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Technical and Fundamental Analysis of Cryptocurrency

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With the explosion of cryptocurrency in 2020, which has propelled investors worldwide to key into it, it seems like a highly lucrative avenue; who wouldn’t want to get a slice of this highly beneficial cake?

Cryptocurrency trading, mining, staking, and investments provide a platform for literally anyone with interest to create and garner wealth that will stand the test of time. Indulging in the financial aspect of cryptocurrency might seem easy at face value, but a lot of people struggle with turning a profit. This is because a good number of people trade blindly without considering the trends and science of it.

Let’s be honest, like the stock market; the cryptocurrency market is incredibly volatile, and diverse factors can influence its charts. Hence, to help streamline your future cryptocurrency dealings to profits, this piece analyzes the technical and fundamental factors that make cryptocurrency.

A One-Stop Shop For All Things Crypto

First of all, to understand these factors, know when to trade, buy, hold or sell off cryptocurrency, you need the insights and guidance of a professional trading company with a wealth of experience. You need someone with foresight on the global market movement. You know; what and where it will move, when it moves, and the reasons behind this movement. You need a Freeekonomist.

Freeekonomist is a YouTube channel with the blueprint to all the cryptocurrency-related market trends. On this channel, you’ll be granted valuable information by Arut Nazaryan, founder of Bistox Exchange, that’ll help you turn your cryptocurrency losses into wealth.

Here are more things you’ll learn from joining this channel.

Nasdaq Composite

On the 9th of June, 2020, while the world was swept into panic as borders were shut, travel restrictions and curfews were imposed, and we were all under lockdown due to the Covid-19 pandemic, Nasdaq Composite reached an all-time high.

Due to what was and is still going on in the world, not many people noticed this shift. Unless you’re really engaged in the market's trading and analytics, you probably missed it too. Not to worry, it’s not like Nasdaq surpassed its absolute maximum in the history of its existence or anything; because that’s precisely what happened.

So why is this information important?

It’s important because despite all the fundamental factors that contradicted this rise from Covid-19 to unemployment data, the dwindling economy of leading countries, the unstable political aura, and the general financial situation of the entire world, it still happened. Hence, the reset button had been pushed, propelling us to a new reality.

This has changed the world’s development paradigm in the sense that while S&P and Nasdaq had their time in the sun as the leading markets, presently, the baton has been passed to high tech companies and assets, as well as Bitcoin.

As a novice or intermediate cryptocurrency trader, you might not know what to do with this piece of information, hence, the reason to join Freeekonomist. But before you trade, one major fact to remember as a credo concerning cryptocurrency is that contrary to what marketers might say, it is not a means to save, neither is it digital gold.

Cryptocurrency is one of the most speculative tools in the market, and one of the reasons it’s really popping off right now is that so much money has been invested in its market. Hence, the more speculative or fundamentally unsupported an asset is, the greater its volatility and consequently, the greater the profits or losses you can rake in.

USDX, DXY

Another factor that plays an important role in the market is the US dollar index (USDX, DXY). This is the index of the US dollar’s value as compared to other currencies.

Presently there’s a saturation of the dollar in the market. To keep the economy afloat, the Federal Reserve is printing tons of dollars and pumping them into the economy. Thus, in relation to other assets, the dollar is getting cheaper and cheaper. It’s even the cheapest against risky assets like Tesla or Bitcoin.

The EUR/USD chart as of 11th June 2020 revealed the growth of this pair. This was confirmed after the rebound from the global tanking, revealing that Euro will soar against the dollar.

Here’s what you need to know, and joining the Freeekonomist channel will keep you abreast with these trends. There are two expected outcomes with the DXY index, and both outcomes are headed for the ground.

The first goal was attaining 85-89 limits (where we are now) and then going up from this mark. If this happens, it’ll force the reserve to stop liquefying assets and printing dollars, thus altering the monetary policy and increasing refinancing rates, which is now 0.25%.

Also, due to the DXY index falling to the expected marks, Bitcoin has no other choice to grow. Hence, your hands need to be steady and on the pulse before this happens.

Market Capitalization

In cryptocurrency, market capitalization serves as an indicator that strongly relates to Bitcoin.

However, the charts that show market capitalization paint a technical picture that sometimes cannot be unlocked or viewed on a cryptocurrency chart. This is because these cryptocurrency charts can be oblivious to the minute movements in relation to currency dominance, and this is one of the indicators that are often triggered.

Hence, to rake in profits with cryptocurrency, a professional understanding of market capitalization is a necessity. Presently even as the picture depends on the dollar index, DXY, the dominance is up, creating room for growth alongside corrective movements.

Wrapping It Up

Socioeconomic factors primarily influence the trends in cryptocurrency. The bitcoin market is actually very fragile, and anything can happen. You could wake up tomorrow with news of the dissolution of one or more of the multiple cryptocurrencies on the market, so what happens to Bitcoin then?

Well, with the wealth of experience, expertise, and foresight on the cryptocurrency trends and chart movements, Freeekonomist can help you secure your investments, offers priceless information based on the indicators, and inform you on when to hold, buy, trade, or sell cryptocurrency. To access this bounty of knowledge, all you need to do is subscribe to the YouTube Channel at Freeekonomist.

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