In addition to the usual levels of support and resistance, convergence, divergence and other usual indicators, there are other markers in the cryptocurrency market that can be used to predict the direction of movement of the asset price. These are not obvious, but important marks that experienced traders of digital platforms pay attention to.
Cryptocurrencies are characterized by increased volatility and dependence on the news background. Due to hype and panic, strong fluctuations in the rates of digital coins occur. Therefore, relying only on the usual tools of a trader is not enough.
To better understand what the market is waiting for, pay attention to such points.
Growth of search queries on Google
It is convenient to track this indicator over time using Google Ads or Google Trends services. If you notice that the number of requests for “how to buy cryptocurrency” has increased several times, this is a sure sign that crowds of hamsters will soon rush to the exchanges and start buying altcoins on highs.
Then, of course, they will be trimmed, large investors will take profits and everything will again move in the usual circle.
Image © Denis Borisov #cryptasutra
General balance of cryptocurrency exchanges
Most large traders store their “working” assets in cold storage of the top twenty crypto exchanges coinmarketcap.
If you notice that the balances of the platforms have dropped, it means that the whales have withdrawn money for long-term storage and you should not expect a noticeable exchange rate drawdown. And vice versa: bearish pressure is almost always preceded by a large replenishment of stocks on the exchanges.
Interest of institutions and large corporations
If government funds invest in cryptocurrencies, this always causes a domino effect and the rate begins to grow by leaps and bounds. The news that pension funds were allowed to invest part of their assets in Bitcoin and they are using this permission suggests that the rate is unlikely to drop below the purchase price.
The same rule applies to large companies and hedge funds. Their activities are always public and they do not hide the purpose of their investments. If you find out that some corporation or large investor is going to invest billion in Bitcoin, you can be sure that they know what they are doing to make a hefty profit.
Regulatory behavior
If government officials, opponents cryptocurrencies:
- suddenly change their rhetoric and in their speeches admit the possibility of recognizing cryptocurrencies.
- give instructions to the financial regulators of their countries to bring order to the taxation of transactions with digital assets.
- begin to look closely at Bitcoin as an alternative means value storage.
These are markers that they are ready to accept the inevitable, and, therefore, strong pressure on the crypto market from the fiscal authorities should not yet be expected. This means that the bull market is not yet threatened by legislation. This is especially true for regulators in China, Japan and Japan. USA.
Keep your nose to the wind, ears and eyes wide open. Read our news to always stay up to date.
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