Crypto uptrend market uptrend phase is always expected by investors. During this phase, investors tend to sell more than buy. So how is it different from the downtrend? Let’s find out more about Crypto Trading in the article below
What you need to know about the Crypto uptrend
What do you know about the Crypto uptrend? Here are the concepts and some necessary knowledge.
What is the crypto uptrend?
The uptrend in Crypto is a term used to refer to the upward trend of the market price over a certain period of time. In this trend, the price of cryptocurrencies increases over time, creating new bottoms and peaks. Also during the uptrend market, the number of people buying cryptocurrencies also increases. From there, pushing the price of Crypto up.
The uptrend is a positive sign for the market. Investors can take advantage of this time to invest and make a profit.
However, some other experienced Crypto players believe that the market’s uptrend is uncertain. During the uptrend, the cryptocurrency market may have adjustments and fluctuations. Therefore, investors need to pay more attention to other factors to evaluate the market as well as manage risks when trading during this uptrend period.
See more: What is Dump? Tips to help you “avoid” the dump trap
Signs to recognize Crypto market uptrend
To recognize the Crypto market uptrend, investors can identify through the following signs:
The first sign is that the trend line is gradually increasing. The price of the cryptocurrency also continuously increases along that trend line.
Along with the increase in cryptocurrency prices, the number of investors participating in the market has also increased significantly. This is shown by the increase in the number of new trading accounts, the number of margin accounts or the number of individual or institutional investors.
As the number of new account registrations increases, the trading volume of cryptocurrencies also increases.
Criteria affecting the market uptrend
The Crypto uptrend market uptrend is influenced by many different criteria. Including:
– Economic – social – political news:
Information about the economic, social, and political situation at home and abroad can affect the development of industries in the economy as well as businesses. This will also affect Blockchain and cause fluctuations in the prices of cryptocurrencies.
– Interest rate:
Bank interest rates will affect the cost of borrowing as well as the cost of investing in Crypto projects. This affects Crypto prices and creates an uptrend or downtrend market.
– Forex market:
The volatility of the foreign exchange market is reflected in the ups and downs of currency rates. This volatility can also affect the prices of coins in the Crypto market.
– Business situation of the projects:
The business model, profit margin, and expectations for Blockchain projects are also factors that affect the price trend of the project’s coin/token. In addition, the cross-chain bridge transfer of Crypto assets or tokens, and data between Blockchain projects also causes the price of coins to fluctuate.
Crypto uptrend market trend identification tools
To determine the Crypto market uptrend, investors can use popular tools such as:
– Japanese candlestick chart:
Candlestick charts provide investors with important information about the price fluctuations of cryptocurrencies every second and every minute. Based on monitoring and analyzing the charts, investors can make predictions about the trend of the Crypto trading market.
– Moving average MA (Moving average):
The moving average MA is calculated by the average price of a cryptocurrency over a certain period of time. Based on that, investors can evaluate to determine the market trend in the past. From there, make judgments for the present and the future.
– Trendline:
The trendline connects the bottoms and tops of the price chart. When identifying this trendline, investors can predict the uptrend of the Crypto market. From there, decide whether to buy or sell the cryptocurrency or not.
– Relative strength index RSI indicator:
This indicator is used to measure the strength of a cryptocurrency. From there, it determines the future trend of the Crypto market. The indicator provides important information about the strength/weakness of buying or selling a certain cryptocurrency.
See more: MEXC: Open a MEXC account, invest effectively
Trading experience when the Crypto market is on an uptrend
Most investors want the Crypto market to go uptrend to make a profit. However, trading in the Crypto market uptrend does not always bring the expected successful results. If you do not have much experience in trading in this market, please refer to some of the following investment methods:
Buy at a high price near the previous high during the Crypto uptrend
As you know, when trading any asset, investors want its price to increase. That is why they often tend to make trading decisions when the price moves slightly above the short-term resistance level. Investors should buy cryptocurrencies at a level close to the previous high.
Besides, you can also wait until the price moves to the highest level with the signals you have identified and then buy. Then, wait for the price to increase and dump to take profit. As for what is Dump in crypto, you can refer to other articles on the page.
Wait for the price to retrace and then buy.
It can be said that the financial market, including the Crypto market, is constantly fluctuating, up and down every second, even when it is in an uptrend. At this time, the movements that cause the price to drop lower are called price retracements.
You can buy cryptocurrencies during this time. Then, you take advantage of the opportunity when the price goes higher after the pullback and sell to make a profit. The difference between the selling price and the buying price is the profit you get.
Conclude
The Crypto uptrend market can be considered a “fertile land” for investors to place orders. You should not miss this opportunity. Besides, to invest more safely and effectively, do not forget to update yourself with other useful knowledge on the Crypto Trading page!
FAQs
Could the Crypto Uptrend Be Fake?
There are also many cases of uptrend traps. The reason is that investors analyze the market in too short a time, and the trend is not really clear. Or maybe you judge and use inaccurate analysis tools to determine the wrong trend.
How long does a Crypto market uptrend usually last?
The duration of a Crypto uptrend depends on many factors. For example, the level of investor interest, economic and political factors, etc. Therefore, it is difficult to determine.
When should I take profit in an uptrend?
The timing of taking profit will depend on the expectation and desired profit of each investor.
