What Signs Can Tell Us A Price Increase? Bull & Bear Market

What Signs Can Tell Us A Price Increase? Bull & Bear Market


In this article we will see what are the signals to consider that could make us hypothesize an increase or decrease in the value of a crypto.
As you all know, value depends on supply and demand.
As demand increases, the price increases. But what are the other signs that should be considered?

 

-Supply (means the partial or total supply of a crypto; if tokens are burned by reducing the supply, the value increases. A lower supply makes the good rare and if there is demand...the value can only increase)

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-Dominance (this is the percentage of market capitalization held by BTC compared to altcoins. As BTC's dominance increases, it means that capital is shifted from altcoins to BTC by increasing the market capitalization of BTC)

-Hashrate (obviously a decrease in this value indicates an "abandonment" of the network with subsequent decreases in the value of the crypto; let's talk about Proof Of Work)

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-Belief Area (it tells us how many holders / investors of BTC are in profit or loss. If the parameter increases it means that there is a greater number of holders in profit. We must be careful because sooner or later these people will sell!)

-Trade Intensity (this metric tells us how much trust the cryptocurrency has in the market and the number of times it has been used. Trade intensity indicates the number of people who are willing to buy the cryptocurrency: the higher this number, the more the trend is positive)

-Exchange Flows (this is a comparison between crypto and stablecoin. The decrease or increase in the issuance of stablecoins can make us think about what will happen in the immediate future. An increase in their issuance may indicate increases)

-Illiquidity (an increase in this factor generally indicates an uptrend)

-Number of Transactions (they do not have an objective and mathematical meaning, however an increase in transactions indicates an increase in demand and therefore in price)

-Deadlines of Futures, Resistances, Supports (the psychological factor is very important, not only for traders but also for holders who would like to make small transactions in or out)

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-Whale Alert Crypto (generally when millions of dollars are moved from a wallet to an exchange it is never a positive signal because these operations are done to sell in fiat or stablecoin)

-Whale Alert Stablecoin (this is the opposite case: usually when stablecoins are transferred to exchange, the reason is bullish)

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-Ads (in the week following a big announcement, for example listing on an exchange, staking system or partnership, the value increases)

-Funding (also in this case the big increase comes in the week in which the financing is announced)

-Mergers and acquisitions (as above; generally they are all bullish signals because acquisitions / mergers are an upgrade of the old system)

-Halving (we know that it has always been a bullish signal not only in terms of supply but also psychological)

 

 

Thank for reading

 

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