Bitcoin was born with the proposal to be a decentralized currency, without banking institutions or governments controlling its distribution or intermediating the operations carried out. In the face of this, BTC has become an increasingly valued currency and ensuring many investors have tripled their income like never before.
But of course, even though there are several benefits around it, there are still a number of divergences that permeate this cryptocurrency, after all, how to analyze the rise and fall of Bitcoin charts? Will Bitcoin rise or fall? Besides having a good trading system, you need to know how to predict the Bitcoin price. Click here to get to know about the trading system.
Will Bitcoin rise or fall today?
If what you want is to know if Bitcoin will rise or fall, then you are in the right place.
Here we will present you 5 essential tips when it comes to calculating the Bitcoin price on the market – and more than that, measuring which ones will be next for the currency on the market.
Check out what you’ll learn today:
- What is Hashrate
- Whale movement
- Regulatory bodies and their relationship with the price of Bitcoin
- Derivative settlements;
- Interest rates in the Bitcoin market.
#1 – Hashrate: Security as a Pricing Parameter
In definition, Hashrate can be classified as a performance index that measures the computational power adopted to register cryptocurrencies in a given period.
This processing capacity indicates more security for investors, as efforts are made to increase crypto validations and records on the network. Basically, the higher your level, the more secure the network; in addition, the chances of an attack on the system are completely reduced – especially if we talk about attacks that compromise more than 51% of it.
How to know if Bitcoin will rise or fall?
The importance of high Hashrate levels directly impacts the price of Bitcoin, not to mention, of course, that it is an important way to monitor the drops or rises in the price of the currency – that is, whether Bitcoin will rise or fall.
Also remember that Bitcoin was created with the assumption that security must be maintained from the beginning, so the more secure the currency and the network it is on, the greater the chances of measuring its real market value.
#2 – Whales Movement: Key Indicator for Large Investors
To know if Bitcoin will rise (or fall), it is important to keep in mind another parameter, which is related to cryptocurrency movements, that is, the transactions of the asset to brokers, as well as the assets to the wallets.
Many people currently have carefully analyzed the actions of large investors within the market. Usually, investors who have balances of more than a thousand assets per network, can show that big moves are coming. You may be thinking: but how can this be negative for my pocket?
And the answer is very simple. Transactions that involve large-value operations for brokerage firms are considered possible sales intentions, that is, within the investment market, it is properly bad for those small investors.
There is also another scenario, as is the case with those large amounts that come out of brokerages. In view of this, the view of a portion of investors is that the big players (that is, the whales) may be transferring their coins to a safer place, waiting for that asset to appreciate in order to carry out this sale.
#3 – Impact of Regulatory Uncertainties
Far from the technical prospects of potential or data on big money transactions, one of the ways to gauge whether Bitcoin will rise or fall is through regulatory uncertainties that indicate both the direction of the market and the sentiment of its investors.
We know that BTC is not an asset regulated by banking institutions or governments, for this reason, many judicial bodies have created regulatory laws to bring more security and control during cryptocurrency trading.
Thus, many investors have considered positive the actions taken as a way of regulating, through tax rules, the prevention of crimes such as money laundering. But beyond good intentions, these bodies are not always adept at the innovations promoted by this type of technology.
Therefore, it is common to see constant drops in the price of Bitcoin, resulting from actions by governments themselves in relation to this asset.
The fewer restrictions on the use and distribution of these assets, the better the opportunities to increase the flow of capital, as well as the expansion of the market itself in the face of a rising purchasing force. So, keep in mind that the stricter the laws around Bitcoin are, the greater the chances of having negative impacts on the market, mainly leading to huge drop rates.
#4 – Settlement of Derivatives
In addition to the factors mentioned above to determine whether Bitcoin will rise or even fall, we also have the factors that are reflected within this market.
They, in turn, tell the trades that are made within the platforms – you can think of it like Bitcoin derivatives trading, or even trading involving futures contracts. Unlike the traditional market, it is worth noting that there is also another side of the market, which can present higher rates of gains as well as risks.
How to know if Bitcoin will rise or fall?
You can understand this as, when brokers provide their traders with a kind of loan that will make their results increase according to their positions – which is what we call leverage. As an example, suppose you have invested $ 1,000.00 in Bitcoins. As the currency rises – for example, 5% – your investment profits will reach $ 1,050.00.
However, let’s say that this same broker offers you a loan option so that you can profit up to 10 times the capital invested. However, to the same extent that it is possible to make money with this loan, if the Bitcoin price drops, it would result in a 5% loss on the amount ceded – in addition to having a damage of up to 50% on the entire capital. In a favorable market, many investors open long and leveraged positions, waiting for the Bitcoin price to rise.
But as not everything is flowers, this asset often tends to go to a position contrary to that expected, when this happens, the buying force of the currency is reduced, in addition to its indices resulting in faster and deeper drops.
#5 – Funding Rate
Do you have doubts whether the price of Bitcoin will rise or fall? So pay attention to this other factor that can directly impact the currency quote: we are talking about the Funding Rate.
As you have seen, nowadays it is very simple to operate using leverage within the market, that is, only requesting cash loans from brokers, as a way of increasing your position. But it is important to have an idea of one thing: for all money borrowed, there is a fee that is charged by these organizations.
There are many factors that directly impact Bitcoin’s ups and downs, that is, on its market price. Also, despite what many people believe, knowing whether Bitcoin will rise or fall is a task that must be performed through hard data, not mere speculation.
Therefore, it is important to be aware of several of these factors when selling or buying these assets, because only then will it be possible to premeditate the best path to take, in the face of market fluctuations.