How to Predict Bitcoin Pricing
The last article talked about how difficult estimating Bitcoin pricing is.
Now, this article explains how to predict that pricing.
What kind of information and data do investors, exchange, or article writers of Cryptocurrency usually analyze?
The 2 Analysing Methods
First of all, let’s go over how to predict financial products, other than Bitcoin.
There are 2 main ways to analyze.
One is the Technical Analysis, and the other is the Fundamental Analysis.
Technical Analysis
The technical analysis uses the (line) chart consisted of the time scale (x-axis), and price scale (y-axis), to predict future changes in price.
Facts such as where, when, and how much something sold for come into effect.
Fundamental Analysis
The fundamental analysis uses the current market price, in order to predict future prices.
When a product has potential, but market pricing is low, one could estimate that the price shall rise. This analysis sees market needs affect the market price.
Using Fundamental Analysis to Predict Market Price
When predicting Bitcoin pricing, fundamental analysis is often used.
A popular topic is Hard Fork and Soft Fork, an upgrade in the Bitcoin system.
We will leave the technical terms for another article.
Make things simple and just know that, this increases the performance Bitcoin itself.
Do Hard Fork and Soft Fork Effect the Market Price?
Do hard fork and soft fork effect the market price?
If there is an increase in the performance of Bitcoin, it is definite that the value increases as well.
In the past, when a hard fork or soft fork was implemented, the price went up.
Strictly speaking, prices rise and fall before and after the event. Therefore in terms of “Investment”, timing is key.
Finding Reliable Information
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Written by Kenji Ito
