General cryptocurrency market analysis involves a set of steps to understand trends and factors that affect prices and market volatility:
### 1. **Monitoring general market trends**:
**Uptrend/Bearing**: Determine whether the market is trending up or down by monitoring indicators such as the Bitcoin price, which is often considered an indicator of the entire market.
- **Volatility**: Monitor daily and weekly volatility to understand how stable the market is.
### 2. **External factors**:
- **Economic news**: such as changes in global financial policies, such as interest rates from central banks.
- **Political events**: such as elections or government changes that may impact regulatory policies for cryptocurrencies.
- **Technological events**: such as security breaches or major updates to cryptocurrency protocols.
### 3. **Internal factors of the digital currency market**:
- **Liquidity**: An assessment of the trading volume and amount of currencies traded in the markets to understand how easy it is to buy or sell currencies.
- **Popularity**: Monitor online searches, increase in new users, and social networking activity.
- **Regulation**: Study of regulatory developments in different countries around the world, especially in major countries that influence the market.
### 4. **Quantitative indicators**:
- **Total Market Cap**: Gives a general idea of the size of the entire cryptocurrency market.
- **Dominance Ratio**: Analyze the dominance ratio of Bitcoin or other currencies like Ether to understand their impact on the market.
### 5. **Group Psychology (Sentiment Analysis)**:
- **Public opinion analysis**: Use tools to analyze opinion on social media and trading forums to understand whether the public is optimistic or pessimistic.
### 6. **Historical Analysis**:
**Past Patterns**: Study past patterns in the market to look for repeating behaviors.
Example
When analyzing the general market in Egypt or any other country, local developments such as government policies regarding cryptocurrencies, the level of local adoption, and the available technological infrastructure should also be taken into consideration.