• Language & Exchange Rate Switch
  • Preference Settings
    Rise/fall colour
    Start-End Time of the Change
Web3 Exchange
Gate Blog

Your Gateway to crypto news and insights

Gate.io Blog Price Analysis of BTC and ETH

Price Analysis of BTC and ETH

17 June 11:48


[TL; DR]

One of the essential metrics to consider as a crypto investor or trader is price analysis.

The price analysis is the continuous process of considering the past and present patterns in the financial market.

Price analysis enables you to gauge the financial market segment and identify whether an investment is profitable.

Price analysis in cryptocurrency helps identify the micro and macro factors affecting the rise and fall of crypto tokens.

The Bitcoin token fell from $68,000 to $48,000 in less than a year. The price of a BTC token is (currently) about $30,000.

The price value of Ethereum fell from an all-time high of $4,000 to less than $2,000.

Both crypto tokens' price fall and rise are interwoven and predicted in the past.

The predictions are accurate due to the price analysis conducted over some time.

Keywords: Bitcoin, Ethereum, price analysis, market, investor, trader, crypto, market forces.


[Full Article]


The crypto market is robust. Today, there are several tokens in the ecosystem, and the rise and fall in the price value of these tokens largely depend on several market forces and strategies.

As an investor or trader, you need to be wary of these market forces and look out. So how do you know these market forces and strategies so as not to run at a loss or invest in an unprofitable asset?

You need to keenly follow or engage in price analysis of the digital assets that interest you. For instance, as an ETH (the native token of Ethereum) or BTC (the native token of Bitcoin) holder/ trader, you need to study the price analysis of both tokens to avoid running at a loss.

Not to worry, this article will identify the basics of price analysis, how you can conduct price analysis and the price analysis of BTC and ETH.

Let's begin!



What Is Price Analysis?


Image: Ken Research

Price analysis is a continuous process in financial activity. It is an ongoing process whereby experts, investors, traders, and analysts consider past events and recurring patterns in the market to determine optimal trading strategies.

Price analysis is essential in financial markets to gauge market sentiment and to identify whether an investment will eventually become profitable or otherwise.

Price analysis in cryptocurrency is similar to price analysis in other markets. Price analysis in crypto helps you measure and identify the two leading indicators affecting the price value of crypto tokens.

Price analysis in cryptocurrency will help you identify whether the market is bullish with upward trending price action or the market is bearish with downward price pressure. In examining these indicators, there are several tools and techniques available.

These techniques and tools vary and can be combined to analyze an accurate price. Investors and traders of crypto tokens can analyze a cryptocurrency’s volume concerning its price. You can also use the candlestick charts to measure market sentiments.

Having explained what price analysis entails and why you should conduct price analysis, our spotlight shall move to the price analysis of BTC and ETH.


Price Analysis Of BTC


Image: Medium

BTC, the native token of Bitcoin, is currently witnessing a drastic fall in price. In November 2021, BTC reached its all-time high price value of $68,000. In the first week of January 2022, the price was nearly $48,000.

Since late January 2022, the price value of BTC has continued to fall to about $30,000. Surprisingly, the price value moved beyond the $31,000 mark in May 2022.

Research shows that some experts have predicted this fall in the price value of BTC, and their predictions are coming to pass. How is that possible and somewhat accurate? Price Analysis.

Conducting price analysis on BTC will help you identify that demand and supply predominantly affect the price value of BTC. The price analysis will also show that the occurrence of certain global fundamental events would have a direct and indirect impact on the value of Bitcoin.

For instance, in 2016, the demonetization of India’s banknote led to an increase in the price value of all crypto tokens. Tokens such as BTC were trading for 20% higher in India than in other parts of the world.

So as a trader or investor, conducting price analysis will let you know that should a country demonetize its currency, the value of crypto tokens in such a country will increase.


Price Analysis Of Ether


Image: U.Today

The Ethereum token, ETH, largely follows the pattern of BTC. If BTC should fall, ETH is expected to follow the same way likewise other crypto tokens.

Today, the 6th of June, 2022, Ethereum is trading at about $2,000, falling from above $4,000 in November 2021.

The price analysis shows that demand and supply are one of the main factors that led to the decline in price value, coupled with the 20% interest rate introduced by the Federal Reserve. However, Ethereum enthusiasts and traders are optimistic that the change from the Proof Of Work (PoW) protocol to the Proof of Stake (PoW) will bring back the lost value.


Conclusion


Price analyses are not always accurate. However, they will guide you in understanding the crypto market and what is likely to occur and serve as a wise investment guide.

Price analysis can change in 24 hours; it is advisable to gauge daily market forces and sentiments. Various tools and techniques will guide you in spotting patterns at the micro and macro levels to identify the overall market.

The micro and macroeconomics factors that affect the price value of Ether are similar to that of Bitcoin. The price analysis of both tokens will largely consider the same metrics and factors.

It is therefore advisable to know that the crypto tokens are volatile; aside from engaging in frequent price analysis, you should only invest the amount you can lose and won't be affected by such loss.






Author: Valentine. A, Gate.io Researcher

This article represents only the researcher's views and does not constitute any investment suggestions.

Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
ETH/USDT + 2.16%
BTC/USDT + 2.48%
GT/USDT + 6.49%
Unbox Your Luck and Get a $6666 Prize
Register Now
Claim 20 Points now
New User Exclusive: complete 2 steps to claim Points immediately!

🔑 Register an account with Gate.io

👨‍💼 Complete KYC within 24 hours

🎁 Claim Points Rewards

Claim now
Language and Region
Exchange Rate
Go to Gate.TR?
Gate.TR is online now.
You can click and go to Gate.TR or stay at Gate.io.