Bittime -Crypto assets are known for its high volatility because it can experience drastic spikes or drops in a short time. According to analysts from research company 10x Research, there is an interesting pattern that crypto investors and traders need to pay attention to.
Positive News Triggers Price Increases
10x Research states that news announcements or positive developments are often the main cause of crypto asset price movements. This trend occurs repeatedly, with Bitcoin and other crypto assets experiencing significant price increases when new news or driving factors emerge.
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Bitcoin Sell-off After Actual Events
However, this pattern has another side that you need to be aware of. After the positive news or event actually occurs, the upward momentum in prices is often followed by selling or sell-off.
In other words, investors who previously hunted for profits from positive news will release their crypto asset holdings after the news is realized.
Crypto market players need to understand the importance of news and be able to react quickly. According to 10x Research, investors and traders should ideally maintain a bullish position, at least until the news becomes a reality.
Case in point: Bitcoin and New Product Announcements
10x Research provides several examples to strengthen that argument. One example is the announcement of the launch of Bitcoin futures contracts by CME Group on October 31 2017.
After the news was announced, Bitcoin prices immediately increased by up to 150% during the period between the announcement and the launch of the Bitcoin futures contract on December 18 2017.
Another example is the announcement of Coinbase's direct listing on the stock exchange on January 28 2021. Bitcoin prices were recorded to have increased by 80% during the period between the announcement and Coinbase's official listing date on April 14 2021.
Also Read How to Buy Crypto:
Conclusion
Therefore, crypto investors and traders need to be aware of the potential sell-off of Bitcoin after news announcements or positive developments. Understanding these patterns and reacting quickly can be a strategy for maximizing profits in volatile crypto markets.
However, it is important to remember that analyst predictions and historical patterns are not a guarantee of accuracy. Always do independent research and manage financial risks wisely before making investment decisions.
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How to Buy Crypto with Bittime
You can buy and sell crypto assets in an easy and safe way through Bittime. Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti.
To be able to buy crypto assets on 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 into your wallet. 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 price chart movements of Bitcoin (BTC) , Ethereum (ETH) , Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.
Also Read:
How long will it take for Bitcoin to recover after the Bitcoin halving?
Bitcoin Legality: Is Bitcoin Legal in Different Countries?
Bitcoin Trading Strategy: How to Make Money from Bitcoin
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.
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