How to see the trend of the cryptocurrency market in the future?
It is not easy to understand the trend of the cryptocurrency market in the future. If you look back carefully at the past trends, you will find that most of the time, the market of the cryptocurrency market is like "swinging", fluctuating up and down, which we call "oscillating market". This kind of fluctuation accounts for about 80% of the time, while the "one-sided market" that goes up or down all the way is only about 20%.
In the face of oscillating market, you have to have a strategy. First of all, you have to understand how much the currency you invest in will fluctuate in a day. It's like you know how high a swing can swing. Knowing this range, you have an idea.
Now, let's say we are talking about Bitcoin (BTC), which may fluctuate 3,000 points in a day. If it is swinging within this fluctuation range now, what do you do? There is an important point here called the "central axis". You can imagine this fluctuation range as a box, and there is a midpoint between the top and bottom of the box, which is the central axis. If the price is just near this midpoint, then you'd better not rush to buy or sell, because at this time the price may go up or down.
But if you see the price is close to the top or bottom of the box, it may be a good opportunity. But don't rush, don't buy or sell directly when you see the price is at the edge. You have to wait for a signal, just like waiting for a swing to reach the highest or lowest point before selling. This signal may be a special candlestick pattern, or a prompt given by your trading system.
Another important point is that volatile market conditions sometimes lead to trend changes. For example, if Bitcoin starts to oscillate in a box after rising for a period of time, and then suddenly breaks down, it may mean that the next trend will change from rising to falling.
Therefore, to see the trend of the currency circle, you should not only pay attention to price fluctuations, but also learn to wait for the right time and signal. In this way, you can stabilize your position in the volatile market and even seize the opportunity of a turnaround.
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