Bitcoin, in the last two weeks, has shown how its price has been able to change if the economic scenario is even more complex are many factors that have influenced the price of Bitcoin. It is essential to evaluate them carefully because you cannot define a position regarding what will happen to cryptocurrencies if you do not know what is happening globally. In bit-indexai.net, you will find the appropriate information.
Evaluation of the trend and its indicators
Cryptocurrency investors are usually informed through financial web pages that allow them to monitor the events that affect the movements of the main assets and currencies listed on the stock market daily.
Economic calendars are usually the most common tool when investigating what happens in a certain period concerning a specific asset.
When analyzing the movement of the price of Bitcoin, it is necessary to consider that it has been going through a bearish phase that led to a crypto winter and that there may be no certainty when it could end.
At this point, many investors doubt that Bitcoin is going through where it slightly exceeds its minimum of 20,000, and the Fed pronounces a 0.75% decrease in interest rates.
The variables that influence the price are diverse; it is interesting to consider aspects that could define whether a change in trend will occur or we are only showing a rebound; this is where we must evaluate the following criteria:
- If we are facing a price increase accompanied by an increase in demand, it is a change in trend.
- Suppose it is a price increase and a relatively low demand. In that case, it could be considered that there will not be a significant change in the digital asset trend.
- Declining price with increasing supply is a sign of a downtrend.
- Decrease in price with low demand, there will be no change; on the contrary, it could remain at the point where the asset price is.
The level of resistance that Bitcoin has had is mainly based on a price of $23,000, which for many analysts represents the equilibrium point where the trend that has led to the crypto winter can be broken.
All these analyses established as a reference have required time and dedication. Without a doubt, the macroeconomic variables have had a significant impact; on the other hand, the indicators such as the moving averages define the periods in which a change of trend.
Three steps to detect a new trend
It is complex to get out of when you are going through a downtrend; everything has its process. In this case, many rebounds occur before a change is generated.
The key point lies in making continuous analysis of the historical highs and lows that cryptocurrencies have had, managing not only to determine a price as such but also the period in which trend changes usually occur.
A pullback is observed in a displacement that exceeds a maximum bearish trend value; there is a high probability that the trend will change since it has been exhausted. That is when investors prepare their best strategies to attack again.
Japanese candles or bar charts are usually the most used to carry out this analysis, which must be done in periods greater than one day. Therefore, it is essential to be patient and confirm changes.
At the time of venturing into a change in trend, it is like going against the market, which is why it represents a risk if you do not know how to analyze and make the appropriate entries.
The three steps to consider and that many people are unaware of are the following:
- The price increases the downtrend line compared to the last recorded highs.
- The digital asset price continues to fall, descending, but not crossing it but making a rebound effect on the same trend line.
- The price rises, generating a new high that exceeds the last, maintaining a bullish sequence of maximum prices.
Conclusion
We are facing a quite convulsive economic scenario where many variables could affect the current valuation not only of Bitcoin but of all digital assets; it is there where the most significant doubt is reflected about changes in trend.
Bitcoin has shown that it can overcome downtrends only that, according to analysis, it is not yet the time for the crypto winter to end. Still, it has given encouragement that keeps the investment flame alive in both small and large investors.
