1-20: General Factors Influencing Price
1
Supply and demand determine the price of any cryptocurrency.
2
Bitcoin has a fixed limit of 21 million coins, which influences its scarcity.
3
Altcoins without a maximum supply limit may suffer more from inflation.
4
Bitcoin's halving (reduction of miner rewards every 4 years) historically precedes major rises.
5
Macroeconomic events, such as financial crises, can boost or crash cryptos.
6
Regulatory changes in major markets drastically affect prices.
7
Investor sentiment (fear or euphoria) is one of the biggest drivers of volatility.
8
Market manipulation, such as pump and dump, happens frequently in smaller cryptos.
9
Large investors (whales) can cause significant fluctuations by moving assets.
10
Partnership announcements and institutional adoption often elevate prices.
11
Trading volume influences price stability.
12
Periods of low liquidity lead to more drastic price variations.
13
High market cap coins tend to be less volatile.
14
New coins with low market cap are more prone to large fluctuations.
15
Fake news can quickly influence prices before being debunked.
16
The growing use of stablecoins impacts the liquidity of the crypto market.
17
Bitcoin's dominance over the market (Bitcoin Dominance) can indicate bull or bear cycles for altcoins.
18
Forks (splits in the blockchain) can generate uncertainty and volatility.
19
Geopolitical events, such as sanctions or mining bans, affect market confidence.
20
Hacker attacks and security breaches quickly drive down the prices of affected cryptocurrencies.
21-40: Historical Patterns and Seasonality
21
Bitcoin has gone through multiple bull cycles followed by strong corrections.
22
The market generally has a bullish period after each Bitcoin halving.
23
The months of September and October tend to be historically negative for cryptos.
24
January and February often bring a recovery after year-end declines.
25
"Altcoin season" occurs when altcoins surpass Bitcoin's growth.
26
Bitcoin usually rises first in a bull cycle, followed by altcoins.
27
Extreme fear in the market often precedes bullish reversals.
28
Extreme greed is an indicator that the market may be close to a correction.
29
The fear and greed index helps predict trends.
30
The crypto market generally declines during global economic recessions.
31
Large miner sell-offs can pressure prices downward.
32
Litecoin halvings and other proof-of-work cryptos also impact prices.
33
Adoption by large companies usually leads to long-term valuations.
34
Cryptocurrencies linked to sectors like DeFi or AI can skyrocket as the sector grows.
35
Stocks of the largest exchanges influence the crypto market as a whole.
36
Periods of strong rises usually end with a major crash.
37
Bitcoin's dominance dropped from over 90% to less than 50% as altcoins grew.
38
Meme coins like Dogecoin and Shiba Inu had spikes followed by massive drops.
39
Temporary hypes like ICOs in 2017 and NFTs in 2021 caused spikes followed by corrections.
40
The 'bubble and burst' pattern repeats at different times in the crypto market.
41-60: Technical Indicators and Trading Strategies
41
50 and 200-day moving averages are used to identify long-term trends.
42
The crossing of the 50-day moving average over the 200-day is called the 'Golden Cross' and signals a rise.
43
The inverse crossover is called the 'Death Cross' and signals a decline.
44
Bollinger Bands help identify overbought and oversold moments.
45
The relative strength index (RSI) measures the strength of price movements.
46
An RSI above 70 suggests that an asset may be overbought.
47
An RSI below 30 suggests that an asset may be oversold.
48
Trading volume confirms the strength of a bullish or bearish trend.
49
Divergences in RSI can indicate trend reversals.
50
The 'Head and Shoulders' pattern usually precedes declines.
51
The 'W' pattern can indicate bearish to bullish reversals.
52
Support and resistance are basic concepts for predicting reversal zones.
53
Traders use Fibonacci to identify support and resistance targets.
54
On-Balance Volume (OBV) helps measure the strength of a trend.
55
Ascending and descending triangles indicate trend continuation or reversal.
56
The MACD (Moving Average Convergence Divergence) shows momentum changes.
57
Dow Theory helps understand market cycles.
58
The risk/reward ratio is essential for any trade.
59
Stop-losses prevent excessive losses in volatile trades.
60
No indicator is 100% accurate; combining several improves analysis.
61-80: Market Psychology
61
The 'FOMO' effect (Fear of Missing Out) causes investors to buy at the top.
62
"HODL" originated as a typo and became an investment philosophy.
63
"Whales" move the market by selling or buying large quantities.
64
Extreme fear can be a good time to buy.
65
Exaggerated negative news can temporarily drive down prices.
66
Confirmation bias causes investors to ignore danger signals.
67
The cycle of emotions in the market follows repetitive patterns.
68
Volume spikes can indicate market manipulation.
69
Pump and dump is common in low liquidity coins.
70
The Elon Musk effect has already boosted several cryptos.
71
The illusion of easy gains causes many traders to lose money.
72
The market always seeks balance between supply and demand.
73
Many investors buy at the top and sell at the bottom.
74
Movements of large funds (ETFs, institutional) influence prices.
75
Events like 'China banning Bitcoin' have impacted the market several times.
76
Adoption narratives drive waves of optimism.
77
Emotions affect the price as much as fundamentals.
78
Many buy for hype without understanding the technology.
79
Volume on decentralized exchanges (DEX) can indicate a trend change.
80
Most day traders lose money due to high volatility.
81-100: Technology and Security
81
Smart contracts influence the utility of cryptocurrencies.
82
Hackers can drive down prices by attacking DeFi platforms.
83
Hard forks often create uncertainty.
84
Adoption by governments can boost a cryptocurrency.
85
Mining influences the circulating supply.
86
Token burning reduces supply and can elevate prices.
87
Congested networks affect fees and transaction volume.
88
PoS-based cryptos can generate passive income.
89
Staking reduces supply in the market, influencing price.
90
Ethereum 2.0 changed the supply and demand dynamics.
91
The Lightning Network boosts micropayments on Bitcoin.
92
Stablecoin regulation can change market liquidity.
93
Adoption in real payments increases the value of cryptocurrencies.
94
The security of blockchains impacts confidence in the asset.
95
DeFi protocols create new pricing methods.
96
Interoperability between blockchains can increase adoption.
97
Sybil attacks and 51% attacks are risks for smaller blockchains.
98
Bitcoin continues to be the store of value in the crypto market.
99
Decentralization protects against censorship.
100
The crypto market is still evolving and will continue to change rapidly.
