Each country seems to be on a one-day street of its own when it comes to predicting the future price of bitcoin and other cryptocurrencies. Numerous cryptocurrency exchanges are available online, including bitcoin-eraapp.com. The withdrawals on this platform are quick with extraordinary security. Every day, bitcoin moves thousands of dollars in either direction because some market buys and sells at a particular time or moment.
The price difference can be attributed to the fact that it’s a 24/7 market where investors worldwide sell and buy in real time. So if there are more sellers than buyers, bitcoin could fall; if there are more buyers than sellers, bitcoin could rise. In addition, some factors, like when specific cryptocurrencies get listed on an exchange for buying and selling, can influence prices.
Bitcoin alone is a volatile asset, which is why many industry leaders have said that it should not be used as an actual currency to pay for goods and services unless you want to lose your money. Despite its volatility and how it’s used or abused by a few nefarious groups who launder their money using bitcoin exchanges, people still use it to make a lot of money. 2017 saw this virtual currency’s mass adoption by investors and consumers alike. Let’s explore different ways to predict the future price of bitcoin.
Market Sentiments:
People who are looking to invest in cryptocurrencies and blockchain technology have a wide range of strategies to choose from. For example, they choose to buy bitcoin or another digital currency at whatever price they want, and they can also choose to invest in an ICO.
The two most common ways people predict the future price of bitcoin is by looking at how people act when there is a change in market sentiment. People act depending on how much access people have and what’s driving that behavior change. If investors see an increase in prices, they will likely pay more attention to the price of digital currencies. People who feel digital currencies are undervalued or fundamentally undervalued will buy them at higher prices.
The other form of market sentiment is how users globally feel about tokens. When most people think a platform or ICO is excellent, this can influence prices and become a self-fulfilling prophecy. Conversely, if people believe in a project, it will generate demand for its token and therefore generate higher demand.
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Two things affect price action daily: market sentiment and news flow. What people believe to be true will affect the price of digital currencies. When the other hand, when it is released, users and investors can react if they think the news is counter to their expectations; this could also be why price changes are often unpredictable.
Regulatory Actions:
If there are negative regulatory actions against bitcoin in a particular country, then that could influence the future price of bitcoin. Just like in any other country, there may be concerns about how people should regulate cryptocurrencies or how governments should control cryptocurrency exchanges.
Two things are affected by regulatory actions on the market: regulations on cryptocurrency exchanges and government oversight of ICOs. When there is a concern that governments are planning to regulate bitcoin actively, there is a higher chance people will sell their coins. On the other hand, when governments allow digital currency exchanges to thrive, this could result in more buyers buying digital currencies.
An example of this was highlighted in China when the government announced it would ban ICOs and stop all ICO projects before raising funds. It resulted in the price of bitcoin falling by a significant amount. However, even though bitcoin is still illegal in China, people decided to buy bitcoins to convert them into other cryptocurrencies that the Chinese government did not ban. And when the country also banned bitcoin alongside every privately mined cryptocurrency, it led to a cryptocurrency market crash.
Learn fundamental and technical analysis to predict the price:
For a trader, it doesn’t matter if the price of bitcoin is rising or falling. It makes technical analysis a valuable tool that can predict market movements, but the problem is that there are so many different indicators to use.
For example, you can use Bollinger bands and RSI; you can use MACD and Elliott Waves; you can even use Fibonacci retracement levels paired with volume indicators to try and predict future prices. The point is there are a lot of different tools in your trading arsenal, so don’t limit yourself to just one or two of them.
Suppose experts say bitcoin must be worth about $10,000 based on its intrinsic value. In that case, you can determine if the price is going up or down by using non-correlated indicators to predict whether or not there are more buyers or sellers on the market.
By combining fundamental analysis with technical analysis, you can get better results in predicting future prices.