weekly bitcoin price analysis based on traders behaviour

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4 years ago

Bitcoin is a native coin of the Bitcoin network created by Satoshi Nakamoto and whose transaction takes place from one Bitcoin address to another without involvement of a third party. This makes it to be considered as a decentralized asset. In order for the transaction to be initiated to the second Bitcoin address, the first one must pay a small transaction cost. The miners running the Bitcoin network will validate the transaction upon receiving the small transaction cost. Since the Bitcoin network is being run by miners, it can therefore be considered to be using a proof of work consensus. On Monday 9th March of 2020, the Bitcoin started trading at around $7600. The price rises again to around over $8100 on Tuesday. This increase in price has been due to traders behaviour in the market. Therefore, the traders behaviour in the Bitcoin market can further be explained as follows;

 

Traders behaviour

 

The bitcoin market is well tradeable since it has a high liquidity . Because of this, the Bitcoin market can easily be traded both in an upwards and in a downwards direction by traders. Therefore, we can say that when the Bitcoin market is moving in an upwards direction, that will be an indication that the number of traders selling it is more than the number of traders buying thus the market prefers to move with few buyers upwards so that it can profit with them and make those many sellers selling it make some losses. On the other hand, if the Bitcoin market is moving in a downwards direction, that will be an indication that the number of traders buying it are more than the number of sellers selling it. Because of this, the Bitcoin market will prefer to move downwards with few sellers selling it so that it can profit with them and make those many buyers make some losses. Since the beginning of this week, the Bitcoin market has shown a potential bullish condition which can continue until the week ends. This bullish condition can further be explained as below;

 

1. Bitcoin bullish market based on traders behaviour

 

In a bullish condition, the Bitcoin market will be considered to be moving in an upwards direction. On Monday the 9th of March 2020, the Bitcoin market started trading at around $7600. By Tuesday the same week, the price had managed to rise all the way to around $8100 which was followed by a decrease to  $7700 on Wednesday and has managed to maintain around there. The increase in price all the way to around $8100 was due to the number of sellers exceeding the number of buyers of Bitcoin. Because of this, the Bitcoin market moves upwards with those few buyers all the way to $8100 as indicated above so that it profits with them and makes many sellers make some losses. Here is the chart for Bitcoin market;

The above represents the Bitcoin market in terms of USDT. Two points are being indicated . There is point A and point B. Before point A, the Bitcoin market can be seen to be moving in an upwards direction all the way to around $8100. This upward trend has been due to the number of sellers selling a given amount of Bitcoin being more than the number of buyers buying a given amount of Bitcoin with their USDT balance. Because of this, the Bitcoin market profits with those few buyers and makes many sellers make some losses. The number of buyers then exceeds the number of sellers thus causing the Bitcoin market to slightly moves downwards to point A at around $7700 where it slightly profits with those few sellers and makes many buyers to slightly make some losses. At point A, the number of sellers again exceeds the number of buyers thus causing the market to again gains an upward pressure where it moves upwards with few buyers to above $8000 where it profits with them and makes many sellers make some losses. In on week time, if the number of sellers will continue exceeding the number of buyers, then there is possibility of the market to continue moving upwards all the way to around $9000 after which the market will resist and reverse to start moving downwards. If you had previously purchased some Bitcoin with your USDT balance and you are still holding them, you can either sell them at current market price of $8100 or you can wait for the market to reach $9000 so that you sell them around there and make more profit since from there, the market will start moving downwards

 

Summary

Since the beginning of Monday, the 9th of  March 2020, the Bitcoin market started trading at around $7600. The market then rises all the way to around $8100 on Tuesday. This increase in price has been due to more number of sellers than buyers thus causing the market to move with few buyers upwards so that it profits with them and makes many sellers make some losses. Therefore, we can say that when the number of buyers are more than the number of sellers, the Bitcoin market will gain an upwards pressure to move with few buyers . On the other hand, when the number of buyers are more than the number of sellers, the market will gain a downwards pressure where it will move downwards with few sellers .

 

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