To know the path of a cryptocurrency (such as Bitcoin, Ethereum, or any other currency), you must follow a set of factors and tools that help you understand the market movement and price trends. Here is how to analyze the path of a currency:
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1. Technical Analysis
Study using charts:
Use charts to analyze the price of the currency. The most common patterns include:
Trends: bullish, bearish, or sideways.
Support and Resistance: Important price levels that determine stopping or reversal points.
Technical indicators: such as:
Moving Averages.
RSI (Relative Strength Index).
MACD.
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2. Fundamental Analysis
Economic and political news:
Such as news related to new legislation, companies accepting the currency as a means of payment, or technical developments.
Technical developments:
Protocol updates and technical developments that may affect the price of the currency.
Supply & Demand:
If demand increases or supply decreases, this may lead to a price increase.
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3. Review price tracking platforms
CoinMarketCap or CoinGecko:
The most popular sites that display currency prices and trading volumes, with charts.
Trading platforms:
Such as Binance or other platforms that provide charts about currencies.
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4. View daily news related to cryptocurrencies
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