$BTC and the risks of ignoring different analysis periods
Not considering simultaneously, for example, the variation of the last 24 hours and the variation since the beginning of the day can lead to distorted interpretations of the market reality and compromise strategic decisions.
Here are some of the main dangers:
- False perception of trend -
If an asset shows gains in the last 24 hours, but is down since the beginning of the day, it may indicate that the upward movement was temporary and that a correction is underway. Ignoring this contrast may lead investors to mistakenly believe that the appreciation will continue, when in fact the trend is changing.
- Decisions based on incomplete data -
Focusing only on the daily variation without looking at the broader context can result in hasty decisions. For example, an asset may be negative since the beginning of the day, but still positive over the 24-hour period, suggesting that the day's volatility is part of a temporary correction and not a sustained downward trend.
- Risk of inappropriate entries and exits -
Traders and investors who make buy or sell operations without considering both periods may enter or exit the market at the wrong time. If someone sells an asset just because it is negative on the day, without realizing that it has maintained an appreciation over the last 24 hours, they may miss medium-term profit opportunities.
- Impact of external events -
Factors such as economic announcements or unexpected news can cause intraday fluctuations that, in isolation, seem significant, but may dissipate over a longer period. Without this broad view, investors may be led into panic or unfounded euphoria.
Therefore, to avoid misinterpretations and minimize risks, it is essential to analyze both periods with great attention. This way, decision-making will be more informed, strategic, and aligned with the true dynamics of the market.
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