finances

How to Predict Crypto Prices?

Contributor

Cryptocurrency is the most profitable field for investment. Since this market is very young, it is especially sensitive to different factors, especially related to the news background and the market trends. For example, when a large crypto platform faces troubles and terminates withdrawals, it may cause funds outflow (like it happened with Binance in 2022); or when a large platform collapses (like it happened with the FTX exchange in November 2022). Also, crypto rates always follow the market leaders. For example, when the BTC rate drops, all other assets with smaller capitalization lose value too. Large-cap crypto assets determine the market trend. There are many other factors affecting crypto prices:

  • the overall situation in the global economy, inflation;
  • investors’ sentiment;
  • the technology of every specific coin;
  • and other factors.

How to Predict Crypto Market Price?

Crypto price predictions play a key role in investment and trading. However, it is almost impossible to accurately forecast an asset’s future price – too many factors affect it; different unpredictable situations can appear, pushing prices up or pulling them down.

To get an approximate price forecast, investors conduct the following types of analysis:

  • Technical research includes the analysis of historical crypto prices, patterns, charts, shapes of candlesticks, etc. Based on tech analysis, it is possible to see how an asset behaves in different situations and market conditions and, based on this information, to forecast the approximate future price.
  • Fundamental analysis covers a wider range of factors that may influence the rate. They are connected with external events – wars, political decisions, inflation, etc.

There is also quantitative research, evolving the data from the previous types of research and making calculations based on them. In addition to doing your own research, you may check out Internet algorithms that calculate crypto prices automatically. However, such research cannot be 100% reliable. A better option is to analyze on your own.

To check crypto prices, welcome to the WhiteBIT crypto trading platform.