3 Key Metrics to Read Cryptocurrency Price Movements

Bittime - Bitcoin, the most famous and popular crypto asset, has become a highlight in the financial industry with its phenomenal price surge. As Bitcoin prices approach or even reach $20,000, crypto market players and investors begin to pay attention to 3 key metrics to read trends and predict subsequent price movements. So, what are the 3 main metrics used when Bitcoin price tries to read price movements?

Check Today's Crypto Market:

1. Trading Volume

Trading volume is one of the most important metrics in analyzing Bitcoin price. This metric reflects how much Bitcoin was traded in a certain time period. 

As the price of Bitcoin approaches $20,000, high trading volume can be a strong indicator that the uptrend will continue. High trading volume indicates strong interest from traders and investors, which can drive prices higher.

However, keep in mind that high trading volume can also signal greater volatility. This means that the price of Bitcoin can rise or fall quickly in a short period of time. 

Therefore, it is important to not only look at trading volume in absolute terms, but also pay attention to the percentage change in trading volume relative to the previous day to gain a better understanding of market dynamics.

2. Network Hash Rate (Hash Rate) 

Network hash rate is a measure of the computing power used to validate transactions and secure the Bitcoin network. As Bitcoin price tries to reach $20,000, the network's high hash rate indicates that more and more miners are participating in the mining process. This indicates miners' high confidence in Bitcoin's long-term prospects.

However, high network hash rates can also pose challenges. The higher the hash rate, the harder it is to mine new Bitcoins. This can lead to additional costs for miners and drive some small or inefficient miners out of the market. Therefore, changes in the network hash rate also need to be considered to understand their potential impact on the Bitcoin price.

Also read:

3. Market Sentiment

Market sentiment refers to the general attitude and perception of market participants towards Bitcoin. This includes views on price growth potential, confidence in blockchain technology, and external factors such as news or government regulations. As Bitcoin price approaches $20,000, positive market sentiment could be a key driver for further price spikes. 

Therefore, it is important to keep an eye on various sources to understand the market sentiment well. This could include online crypto forums, social media, or market surveys. However, keep in mind that market sentiment can change quickly based on new news or events, so it is important to keep information updated regularly.

Conclusion

By paying attention to 3 key metrics, namely trading volume, network hash rate, and market sentiment, investors and crypto market players can have a better picture of the state of the market as Bitcoin price tries to peak. 

However, it is important to remember that no single metric can accurately predict Bitcoin price movements. A combination of various fundamental and technical factors need to be considered to make wise investment decisions. 

By understanding these metrics and staying alert to market developments, you can increase your chances of success in the face of high crypto market volatility.

Also Read: What is a Block and How it Works in Blockchain

How to Buy Crypto from Bittime

You can buy and sell crypto assets in an easy and safe way via Bittime. Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti.

To be able to buy crypto assets at Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds intowallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application.

Monitor graphic movement of Bitcoin (BTC) price, Ethereum (ETH), Solana (SUN) and other cryptos to find out today's crypto market trends in real-time on Bittime.

Read Also:

What Are Crypto Wallets?

What are Smart Contracts?

What is Bitcoin and How Does It Work?

DISCLAIMER : This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.