Identification of bullish and bear trends in cryptocurrency
The world of cryptocurrency has experienced rapid growth and volatility in recent years, and prices have rapidly fluctuated overnight. As a result, identification of Bullish and Bearish trends is essential for investors and merchants who want to maximize their potential yield while minimizing their losses.
In this article, we examine the basics of identifying the tendencies of cryptocurrency bullish and bear, including key indicators, signs and strategies used by successful merchants and investors to predict price movements.
** What are bullish trends?
Bullish trend is a time when the price of cryptocurrency rises consistently. Duration The Bullish Trend, the value of the coin increases around time, or investor optimism leads to future growth prospects, increased acceptance or improvement of underlying technology.
Bullish trends can be identified with various technical indicators and patterns such as:
- Rising peaks : If the price of cryptocurrency reaches new peaks, but the buckets to break the previous levels of resistance may indicate a bullish trend.
- Relative Strength Index (RSI)
: A RSI or 50 or lower over -purchased circumstances that may indicate a potential bear reversal.
- Moving averages : If the relative strength index (RSI) enters above 70% and falls below 30%, this may indicate a bullish trend.
- Volume samples : The increased trading volume may indicate a strong bullish trend.
** What are bear trends?
The bear trend is a time when the price of cryptocurrency is consistently falling. Duration of the Bear Trend, the value of the coin decreases over time, which is often the result of investor fear of future growth prospects, acceptance or underlying technology.
Beerarish trends can be identified using various technical indicators and patterns, for example:
- Increasing Low Points : If the price of cryptocurrency reaches new lows but is unable to break through previous levels of support, this may indicate a bear tendency.
- Stochastic oscillator : The stochastic oscillator or below or below indicates over -purchased conditions that may indicate the potential bullish reversal.
- Moving averages : If the relative strength index (RSI) moves above the 20% level and falls below the 80% level, this may indicate a bear tendency.
- Volume Samples : Decreased Trading Quantity False The new, low or trough may indicate a strong bear trend.
To identify the tendencies of cryptocurrency
In order to identify the tendencies of the cryptocurrency bullish and bear, merchants and investors must consider the following strategies:
- Find the consistency : Bullish trends are usually long -term and it takes several weeks or months to implement.
- Take care of samples : Identify samples such as increasing high levels, falling low points and volume to confirm the trend.
- Observe the technical indicators : Use technical indicators such as RSI, moving averages and stochany oscillator to identify potential trends.
- Diversify your portfolio
: To minimize risk, distribute your investments in several cryptocurrencies.
- Be informed : Stay with up -to -date market news, events and regulatory developments that may affect the prices of the cryptocurrency.
Example: Bitcoin vs. Ethereum
In recent years, the price of Bitcoin (BTC) has experienced a bear tendency due to the increase in competitions of other cryptocurrencies such as ETHEREUM (ETH). The stochastic oscillator and moving averages have red flags flashing with legs, while the relative strength index (RSI) is below 30%. Meanwhile, the relative strength index (RSI) or ETH exceeded 70%, indicating the potential bullish trend.
