How to recognize bulls and bear trends in crypto currency
The world of crypto currency is known for its volatility, unpredictability and rapid growth. Trends are key and bear trends. In this article and how to effectively apply them.
Understanding bull trends
The price of the CRIPTO currency increases over time, indicating that more customers enter the market than sellers. This may be due to different factors such as:
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- Positive feelings : positive news or project events can create hype and increase the price.
Identifying bull trends
To identify the bull trend in the crypto currency, seek:
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- New partnerships and collaboration :
- Positive market feelings : a great volume of trading on social media platforms such as Twitter and Reddit often indicate a positive trend.
Identifying bear trends
The price of the CRIPTO currency decreases over time, indicating that more sellers enter the market than customers. This may be due to different factors such as:
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- Negative news or events : negative news or project events can create fear and sell pressure.
Identifying bear trends
To identify bear trend in cryptocurrency currency, seek:
- Volume reduction : The decline in trading volumes indicates a reduction in interest and adoption.
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- negative market
: low trading volume on social media platforms such as Twitter and Reddit often signals a negative trend.
Types of indicators that traders use
Traders use different indicators that they give the strength and direction of trends in cryptocurrency markets. Some commonly include:
- Relative strength index (RSI) :
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- Support and resistance levels : Identifying the key level of support and resistance based on historical data and moods on the market can help traders predict prices.
How effectively apply indicators
The following:
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