Following previous cycles is a tool many use to understand which direction a particular asset is going, amongst other indicators.
note: Past performance does not predict future events
However, Bitcoin has showed us every year during and after the halving, it has had significant effects on the psychology of the holders and traders, leading to particular market decisions.
Using what we know about previous market behaviors can lead us to be confident in our trading decisions.
One indicator we should always look at is the 24 hour volume, RSI, and moving averages.
One indication should not move you to make a decision, but many indicators should give you the confidence to make a trade.
Looking at fractals ( Patterns) can be extremely valuable, not because they are guaranteed to repeat, but because traders use them to build confidence in their trading decisions.
Looking at XRP's previous cycle starting in 2014 and ending 2017, we can see a very similar effect taking place currently starting from the beginning of 2018 until today.
This does not mean that XRP will repeat this performance.
Yet it is another indicator to use to give you the trader confidence in your trade.
If XRP repeats its past performance we may see an astronomical increase in price in the coming months. That is a big IF.
Another economist named Richard Wycoff, is known for his method of trading different stages in an assets performance. Distribution vs accumulation.
View his charts on Google to get a better understanding of the stages.
This post should not be taken as financial advice, but just something to think about.
Good luck to those in this market, do not gamble, do not be greedy, take care of your families.
note: Past performance does not predict future events
However, Bitcoin has showed us every year during and after the halving, it has had significant effects on the psychology of the holders and traders, leading to particular market decisions.
Using what we know about previous market behaviors can lead us to be confident in our trading decisions.
One indicator we should always look at is the 24 hour volume, RSI, and moving averages.
One indication should not move you to make a decision, but many indicators should give you the confidence to make a trade.
Looking at fractals ( Patterns) can be extremely valuable, not because they are guaranteed to repeat, but because traders use them to build confidence in their trading decisions.
Looking at XRP's previous cycle starting in 2014 and ending 2017, we can see a very similar effect taking place currently starting from the beginning of 2018 until today.
This does not mean that XRP will repeat this performance.
Yet it is another indicator to use to give you the trader confidence in your trade.
If XRP repeats its past performance we may see an astronomical increase in price in the coming months. That is a big IF.
Another economist named Richard Wycoff, is known for his method of trading different stages in an assets performance. Distribution vs accumulation.
View his charts on Google to get a better understanding of the stages.
This post should not be taken as financial advice, but just something to think about.
Good luck to those in this market, do not gamble, do not be greedy, take care of your families.