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​4 Indicators Help You to Find a Bull Market!

​4 Indicators Help You to Find a Bull Market! WikiBit 2021-06-21 16:57

Indicators commonly used in the cryptocurrency trading assist you to evaluate the preferences and sentiments of traders in this field.

Indicators commonly used in the cryptocurrency trading are introduced herein, assisting you to evaluate the preferences and sentiments of traders in this field.

Open interest

Observing indicators that are based on the volume of trading is a way to measure what is popular in the market. Among them is open interest which is in vogue, a general indicator for capital flowing into the market. It equals the total number of outstanding contracts held by investors at particular timing.

Capital flow of stablecoins

Traders may turn to stablecoins in a bid to minimize the volatility of prices when they expect that the digital currencies they hold can depreciate in the face of underselling. Therefore, it is also useful to pay attention to the volume of stablecoin trading and the overall trend of its movement.

Capital flow via exchanges

Investors may try dumping their digital assets via exchanges if they predict an impending bearish market in fear of the depreciation above-mentioned, which is a trend shown by net flows through exchanges that are equivalent to an indicator measuring the net amounts of tokens flowing into / out of an exchange.

Fear and greed index

As a hit in gauging investors sentiments, fear and greed index has always been useful in estimating the trough of the market.

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Disclaimer:

The views in this article only represent the author's personal views, and do not constitute investment advice on this platform. This platform does not guarantee the accuracy, completeness and timeliness of the information in the article, and will not be liable for any loss caused by the use of or reliance on the information in the article.

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