A crypto trader should be able to identify current cryptocurrency trends. Understanding market trends can help you trade with maximum profit and minimum risk. Therefore, learning how to identify a price trend is crucial for all traders. We will try to show why following crypto trends is important and how to foresee price changes based on a price trend.
Is it really important to follow crypto trends?
A cryptocurrency trend is the direction of price changes over a particular period of time. A bearish trend (downtrend) means that prices move lower by creating lower lows in the chart. Downtrend indicates that sellers are stronger than buyers. Similarly, a bullish trend (uptrend) means that price moves up by creating higher highs where buyers are stronger than sellers.
Identifying and analyzing cryptocurrency trends is one of the ways to conduct technical analysis. Trading strategies that rely on the trends are usually more profitable. Cryptocurrency market trends are similar to stock market trends, where it is best to buy when the market is trending upwards and sell when the market starts to trend downwards.
Is it possible to predict trends?
Many of the novice traders are wondering: how to predict trends in cryptocurrency? According to market analysts, there are some techniques that can allow you to predict the time frame and price range for future crypto trends. These mostly rely on an analysis of the price chart related to the cryptocurrency in question.
For a novice trader crypto price graphs can look like meaningless lines going up and down But they actually show the data that can be useful in predicting future crypto prices. By analyzing these graphs you can see how recent events in the crypto market have affected prices and expect what might happen next. There are three main types of analysis: technical, fundamental, and sentimental. Technology has made them more accessible and easier to conduct.
Cryptocurrency prices move like a zigzag where there is a bullish correction within a bearish move and a bearish correction within a bullish move. Therefore, we can easily anticipate the price based on cryptocurrency trend analysis.
When predicting crypto trends you should also consider the utility of a cryptocurrency. If a coin has several practical applications, it will be more highly demanded, and therefore, increase in price.
How to follow the trends of the crypto market?
You can read articles discussing the advantages and disadvantages of various cryptocurrencies, but current market data will always be the most reliable source for identifying trends and making smarter trading decisions. There are different platforms that provide the current updates regarding changes in price, supply and market cap.
CoinSocialStory offers different tools for following and analyzing trends of the crypto market.
On the main page you can find the list of 100+ cryptocurrencies. You can check their price charts, analyze how the price fluctuated at different periods of time. You can also analyze other metrics like social engagement, trading volume, Github activity, and others.
Crypto comparison tool allows you to compare crypto coins by different metrics: market cap, total supply, trading value, social engagement, and network status. These metrics are aggregated to a total score of one currency against another. What is more, a visually engaging and attractive comparison chart appears as the result of your comparison. Spotting differences between coins can help you better understand the crypto market and its trends.