When will the course correction cryptocurrency
The market of digital currency has a high volatility, due to his youth and instability. In such circumstances, selection of the correct time to enter the market is an important component of success.
It should be noted that until now, there have now been three major adjustments, each of which had a significant impact on the overall market situation. They were:
- Mid-June to mid – July. Summer is traditionally the whole business activity declines, and many traders preferred to transform a portion of their digital assets in the "Fiat" money, which led to oversupply in the market and the gradual decline in the value of cryptocurrencies.
- The first two weeks of September. The drop in prices by 1.5-2.5 times the popup was triggered by the news about the ban on the holding of the ICO in China. Within two weeks, the players shifted to new trading platforms, after which the price dynamics have acquired a positive direction.
- With the last week of December to the present. Here the reasons were comprehensive and the Christmas holidays, and the high price of tokens limiting investor activity, and the inability of the exchanges to cope with the influx of customers that had restricted the registration of new traders.
In General it can be said that the exchange rate of bitcoin for the time elapsed since the first adjustment, has increased, so investors come out ahead even if the number of negative price changes.
To determine the ideal time to invest in cryptocurrency, you need to calculate the point of completion of the winter correction. This requires the SMI indicator learn about the imposition of which on selected currenciespair possible based on the material "How to trade bitcoins the strategy of earnings on cryptocurrency".
Correction in turn divided by duration into two types:
- Short adjustment provides that indicator during the trading day makes three movements, of which two facing down and one up between them.
- Protracted adjustment involves a large amplitudes with five movements, three of which are directed in the negative.
In the latter case, the most optimal solution is to buy cryptocurrencies at the time the third pit. In this case, it is guaranteed there will be a growth of the value of the asset.
In some cases, the adjustments are very minor, and the daily chart does not give a full picture of what is happening. In such a situation it is necessary to refer to the detailed 4-hour chart, which enables you to trace the UPS and downs of the value of the coins.
The use of the Fibonacci retracement
To calculate the specific turning point in the dynamics of prices used Fibonacci levels. This principle of finanalysis it is advisable to consider the specific cryptocurrency. On the schedule you want to set the mesh between the maximum value and the largest minimum value during the adjustment.
When overlaying the grid is determined by a few main levels (0,618; 0,5; 0,382;0,236). For each of them the probability of events occurring is decaying on the line. At the top illustrates the fact that lowering prices below a specified level. At the next level of achievement threshold was not, but the probability of this outcome is assessed as high. Another level below the likelihood of achieving the specified prices are defined as average, and the achievement of an even lower level as it is unlikely.
In fact, the level nastupeniya adjustments special significance to the situation does not, and when you make a purchase on the at least a third of the pit or close to it, the investor is guaranteed to receive income from future growth value.
In General, analysts say that the long search for the adjustment is undesirable as it significantly increased risks of purchase cryptocurrency at a maximum price values.
The above calculations belong to the category of technical analysis, and in practice, given the objectivity of the data at the level of 50%. To achieve more accurate measures of determining transition points, it is advisable to use techniques of fundamental analysis. In particular, it is much more actively used the news surrounding the Fund, the benefit of the cryptocurrency market has a significant dependence on outreach stuffing.
It can be stated that with the advent of the first positive news the market will start a sequential correction of the prices towards increase. The first of these should be information about the resumption of the main trading sites register new users. More investors should invest in cryptocurrencies significant capital to stimulate sales and increase the demand for digital assets.
It is also necessary to track the news of the cryptocurrency 2018, the year, and each of the tokens individually. Any positive changes, for example, support a new market or official recognition from the authorities is able to move the price up.
If to use simultaneously all the recommendations for the analysis, with a high probability approaching 100%, to determine the timing of the completion of correction and the optimum time to purchase cryptocurrency.