Bitcoin recently has been recording a consistent fall in its price. In June 2022, bitcoin fell by 32%, which was one of the lowest in months. Its price in May was trading at around $32,000. The closing price in June was about $20,000, which was a drop by about $12,000 compared to May.
This is a big loss to those who own BTC, but for new entrants, it is an opportunity to buy. To avoid such huge losses, it is necessary to understand how to predict profits. You require different types of knowledge to achieve this goal.
Gain knowledge of the cryptocurrency economy
Learning economy helps you to understand the society around you. You get a better understanding of how the bitcoin market behaves. You will learn how to take advantage of opportunities as they emerge. You might want to join a course where teaching cryptocurrency concepts is given greater focus.
Pay attention to topics such as risk management, market analysis, and predicting crypto prices. The cryptocurrency economy is different from the cash economy. Traditional currencies are controlled by governments. Cryptocurrencies are decentralized and do not require central/federal banks.
How can humanities students start earning on crypto?
You don’t have to study cryptocurrency to trade in bitcoin or understand how to buy bitcoin. Many students have studied entirely different specialties but still engage in bitcoin mining. Some have studied geography, philosophy, or history. Any extra course such as analytics or statistics can help a student determine bitcoin prices better.
To create time for such courses, get a professional writer online to write your papers. You can find a philosophy essay writer on EduBirdie, one of the leading writing websites. The expert writer can help you complete your college paper on philosophy on time and ensure outstanding quality.
Become an analyst
Analysts study complex data to predict the future of markets. They can study data generated daily or use historical information. When it comes to bitcoin prices, they can study its behavior since it was launched. They aim to understand why its price kept rising for many years. They also aim to understand why the current sharp price fall is being experienced. The results they get will help them determine if the price will rise or fall further.
Learn how to trade with cryptocurrency
Different people trade with bitcoin for different reasons. Some people buy it to keep for the future, which can be five years or more. Other people buy to make a profit once the prices go up. Thousands of new traders join the market without knowledge. They don’t know the rules to follow or how to predict the market. Due to this, they lose their money and may hate the crypto market. Knowledge of trading with bitcoin or cryptocurrencies is important.
How students can predict the fall of bitcoin through the study of analytics
One of the ways to predict bitcoin prices is through data analysis. A student needs knowledge of analytics to understand the concepts better. They are taught to use specific computer programs to analyze data or statistics. Through knowledge, they can discover, interpret, and get insights from data. The patterns they generate help them decide if the price will rise or fall. Bitcoin analysis can be done in three strategies.
In this analysis, the student studies historical price movements. The report they generate will help them understand if the price will go up or down. This method uses charts, tables, and graphs to identify indicators. This method can give a trader more than 55% accuracy of the bitcoin price behavior.
This type of approach relies on both historical and current data to determine prices. The student uses both qualitative and quantitative data to help them predict the bitcoin price direction. The information helps them decide if the price is under or overvalued. If it is undervalued, it is an opportunity to buy. If it is overvalued, it is an opportunity to sell.
On-chain analysis means analyzing data available on the blockchain. This is the current data available from day to day buying behavior of traders. There could be more people buying than those selling or vice versa. These are signals that can help predict if the price will go up or down.
The price of bitcoin has been falling sharply in recent weeks. The cryptocurrency lost 32% between the end of May and June 2022. Without a better understanding of the market, it might be harder to determine whether it’s time to buy or sell bitcoin. You need knowledge on how to analyze the market to predict price movement. People who have studied economy, analysis, and cryptocurrency trading can predict bitcoin price movement better.
Carla Davis is a world traveler with an aim to cover every country in the world. She has already covered many countries, and her plans always revolve around exploring lesser-
known places. She is a digital nomad, and her job is academic writing, where she covers research papers, essays and thesis.