Crypto Academy Week 10 - Homework Post for @stream4u

in hive-108451 •  last year 

Hello everyone welcome to another homework and my final homework for this week given by @stream4u our able professor who lectured about Price forecasting so if you want to check it out click [here] anyway let's get straight to business.

What Is Price Forecasting?

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Source
When you are talking about price forecasting it means price forecasting of crypto currency to know the price in the nearest future, when predicting prices of cryptocurrencies many factors has to be met so that you will know the trend(uptrend/downtrend) to know the best time to buy or sell.

When someone forecasting price, a lot of things need to be considered like fundamentals and they are checked by checking through the performance of the cryptocurrency company.

2). Discuss on why Price Forecasting is needed?

It is very important because it allows traders to take advantage of the cryptocurrency market to increase their chances of getting profit that means it doesn't matter if the market is going to be bearish because if you can forecast price you will benefit from it.

I will give an example imagine you know how to you can do technical analysis on crypto charts, you will know where to indicate support and resistance so that you can buy in support and take profit in resistance

What Methods are best you feel for Price Prediction/Forecasting.

There are three methods that are important in price prediction and they are Technical analysis, fundamental analysis and sentimental analysis. The Technical and fundamental are the important ones but i will explain the three any way.

Technical Analysis: Technical analysis can be define as a very important tool that can be used to forecast the price of crypto through the reading of charts by analyzing the resistance and support of a crypto.

Fundamental Analysis: Fundamental analysis is another very important tool in price forecasting because when you this method you just don't just visit past charts and compare them with the present but you go deep like reading the white paper of that project and knowing what that project contribute to the community and also check the team of that project whether they have a long vision for that project.

Sentimental Analysis: This Analysis is the type of analysis that get people rekt most of the time why because they are assumptions or make believe just to get people to buy the crypto, and of you are a newbie and you no nothing about crypto you will just buy.

Take any Crypto Asset Chart graph and explain how to do Price Forecasting? OR Take any Crypto Assets Chart graph & as per its current price tell us what will be its future price for next 1 week or 1 month? You can predict for any direction up or down but explain it properly on what basis you have predicted the price.

I will be showing you guys patterns on how to forecast price of a crypto through it's charts and the name of the coin is bitcoin so it's BTC/usdt this will show the right time to invest.

Screenshot_20210423-233956_1619264811079.png
Rising wedge
The image above shows a rising wedge this means that the price is consolidating and waiting for a break out either up or down, BTC was showing this signal and this signal normally drops down instead of up and that is why the price fell from $64000 to $48000 and the target for the rising wedge is $44000 so unless there is a change of trend like from bearish to bullish because BTc is currently in a bearish trend.

In the chart above now that BTC is at $48000 it might consolidate for a while before the chart signal eventually reach it's target unless the bulls change the trend by buying Bitcoin.

Conclusion
The process of price Forecasting is not something you can just magically do, it takes years of practice and studies before you will be able to do things like that.

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Hi @okoyejoshua

Thank you for joining The Steemit Crypto Academy Courses and participated in the Week 10 Homework Task.

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Provided information are explained well, but expecting more details. Also, on the price prediction topic, you could have done better try to go for more detail.
You have good views but try to express the topic more in detail as per your view on it, try to provide ideas, suggestions to your readers what they need to implement in their trading.
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Done

Your Week 10 Homework Task verification has been done by @Stream4u, hope you have enjoyed and learned something new.

Thank You.
@stream4u
Crypto Professors : Steemit Crypto Academy