Not A Crypto Analyst: Can I Predict Asset Price Correct
Hello! Friends,
Its another weekend as we started the new month which has to be August the 8th month in 2019, this year looks faster in my eyes, I don't know about you. A couple of weeks ago, one of my colleagues was asking me what's how crypto analyst predict the crypto price. He said: I have been reading some crypto analyst prediction and in two or three days after there predictions, the price of the coin or token they predicted will be correct. What is the magic behind this?
The post comes with little understanding about the crypto price prediction I gathered when trading, I won't say is perfect but it can guide you as a beginner.
Note: As crypto price increases or decreases, many crypto traders are losing hundreds to millions of dollars while others are just putting them in their pockets. Meaning as one loses others gains. Do You Want To Be Among The Gainers? See, you can turn to crypto guru in trading by waiting for luck to single you out but I must say, learning trading signals from the crypto market can help you to soar high.
Let me share with you, what has helped me in time past:
- Study Order Book of An Exchange
Whether you like it or not, everybody is a crypto trader in as much you do something related to crypto space. When seeking for the best way to predict the price of a coin in crypto space, reading of an exchange order book is one of the best. Order book shows a real-time list of outstanding orders for a particular token or coin. The importance of order book is to show the interests of buyers and sellers, what they are offering on a particular asset and this will determine the demand and supply of such asset.
I can also call order book, behind the scenes view. It is the view you can check out for before the sale because it is will that reveal to you every order imbalances, market support or resistance zones and market manipulations.
- Be On The Lookout For Traded Volume.
Remember, it is a prediction that can be right or wrong. the traded volume of an asset is very important and can be used to predict the price of a coin or token. This volume reveals the summation amount of currencies traded daily, weekly, monthly and can also reveal to you the number of currencies that were sold from one person to another within a specific period.
Note: As the trading volume increases, it makes the currency popular but this does not always mean the currency price will rise, though is one of the indicators.
- Lookout For Speculations
in crypto space, there is a sudden change in the price of an asset when big players pump or dump an asset. An asset can be artificial receive fast growth when the whale (Big players in crypto) enter the market and place order to increase the price or a token or make an order to dump the price. This usually happens when pumpers wanted newcomers to buy crypto in order to increase the growth of a project or the asset itself. Due to the fact that they have a huge amount of the money, when the activities are at the peak they can decide to become dumpers thereby decline the price of such an asset. Here, there is no indicator to sense this, just register this in your heart, when you sense long-time pump, dump will always come and this is what brings panic in the cryptocurrency market.
- Build Yourself By increasing Cryptocurrency Knowledge.
There are thousands of coins as far as cryptocurrency is concerned and the more your knowledge the more you can predict what happens next. Do you take your time to follow crypto news? Do you know whats going on in crypto space? What can you say about regulations and legalization of cryptocurrency? Three years ago, the price of bitcoin kept dropping 20% daily because of news that place ban on Bitcoin which has to be a rumor. That was in China!
When study, consider the activities of creators of the asset and this can make you have strongly believed in what the value of such asset might be in some months to come.
In conclusion, there are many factors around the prediction of an asset in crypto space, you can discover yourself but it has to do with study and increase your knowledge in cryptocurrency and its technology.
Thank you and Have A Great Weekend.