Homework. Steemit Crpto Academy. Season 2, Week 2: Price Forcasting for @stream4u

Price Forcasting

The word forcast simply means predicting, to predict a future outcome.

Now when we talk about price forcasting we are talking about predicting the price of a goods if it will go up or come down. Now when we bring it home to cryptocurrency we can simply say price forcasting is the prediction in price of an asset it will go up, down or sideways.

Why Price Forcasting Is Needed

Well in a normal circumstances we would all love to make profits on our investment. A simple business or trader would always love to buy things cheaper and sell at a rate that ensures he will be in profit.

This is also applicable in the crpto business we would all want to make massive profits and minimal or no loss, hence the need for price forcasting.

Price forcasting we enable us to determine the movements of the market to know when to enter a position and when to exist. If we can accurately predict this then we could be making huge profits. The ability to know when to buy an asset and when to sell it's very important to every trader both in crptocurrency and everyday life.

So it's vital that we always know the direction of the market, knowing to buy the dip and sell the top is vital for every trader and hoddler alike.

My Best Method For Price Prediction

Well for me inasmuch as we have different methods for predicting the price of an asset personally my best method is fundamental analysis.

To me who don't do much trading but hodl i find fundamental analysis of more use. Generally i feel technical analysis is for traders who enter a market and exists multiple times a day or over the course of the week, i think is deals more with the immediate short term though it is also vital in predicting the long term price of a crpto.

To me for long term hoddlers people who are not just in the market for the short term but hoddlers who intend to hold on to an asset forever i think fundamental analysis is key, knowing the strength of the company, their projects, their management team, their goal and efforts being made to ensure this and overall performace over time. To me these factors determine where an asset is going not neccessarily in the immediate short time but over time in a long term basis will ensure massive profits for those who believe in the projects and have strong conviction in their development team. After all no one will invest in a project they don't believe in.

For me such things as media or trends can only impact a price on a shorter term and do not have much control over the long term future of a particular asset, take Xrp as a case study.

BTC CHAT GRAPH SOME TIME AROUND TODAY

Well am not really much of a technical analysis guy, but then i do have some ideas and thanks to this class too.

From the chat above btc is around 56k now, the price have kind of been bouncing off support somewhere around 55k range. That is a critical support range and btc have managed to close its candles for somedays now above it. The 55k range is proven to be a decisive support level for btc as i think if the bulls do not step in and hold the level and the bears break this level we may see a bigger correction on the immediate short term atleast to around 49-50k range or in the worst bearish scenerio we may break down to 43k range, these are all previous support.

Yes i say if we do not close the daily candle above 55k or thereabout we may see a flash crash on the immediate short term atleast. I say immediate short term because i believe fundamentally and historically this wont impact where btc is going on the long term, as i believe based on the previous bull cycles and the institutions buying in on bitcoin to hold for a long term we will over a 100k's btc by the end of the year 2021.