Some factors that can help in the analysis of a cryptocurrency:
1️⃣ Historical Price — past behavior
Why it influences: Investors look at past patterns (support, resistance, trends). If Bitcoin has risen several times after falling 5%, many people expect it to happen again — this creates a "repetition cycle" and helps predict behavior.
2️⃣ Trading Volume — how much was bought and sold
High volume shows great interest — if the price rises with a lot of volume, it is a sign of strength (it may continue to rise).
If it rises with low volume, it is a weak signal (it may drop soon). Volume is like the "fuel" of the movement.
3️⃣ Volatility — how much the price varies in a short time
High volatility = unstable and risky market. When the price fluctuates a lot, investors become more cautious.
Low volatility = calm market, often before a big movement (explosion of rise or fall).
4️⃣ Technical Indicators — such as Moving Average, RSI, MACD
These are calculations based on price and volume, used to predict reversals and trends.
Example:
- High RSI = overbought market, chance of falling.
- Low RSI = oversold market, chance of rising.
- Moving Averages = show the overall trend. If they cross, they signal a change.
Many people use these indicators, so they end up creating a real effect because thousands of traders react at the same time.
5️⃣ External Events — news, regulations, and halving
News, new laws, political decisions, and scarcity events (like halving) change human behavior. For example:
- Halving decreases supply, usually generates a rise.
- Ban in a country drops the price.
- Institutional adoption (like approved ETF) makes it rise.
These variables are not technical; they are emotional and economic — but they directly affect supply and demand.
