Cryptocurrency is gaining more hype around the world. Since the rise of Bitcoin to 60.000$ last couple of months, people now turning their heads into cryptocurrency investments. Now, Bitcoin undergoes a major dip, but Bitcoin has suffered from a major dip many times in the past decade until it recovers and reaches a new temporal peak again in the last couple of months.
Predicting Cryptocurrency Market
The cryptocurrency market is almost the same as the stock market in general. The differences between the two are the time of trading and the regulation. Cryptocurrency is non-regulated (for now) and stock is regulated. Trading crypto can be done 24/7. Since it’s almost the same with the stock, then predicting the market and its price can be done in several ways just like in the stock market.
- Technical Analysis
Technical Analysis involves learning statistical trends based on historical activity and prices. The timely basis on price changes, indicators, and trading volume plays an important role in predicting the price in technical analysis. Technical analysts usually believe that prices follow trends and history will repeat itself.
- Fundamental Analysis
Fundamental analysts believe in value, not price trends, or history. The fundamental analysis is based on how a company/crypto developer works, and how the coin/token is worth for value. The fundamental analyst does not care about the market dip as a whole, when they believe in the value of the coin they surely will invest. They believe that price will eventually follow the value at the end of the day.
- Sentimental Analysis
Sentimental Analysis is usually applied by day traders. The sentimental analyst does not care about the value or price trends, they believe in the new, rumor, and social sentiment. Look at Dogecoin, a coin where most people don’t notice, it has no utility, and the coin is intentionally made for a joke. But, when Elon Musk, the richest person on earth, say anything about Dogecoin, the price skyrocketed. Now Dogecoin is in the top 10 crypto coins with the highest volume in the cryptocurrency market.