With cryptocurrency, it is important to understand whether the project will close soon. According to forecasts, bitcoins will come to this line by 2140, i.e. you can still invest in them. In general, a number of trends will need to be studied:
- Maximum and minimum peaks;
- News field around selected digital coins;
- Calendar of upcoming economic events
Experienced traders never enter the market close to the “extreme” trend values. If the current rate is close to the maximum, then you cannot buy bitcoin. And vice versa – at the bottom of a downtrend they do not sell it. It is more profitable to wait for either a breakdown of the maximum / minimum or a price reversal. When the value level is inside the trend, cryptocurrency trading can be carried out without restrictions. Visit http://xn--millionrsleben-cib.de for the best choices.
Watching the news often allows you to predict the growth / fall of the value of assets. Useful will be the use of an economic calendar. It indicates the most significant events – the publication of economic indicators, statistics on the population. Although the cryptocurrency is not directly connected with any country, trading a pair with the US dollar forces one to take into account the effect of this currency on BTC.
Technical and fundamental analysis in Bitcoin trading
Externally, judging by the schedule in the MetaTrader 4 terminal program, cryptocurrency trading is similar to working with currency pairs. Candles, trends, lows and highs are formed. But the situation with bitcoin / altcoins is somewhat different. The cryptocurrency market has no such history as the US dollar or the British pound. Plus, digital coins are not tied to any country, so events in individual states do not directly affect the exchange rate.
The basic tenets of technical analysis will have to be applied with certain reservations:
- The market price takes everything into account – the widespread excitement around the sharply increased exchange rate is more influencing the value of Bitcoin, so you can’t seriously count on this factor;
- The market is subject to trends – this rule works with cryptocurrency normally. If the trend has begun, the price changes stepwise, with correction;
- History repeats itself – the growth dynamics of the Bitcoin exchange rate is so high that there are no price repeats yet.
Fundamental analysis, as it is used to assess trends in currency pairs, is practically not applied to cryptocurrency. But the question “How to trade bitcoins” can still be answered.