Importance of economic indicators in Bitcoin Cash (BCH)
Bitcoin Cash (BCH), a digital currency of colleagues, has attracted significant attention and adoption in recent years. As one of the largest altocoin on the market, traders and investors are eager to understand their potential and how to trade efficiently. In this article, we will explore the importance of economic indicators in Bitcoin Cash (BCH) trade and provide a perspective on their use.
What are the economic indicators?
Economic indicators are statistical values or data points that help predict future movements and trends on the market. Usually, they are obtained from government reports, industrial activities and other sources that provide economy information. By analyzing these indicators, traders can make knowledgeable decisions to buy, sell or hold certain assets.
Importance of economic indicators in BCH trade
In the Bitcoin Cash (BCH) store, economic indicators play a key role in determining the mood on the market and influence on the price movement. Here are some key factors to consider:
- Gross domestic product (GDP) : The strong GDP growth rate may indicate a healthy economy, which can increase BCH demand. Unlike this, the rate of low GDP growth can signal economic instability, which can lead to a decrease in bch prices.
- Inflation rate : The high inflation rate can affect the purchasing power BCH, reducing the value over time. On the other hand, the low inflation rate may indicate that the price BCH has appreciated too much and needs a correction.
- Unemployment rate : Low unemployment rate can signal economic growth and increased demand for BCH, while high unemployment rate can reduce investor trust.
- Interest rate : Drip rates changes from central banks can significantly affect BCH prices. Higher interest rates can attract investors looking for safer properties, such as government bonds or CDs, which can lead to a decrease in BCH prices.
- Prices of goods : Prices of goods such as oil, gold and metal can affect BCH prices. For example, an increase in oil prices can lead to a higher demand for intense goods, increasing BCH prices.
Tools and Techniques
To install economic indicators in trading strategies, traders use various tools and techniques, including:
- Graphic forms : Analysis of graphic samples, such as the level of fibonaccia transformation or reverse shoulder formation, can help recognize the potential price movements.
- The strategy of the crossover indicator : This strategy includes the purchase of BCH -A when the Taurus indicator (for example RSI) crosses above the bear indicator (for example, the stomach oscillator) and sells BCH when it goes under the bear indicator.
- The following tendency : The following trend includes identifying and traveling asset tendency, using economic indicators to determine the power and direction of the trend.
Examples in the real world
- BCH/USD betrayal
: For example, in May 2018, BCH/USD traded around 600 USD, but after a strong China GDP growth rate, in September 2018, increased to maximum maximum of $ 850.
- Cointegration analysis : Cointegration analysis includes the study of relationships between BCH and other assets to determine the dynamics of its prices. For example, if BCH is corrupt with gold prices, it can be more stable in a period of economic uncertainty.
Conclusion
Economic indicators play a key role in the Bitcoin Cash (BCH) store. Analyzing the rates of GDP growth, inflation rates, unemployment rates, interest rates and goods prices, traders can make known decisions to buy or sell BCH. The use of graphic samples, the crossing of indicators and the trends of the following techniques can also be effective in identifying the potential price movement.