#BNBATH880 What does "Currency Analysis" mean? (1)
When you request "Currency Analysis", we can follow several types of analysis:
1. Technical Analysis
Focuses on studying price patterns through charts, using tools such as support and resistance levels, MACD, RSI, and others (Investopedia, Wikipedia).
2. Fundamental Analysis
Extends to global economic and financial factors, such as inflation, monetary policy, and regulatory developments (Federal Reserve Bank of New York, Érudit, Investopedia, Wikipedia).
For example, an analysis conducted by the Federal Reserve of New York found that Bitcoin is not directly affected by sudden economic news (Monetary and macroeconomic news) (Federal Reserve Bank of New York).
Another study using the ARDL model showed that certain changes, such as declining inflation, have specific effects on the price of Bitcoin in the long term and short term (Érudit).
3. On-Chain Indicators
Based on analyzing data recorded directly on the blockchain:
Number of active and new addresses (New & Active Wallets)
Whale movements
Inflows and outflows to and from exchanges (Exchange inflows/outflows)
Activity of dormant wallets
All of these provide signals about the absence or concentration of liquidity, the desire to buy or sell, or changes in the overall market sentiment (Investopedia).
