Technical evaluation is essential, however proper now I believe that one shouldn’t rely completely on chart evaluation and indicators to foretell Bitcoin’s worth motion. For instance, on the finish of July and mid-August some indicators, corresponding to MACD or RSI, clearly confirmed a pattern inversion that didn’t occur.
One in every of Bitcoin’s distinctive options is the mining system and I believe that, proper now, this performs an essential function in worth evaluation. After Bitcoin hit $30 in July, many individuals invested in mining rigs and problem rose quite a bit. These persons are wanting ahead to get their funding again and, since Bitcoin is extraordinarily infalctionary proper now (50 new cash each 10 minutes), there’s a massive promoting drive on the markets.
If miners promote 30 cash out of every block, we’d like round 1 million {dollars} per thirty days to maintain the value at $5.
I additionally consider that the $30 spike was brought on by media publicity. Such a small market will be simply manipulated by a number of severe buyers.
Details:
- Use Technical Evaluation rigorously.
- Think about the variety of cash per block and the cash invested by miners
- Preserve a watch for essential information which will entice new buyers to the market
To complete, right here is one inventory behaviour that I may determine: the useless cat bounce.
A useless cat bounce is a buying and selling time period used to outline when a inventory in a
extreme decline has a pointy bounce off the lows.
