How to identify tendencies upwards and repeat in cryptomena
Cryptocurrencies have gained traction in recent years and with the rise of new exchanges, wallets and investment vehicles it is easier for everyone to participate. However, navigation of the world of cryptocurrency can be stunning, especially as regards identification of tendencies and answers upwards. In this article, we will divide how to identify these two key market models that can help you make informed investment decisions.
What are the bull and bear trends?
Before we immerse us in detail about identifying vertical and bear tendencies, we define what they mean:
* Relizist tendency : Bullish trend is an extended period of ascending momentum at the price of cryptocurrency. During this period, prices tend to move and investors are recommended to buy multiple coins. Relzist tendencies often occur when investors believe that the market will continue to increase, which is due to an increase in demand and limited demand.
* Bookhine
: Bear tendency is an extended period of moment in the price of the cryptocurrency. During this period, prices tend to descend and investors are invited to sell more coins. Library tendencies often occur when investors believe that the market will continue to decrease and follow the demand for excessive or reduce demand.
Identification of upward trends
So how can you identify upwards in cryptocurrencies? Here are several key indicators:
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- Increase volume : When the market moves upwards, more investors tend to buy coins that can be considered a positive app indicator.
- Support levels : When the price is interrupted above the key level of support, it may indicate that buyers are gaining dynamics and looking for further price increases.
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Identification of described trends
On the contrary, the identification of recurrent tendencies requires a different series of indicators:
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- Resistance level : When the price breaks below the key resistance level, it may indicate that sellers are gaining dynamics and looking for further price reductions.
- Increasing market volatility
: Increasing market volatility is often a sign of greater uncertainty among investors, which may indicate a bear tendency.
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Tools to help you identify upward tendencies and repeat
Use the following tools to understand complex data available in cryptomena markets:
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Conclusion
Identification of ascending tendencies and answers in cryptocurrency requires a combination of technical analysis, market research and critical thinking.