@merurial9 5 August 2020 more from that month

3 Factors influencing crypto prices

The buying of crypto is determined by the probable customer demand and, for the most part, expectations as to future price trends. The vast number of factors influencing these expectations can themselves be divided up systematically in fundamental and technical factors. Fundamental Analysis These generally provide more longer-term guidelines as to price movements on the crypto markets. The term fundamental can be defined as “being very important, the most important or basic parts of a subject or activity.” This definition aptly described the importance of these factors when analyzing the potential longer-term movements on the crypto markets. The fundamental factors, some of which are listed above, are the bases on which one coin should be valued against another coin. Technical Analysis Technical factors exert considerable influence on crypto prices, especially in the short term. A sudden inflow or outflow of funds can cause significant pressure on the crypto markets – this pressure being brought about due to technical reasons. This pressure is likely to be short-lived – after that, the fundamental factors will again be the driving force. Technical analysis could also refer to the study of “forecasting” charts as maintained by many traders. These charts, be they point and figure, moving averages, overbought/oversold; stochastic, etc. provide traders with significant buy & sell signals. Chart analysis is based on the assumption that moods, anxieties, psychological motives and expectations are reflected in the specific behavior patterns of market participants and thus in price movements. Chart analysis rests on the underlying assumption that all price-relevant information is discounted in the current price developments at any one time. Consequently, according to traders, there is no need to research the fundamental causes of price movements. Sentiment “Sentiment is an emotion which influences a person’s behavior.” One must never underestimate the influence of market sentiment, especially in the crypto markets. Many a time, crypto markets have strengthened or weakened (almost entirely) due to emotion. There are neither fundamental reasons nor any particular technical reason for the re-adjustment in crypto prices – a coin becomes “flavor of the month” or “ex-flavor of the month”. Thank you for reading and hope you have a good rest of the day! I also post my content on the following platforms: Publish0x: https://www.publish0x.com/@aftershock9   Hive: https://hive.blog/@mercurial9   PeakD: https://peakd.com/@mercurial9/  Steempeak: https://steempeak.com/@mercurial9   Instagram: https://www.instagram.com/minimalistpixel/?hl=en   Read.cash: https://read.cash/@merurial9   Uptrennd: https://www.uptrennd.com/user/MTIzMTYy