Is it Possible to Predict the Crypto Markets?

The crypto market is so volatile, so unpredictable that it’s become the stuff of legend. Traders are constantly trying to find ways to predict where the price will go next. While some people call this “FUD” (fear, uncertainty, and doubt), there’s no denying that there does seem to be hype around certain coins which then corresponds with the price increase. The question is, can this be predicted?
The answer is yes…. kind of. While it’s not an exact science, there are patterns that emerge when the price of cryptocurrencies changes drastically. It could be due to hype, news stories ,or other unpredictable factors, but if you know what to look for, it certainly seems like there are signals that can indicate which way the wind blows in the crypto world.
On the other hand, not all of these signals are created equal. Some of them require an even deeper understanding of blockchain technology than you may have now, and others simply aren’t as reliable as they were a few months ago. As with any type of trading, it’s important to consider your level of expertise and risk tolerance before you dive in.
So, what are some of these signals that traders are watching?
Volume
For one, volume is always a key indicator when it comes to crypto trading. If a coin has a high volume and is being traded on many exchanges, it’s likely that there’s more interest in that coin and it will be more stable. Conversely, low-volume coins may be more volatile and easier to manipulate.
Social Media
The crypto world is full of rumours, and social media is a great way to gauge the sentiment around a particular coin. If people are talking about a coin a lot on Twitter or Reddit, it’s likely that there’s some kind of hype going on. If you’re able to understand these sentiments better than other traders, you’ll likely be ahead of the pack for all your BitQL trading activities.
Hackers and viruses…oh my!
If someone creates a virus or hack that targets a particular coin, it’s likely that there will be an increase in price due to fear surrounding the coin. For example, recently when the CoinHive hack occurred, the price of Monero went up by a significant amount even though it had nothing to do with this particular event.
Increased Investment
When a cryptocurrency experiences an influx in investment quantities it may be due to actual news or planned rumors. For example, when Coinbase announced that they were considering adding LTC to their platform, there was a significant increase in the price.
In contrast, when rumors that Google would be banning adverts for ICOs and cryptocurrencies spread through the internet, the price of bitcoin dropped as a result of this FUD.
There are many other signals you can look at to determine how the prices of various cryptos might change, but these are some of the most common ones. The next step is to consider which of these signals are relevant for your trading strategy, and then you can put that strategy into motion!
Conclusion
Certainly, while predicting the crypto markets is not an easy task, it is not impossible. Every trader or investor needs to understand the signals that influence the market and make their decisions accordingly. Understanding these patterns is a necessary part of any successful trading activity.
However, we cannot neglect the fact that we cannot know what will happen in the future and there might be many events and circumstances that no one could ever foresee which might lead to changes in our “perfect prediction”.