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Identification of bullish and bear trends in cryptocurrency
The world of cryptocurrencies has registered rapid increase and volatility in recent years, and prices have fluctuated quickly overnight. As a result, the identification of bullish and ugly trends is essential for investors and traders who want to maximize their potential yield, minimizing their losses.
In this article, we examine the basic elements of identifying the tendencies of cryptocurrency bullish and bear, including key indicators, signs and strategies used by successful traders and investors to predict price movements.
What are Bullish trends?
The bullish tendency is a period when the price of cryptocurrency is constantly increasing. During the tendency of Bullish, the value of the currency increases over time, which is often the case of investors’ optimism on future growth prospects, due to increased acceptance or developing technology.
Bullish trends can be identified with various technical and models, such as:
- Rising peaks : If the price of cryptocurrency reaches the new peaks, but is not able to go through the previous levels of resistance, this may indicate a stingy tendency.
- Relative resistance index (RSI) : RS 50 or below indicates circumstances bought over which they may indicate the potential reversal.
- Motioned media : If the relative force index (RSI) enters over 70% and drops below 30%, this may indicate a bullish trend.
- Volume samples : The increased trading volume may indicate a strong tendency in bullish below a new or tip.
What are the bear trends?
The tendency of the bear is a time when the price of cryptocurrency is constantly decreasing. During the tendency of bear, the value of the currency decreases over time, what is often the result of the fear of investors due to future growth prospects, decrease problems related to acceptance or basic technology.
Bear trends can be identified with various technical indicators and models, for example:
- Low points increase : If the price of cryptocurrencia reaches new minimum values, but it is not able to go through previous levels of support, this may indicate a bear trend.
- Stocastic oscillator : a 30 or lower storage oscillator indicates the conditions of obligation that may indicate a potential reversal in Bullish.
- Motioned media : If the relative resistance index (RSI) moves above 20% and drops below 80%, this may indicate a bear trend.
- Volume samples : The reduced trading amount during new, low or troughs may indicate a strong bear trend.
To identify cryptocurrency tendencies
To identify the tendencies of Cryptocurrency Bullish and Bear, traders and investors must consider the following strategies:
- Find consistency
: Bullish trends are usually in the long run and may require implementation for several weeks or months.
- Take care of samples : Identify samples such as high level increase, low points and volume to confirm the trend.
- Observe the technical indicators
: Use technical indicators, such as RSI, moving media and stocal oscillator to identify potential trends.
- Diversify the portfolio : To minimize the risk, distribute -you invest in multiple cryptocurrency.
- Be informed : Stay with news about the market, events and regulatory developments that can affect cryptocurrency prices.
Example: Bitcoin vs. Ethereum
In recent years, the price of Bitcoin (BTC) has experienced a bear tendency due to increasing the competition of other cryptocurrencies, such as Ethereum (ETH). The stocal oscillator and moving media stole red flags, while the relative resistance index (RSI) was below 30%. Meanwhile, the relative resistance index of ETH (RSI) exceeds 70%, indicating the potential tendency in Bullish.
