Graphic and technical analysis
More controversial, the technical analysis consists of analyzing the price curves of the various assets in order to identify trends and predict future developments based on past market movements. Some Cartesian minds will consider that this consists in affirming that it will rain next Wednesday price of bitcoin because it rained during the three previous Wednesdays. But when the majority of economic players agree to attribute validity to such indicators, the market can effectively react in the expected direction.
It is always necessary to consider that the mining industry has a strong impact on the valuation of Bitcoin. Most of the price of bitcoin created by miners is indeed put up for sale quickly so that the company can pay its bills, especially electrical energy. There is, therefore, the steady descending force on the cost due to the removal activity, which will slowly reduce as soon as bitcoin manufacture slows down.
The financial context
Today, the world of traditional finance is taking a very close interest in these assets as a vehicle for portfolio diversification. The wisest investors will be able to analyze several and weigh them in parallel, but it is not given to all. During the month of April 2019, we were able to witness a sharp rise in prices on the active crypto market, which could result from transfers from traditional stock markets, at a time when the risk on these is particularly high. These effects are likely to intensify as investors gain the confidence to enter this market.