Bitcoinβs halving event reduces the reward for miners, which typically creates scarcity and can drive up prices. However, market sentiment, external economic factors, and demand also play a significant role in determining the price movement.
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Market cycles play a key role in shaping investment strategies. In a bull market, when prices are rising, long-term investors might focus on buying quality assets and holding them, expecting further growth. During a bear market, when prices are declining, strategies may shift toward more conservative approaches, like holding stablecoins or staking for passive income, or even capitalizing on discounted assets. The volatility in crypto markets makes these cycles more pronounced. Understanding market cycles helps investors manage risk, time their entries and exits more effectively, and avoid emotional decision-making based on short-term fluctuations.
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Market depth analysis shows the order bookβs buy and sell orders, revealing key support and resistance levels. Large buy orders near a support level suggest strong demand, while large sell orders near resistance indicate price ceilings. If the price breaks through these levels with strong volume, it signals a potential breakout. By observing how the order book evolves, traders can spot imbalances and predict price movements, helping them identify breakout points before a significant price change occurs.
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