
Although no one is betting on bitcoin, that does not mean that the technology does not improve. In the last two months, two major breakthroughs have taken place. Well, three to be precise.
To prove how wonderful it was, I will base my conclusions on two different sets of data. We first see how the hash looks, that is the number of machines trying to solve blocks, thus supporting the network.
As you can see, it has increased over time. This is wonderful news, although the mining pools are a bit centralized, which can be a problem. Nevertheless, more and more resources are coming in bitcoin, which is a good thing for me. I am not of the opinion that PoW is a total waste of energy because it was used all over the world, the energy consumption would not skyrocket because it does not There is no link between the number of minors and the number of users. mechanism that has been proven to work on a larger scale. If PoS, directed acrylic graphs, hashgraph, tolerance to Byzantine faults and many other options that exist to reach consensus on a larger scale, then I am completely to adopt a new method. Until then, let’s focus on what really works and test different options.
Secondly, we look at the amount of data on each block, because the purpose of segwit was to make smaller blocks, so able to have more block transactions. To check if there is community support, we check the average number of transactions segwit:
Adoption is on the rise among the big players because there has been a huge peak recently . Plus though, if we look at the adoption rates of segwit transactions, we are also greeted with a pretty positive outlook.
Where will the price go? Upwards or downwards?
Many different results can be taken into account and, as some AT experts point out, low levels of support exist because they have huge amounts of commands ready to accumulate bitcoin at the same time. lower price.
Nevertheless the trend line is positive as long as Bitcoin does not go below the line of $ 11,000.
If you want my personal (and non-financial) advice on how to behave, here’s what I usually do:
- Follow the smart money: buy when it is low, sell when it is high.
- Do not be excited by the news. 90% do not matter.
- Listen to people who have some form of cryptocurrency expertise, then try to adapt what I’ve learned to my personal strategies (trading, analysis, technology development, etc.). ).
- Think for yourself and do not become greedy. Owning your mistakes is the easiest way to improve.
At the end of the day, for a new technology to be exciting, it must necessarily be too publicized. If you can share with me in the comments section below, an example of a completely undervalued technology that later dominated the market, I’m all ears.
Patience. Use the force. Think.
The Corner Coin Exchange Crypto Coinbase is being sued for insider trading in Bitcoin Cash first appeared on CCN
Follow us on Telegram.