Understanding Crypto Movements Through Market Psychology
General description
Hello friends in the Project Hope community, I will be making another post related to financial management strategies. Our focus is financial management in a sustainable manner, meaning that the wealth owned has more value in the future. That strategy is what we will discuss in this post, hopefully this post will become a reference for friends in the Project Hope community to make financial arrangements for their wealth.
Market psychology must be the most basic information to understand so that financial management expectations that can grow in the future can be realized. Understanding market conditions, besides being able to provide complete information about market developments, can also provide information about the real condition of a company. The existence of the market can also be used as basic information to draw conclusions about public trust in a business entity.
The market has an important role to ensure people's purchasing power through the law of supply and demand for an item or service. In basic logic, every time there is an increase in demand for goods, there tends to be an increase in the price of the goods themselves. Vice versa if there is a decrease in demand for goods, then the price of a type of product tends to decrease. Although in another perspective, the market has its own system to determine the balance of market prices; namely through an agreement between the seller and the buyer.
That is what is meant by market movement trends. The picture above is an illustration of understanding the conventional market. However, this condition also applies to understanding the crypto market, which is one of the instruments for investing in the current digitalization era. This basic understanding can be used as initial information to ensure your investment decision. So that your decision to invest does not fall into the "buy a cat in a sack" category. This means that you really understand the conditions of the type of crypto you will invest in.
Crypto Movement Trands
There are many methods to see the movement of crypto, one of which is to understand the trends in the movement of the type of crypto itself. The instrument that is often used in understanding crypto movements is crypto price movement charts. These charts display trends in crypto price movements in seconds, minutes, hours, monthly and up to annual timeframes. Of the many types of crypto, there are certain times for the crypto to return to its original price, both at the highest price and at the lowest price.
Like the graph of crypto price movements above, for this type of crypto there tends to be a balanced price movement. May 2021 price increases. The price increase was repeated in mid-November until the beginning of December 2021. While the peak of the decline occurred at the end of January 2022. While in early February until the time this post was made, there was a trend of price increases.
Based on the info from the graph, the type of crypto that is conveyed in the graph will increase again to its highest price at the end of April or the middle of May 2022. The information above is an overview of the types of crypto assets that occur in a balanced price movement. Trands movement can be illustrated with a monthly count. If someone wants to invest in crypto assets of that type of crypto. So the investment planning must be in a long period of time, namely within a period of 5 or 6 months.
Well, these conditions are in the same direction and in tune with crypto price movements in the market based on market psychological conditions. The law of demand and supply applies in this case, namely at the beginning of the year many crypto users sell their crypto assets to the crypto exchange market, and they will buy them back in June to mid-August. While the sale of crypto assets will occur back to the second stage which is the range in November. While the buyback for this second phase will occur in January.
Based on the graph; For the Ethereum crypto type, massive price movements occur twice a year.
Greetings @munawir91, definitely the law of supply and demand is who defines the price of a product whatever its nature, in the cryptocurrency market is handled the same way except that other indicators that can make an asset rise or fall in value intervene.
Ok @carlir, thanks for the comments, I hope with you.
Hello @munawir91
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Greetings @munawir91 in a key topic for any user who wants to start in the crypto world, because as is well known the emotion of the market and investor psychology are crucial to capitalize on this world that moves through a direct relationship between selling pressure and buying pressure, which is nothing more than the degree of interest in a particular asset.
Valuable delivery
Thank you @madridbg
Dear @munawir91
I found few minutes to go through your publication. solid read :)
I must admit, that content related to investing and trading psychology are recently one of my favourite ones. Upvote on the way.
Have a great sunday ahead :)
Yours, Piotr
Thank you for your feedback and evaluation of this post.
Note: Always use the tag #fbcrypto to quickly access
Include other tags such as club5050 tags and your country tag.
Thank you @reddileep, for being willing to curate it. And thanks also to @steemcurator05 who has provided input about the use of tags, in the next post I will improve the use of tags.