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The cryptocurrency market has been relatively stable over the past 24 hours, with Bitcoin settling around $99,973.4, down slightly by 1.30%.
Bitcoin (BTC):
Bitcoin is currently trading at $101,317, up 1.16% in the past 24 hours. The coin is expected to face price challenges in the coming weeks, especially after reaching an all-time high of $103,679 five days ago.
Ethereum (ETH):
Ethereum has been relatively stable, with minor price movements. Technical analysis is showing positive signs, suggesting that the uptrend is likely to continue.
Ripple (XRP):
Ripple has seen a significant increase in its value recently, rising by 4.01% over the past week, 230.13% over the past month, and 284.00% over the past year.
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Other cryptocurrencies:
Small cryptocurrencies saw one of their worst declines in 2024, indicating high volatility in the market.
Forecast for the next 24 hours:
Given the current analysis, the cryptocurrency market is expected to remain relatively stable, with the possibility of minor fluctuations. Investors are advised to follow global news and developments that may affect the market, and make informed investment decisions accordingly.
Mid-month analysis:
This stability is expected to continue through December 16-17, 2024, with the possibility of minor fluctuations due to global economic and political developments. For example, Binance announced the launch of the Vana (VANA) project via Launchpool, with trading starting on December 16, 2024.
Additionally, the Consumer Price Index (CPI) data released on December 12, 2024 showed a year-over-year increase of 2.7%, which led to a significant surge in the cryptocurrency market, with most coins achieving daily gains of more than 10%.
It is worth noting that the number of daily active users of cryptocurrencies worldwide reached a record high of 18.7 million in December 2024, indicating an increasing interest and adoption of these digital assets.
Given these developments, investors are advised to follow global news and developments that may affect the market, and make informed investment decisions accordingly.
note:
Bitcoin price predictions show variations among analysts, with some predicting the price to rise to $120,000 by December 31, 2024, while others expect it to fall. Therefore, it is always advisable to conduct independent research and consult financial experts before making investment decisions.
Reasons for the decline of digital currencies:
1. Government legislation and oversight:
• Government interventions are one of the main reasons for the decline of digital currencies, such as imposing taxes, banning trading, or tightening the restrictions on companies operating in this field.
2. Rising interest rates:
• As interest rates rise, investors are turning to traditional assets such as bonds instead of cryptocurrencies which are considered high-risk investments.
3. Intensive speculation:
• The volatile nature of the market prompts investors to sell aggressively at the slightest fluctuation, leading to lower prices.
4. Negative news:
• The spread of negative news, such as fraud or hacking of trading platforms, leads to a decline in investor confidence.
5. Bitcoin Volatility:
• Bitcoin, as the largest cryptocurrency, has a significant impact on the market. Any significant drop in its value drags other currencies down.
6. Low liquidity:
• In cases of mass selling, liquidity is affected, causing prices to fall faster.
Height forecast:
1. Adoption of major institutions:
• The entry of major companies such as PayPal and MasterCard into the field of digital currencies increases the demand for them.
2. Technology and infrastructure:
• Improving networks and protocols (such as upgrading Ethereum to Ethereum 2.0) enhances the efficiency of cryptocurrencies, increasing their value.
3. Increased demand from new investors:
• As people become more aware of the benefits of cryptocurrencies, the number of investors increases, leading to higher prices.
4. Global economy:
• Economic crises and inflation make digital currencies an attractive option as a safe haven alternative to traditional currencies.
5. Reduce supply:
• Decreased supply due to burning or bounty programs can drive prices higher.
6. Major events:
• Such as the “Bitcoin halving,” which reduces the mining reward, usually leads to a rise in the price of Bitcoin, and then the rest of the market.
Trader Strategy:
It is preferable to monitor global economic news, such as inflation reports or central bank statements, and rely on technical analysis to determine appropriate entry and exit points.
Factors in between:
One of the reasons for currency price fluctuations is the daily speculator, who believes, based on market estimates and general trading behavior, that daily speculators constitute about 60-70% of the daily trading volume in the digital currency market, while long-term investors constitute the remaining percentage (30-40%).
Of course, this is a huge number, as they move the market on a daily basis with the total trading volume, in order to benefit from selling at the tops and buying at the bottom, and exit with profitable and satisfactory profits.
Of course, the fluctuation occurs based on the daily number of speculators in the currency, and for this reason some people believe that the currency will decline, so they sell at a loss at the bottoms and buy at a loss at the tops.
advice:
If you are an investor, do not care about the daily price, whether it falls or rises, whether your target is a period or a price. If you reach your target, execute it.
Buying and selling times for digital currencies:
Buying and selling digital currencies depends on two options or decisions that you must determine as a trader in the digital currency market.
The first option is to determine your style between a fast speculator or a long-term investor.
The second option is to set your goals in price, duration and currency.
If you are a day trader:
Select the currency and the candle. It is preferable that it be no less than 5 minutes and no more than 15 minutes.
Look at the tops and bottoms of the currency.
Set your buying goals before the bottoms by no more than 15% from the bottom.
Then set the selling target from selling at the peaks by no less than 15% of the peak.
If you are a long-term investor:
Conduct a special research on the currency and its project, diversify the portfolio with more than one currency with a good project, and determine the time in which you will sell, which should not be less than 5 years if the currency has huge projects.
Finally: This is not financial advice and you should do your own research.
Always remember that you should never have an emotional relationship with anyone.
In conclusion, look for a currency project and keep in mind that the currency is halal. Beware of currencies that support forbidden projects, as they will definitely destroy your money.
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Best regards
May the peace, mercy, and blessings of God be upon you.
