In the cryptocurrency market there are many factors that affect its price. But especially when Bitcoin rises or falls, it often drags the market with it. So how to predict BTC price increase or decrease? The answer is very difficult!. But when you decide to invest in Bitcoin, you must learn and analyze the factors that affect the price of Bitcoin. Now let's go together Virtual Currency Blog (BTA) find out!
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Money is a flow that is always circulating and revolving around these 4 things: Real estate, stocks, gold, currency and some other things, such as electronic money. When real estate cannot bring much profit to investors anymore. Then the cash flow will switch to other investment models that bring more profits such as stocks, cryptocurrencies... When the money flows into cryptocurrencies, the market including Bitcoin will grow strongly. On the contrary, when the cash flow is withdrawn, the market will drop sharply and become gloomy.
So, If you can feel this flow then you can seize a good opportunity to invest. Today's topic we will only focus on the reasons for forecasting price increases and decreases Bitcoin price.
Bitcoin Price Impact Factors
Law of Supply and Demand
This is the main and most fundamental factor that affects the price of bitcoin. When there is too much demand to own bitcoin, BTC will automatically increase and vice versa. Remember that BTC supply is only 21 million coins.
Of course we won't dig too deep here, because this rule is related to other factors that we will list below.
Bitcoin News is one of the important factors that greatly affect BTC or any other coin. Thanks to the news, you can know what BTC is, what ecosystem, what problems it can help society, etc.
When the press system, media news thrives, there will be good and bad news that affect the increase or decrease in demand for ownership of BTC, thereby determining its price.
However, due to its importance, speculators use it as a vehicle FOMO for most new investors. So you'll always see the chorus, rising and falling before the news comes out or before you read about it. Because they are professional investors, they know the news very quickly, process it in advance, and make you unable to react.
Although it is a non-economic factor, it also significantly affects the price of BTC. The most recent example is when the stock market crashed because of the Sino-US trade war. That time Bitcoin is considered a safe “haven” and it has peaked at 13900$ only 2 months. Here we see money flowing from stocks to safer assets.
National Recognition of Bitcoin
BTC is recognized
When BTC is recognized as a means of payment in countries. Or BTC is considered a legal asset, now people will have easier access.
If a populous country like China uses Bitcoin as a payment method. At that time, the high demand for Bitcoin means that the price of Bitcoin will increase accordingly.
Or you see, When the US Securities and Exchange Commission (SEC) makes an announcement about BTC or an ETF for BTC, it affects its price….
BTC is banned
When the future trend is to accept Bitcoin. But currently it is still facing many barriers. Some countries still have a ban on this cryptocurrency. If a country invests in crypto as much as the US enacts a ban on Bitcoin. Then there will be a negative impact on this asset.
In the writing: What is Bitcoin? We have mentioned that BTC has no control by any bank or organization, thereby deciding on decentralization, which has been a decisive factor for the development of BTC since its inception.
When you transact, there will be 1 TXID (Transaction ID) confirming that transaction, and miners are the ones who do it, when too many transactions appear it will require a system upgrade. Therefore, the developers will meet together, discuss, etc. There will also be controversies,… Unresolved leads to waves. Hardfork, Softfork
This is also a factor, but it doesn't matter, and it's difficult to predict which /token can replace BTC so that's all we need to know.
BTC is manipulated or made the price
Manipulation by pump dump BTC
Some big players will manipulate the BTC price in their favor. These people are the holders of a large amount of BTC aka “sharks”, “whales”. For example, they bought BTC bottom price. Their next job is to make the price of BTC go up and then they sell. They can also push the price down to get cheap Bitcoins.
Manipulating by news
As mentioned in the news section, there will be a group of people who spread false news to benefit themselves. They will give good news to the market to be optimistic and increase the value of BTC. Then they just dump their money into the market. In order to buy Bitcoin with low price, they will release bad news to reduce the value of BTC.
These are all important factors that Virtual Currency Blog (BTA) I want you to know so that each individual will form his or her own judgment. Don't believe any father or son is absolute! Based on personal experience and judgment, make the best orders.
However, to understand all of the issues, it takes a real experience to understand, which is called an expensive paid course that everyone has to go through. But I hope people don't lose too much.
After this lesson 7, perhaps we have basically completed the phase 1 course and can already trade. If you are lazy to analyze, you can follow BTA's free signal sharing channel: https://t.me/joinchat/AAAAAFQZJOfE3VOdX7ZqYA
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