An Important factor analysts always watch out for while analyzing the market is identifying the market trend. The trend is described as the trader’s best friend meant to guide him in taking long-term positions in the market.
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The crypto market has maintained a downward trend all through the year 2022. With Bitcoin managing to hold above 15K level up to the last month of the year and forming a double bottom at this level under the weekly timeframe. Many analysts now suppose that the market might be gradually moving into a new trend.
Is this downward trend over? Are we to expect a new trend for Bitcoin and altcoins from this level? Can crypto traders not proceed to Buy and Trade Crypto 10 Index (B10)? This work has examined these pressing questions about the new trend every trader needs to watch out for in the market today.
Meaning of crypto trend
Crypto trend refers to the prevalent direction followed by the market over a given period. Often the market tends to move continuously in a particular direction due to the prevalent market conditions. This is known today as a market trend.
Types of crypto trends
There are two major trends in Crypto trading known as: Upward and downward trends.
- Upward trend: An upward trend is used to describe those periods when the market moves continuously in an upward direction. The upward is prevalent during the bullish season when prices keep going up, creating new highs in the market.
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- Downward trend: The downward trend refers to those periods when prices fall to lower levels continuously over time. This is the major characteristic of the bear season. The prices of various crypto assets usually crash, creating new lows in the market.
What is the emerging Crypto Trend every trader should watch out for today?
The emerging Crypto Trend every trader should watch out for today is the upward trend. The fact that Bitcoin has managed to stay above the 15K level up to the last month of the year and recently forming a double bottom at this level under the weekly timeframe has led many analysts to suppose that it is now rife to watch out for a change in the market trend, should the current level hold till month end.
While many traders are currently hoping for a change in market trend soon, it is still very necessary for traders to keep an eye on the forthcoming Fed’s session in December where the committee would be expected to slow down in hiking the interest rate for the US dollar which is the major fundamental factor that has caused the downward trend for Bitcoin and other Cryptocurrencies today.
Therefore a slowdown in the aggressive interest rate hike during the next session will serve as the major fundamental factor to back up the present suppositions that the market is currently on a new trend.
Added to this, Bitcoin needs to hold above this level till year end to convince investors that the market is currently on a new trend.
Why is it necessary to observe the crypto trend while trading?
The trend is like the general indicator that shows the trader the direction to follow while taking positions in the market. The fact that the market could move continuously in a given direction over a long time has made it very necessary for traders to always pay great attention to the market trend before taking any positions in the market today. Thus, neglecting the market trend could bring the trader unimaginable losses while trading.