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…Market Sentiment A succinct definition of Market Sentiment Market SentimentLevel UpNEWIndividualsBusinessesDevelopersDiscoverCompanyGLOSSARYMARKET SENTIMENTCopy linkShare on TwitterShare on FacebookShare on LinkedinMarket SentimentMarket sentiment refers to the overall attitude or emotional tone of investors and traders regarding the cryptocurrency market or a specific digital asset. It is the collective psychology driving buying and selling behaviour, as well as influencing price movements. Mar…
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…Therefore, no clear trend emerges, and assets typically trade within a tight range. Characteristics: Market sentiment is dominated by disbelief and uncertaintyLow price volatilityLow trading volume The accumulation phase is also known as a consolidation phase, which generally marks the end of the downtrend. Some market participants may still consider it an uncertain time to enter the market, as it can be hard to deduce whether the asset will continue trending lower. But from another perspectiv…
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…Economic Uncertainty: Significant changes in CPI can create economic uncertainty, which may drive traders towards or away from riskier assets like cryptocurrencies, depending on the overall market sentiment. How Past CPI Changes Correlated With Bitcoin’s Price Movements Several instances have shown a correlation between CPI data and Bitcoin’s price: 2021 Inflation Surge: As US inflation hit multi-year highs in 2021 at the peak of the COVID pandemic, Bitcoin’s price also saw significant gai…
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…Therefore, no clear trend emerges, and assets typically trade within a tight range. Characteristics: Market sentiment is dominated by disbelief and uncertaintyLow price volatilityLow trading volume The accumulation phase is also known as a consolidation phase, which generally marks the end of the downtrend. Some market participants may still consider it an uncertain time to enter the market, as it can be hard to deduce whether the asset will continue trending lower. But from another perspectiv…
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…This influence has led to the observation that the actions of large holders can sometimes be a key factor in market sentiment and volatility. The actions of individual whales can vary widely. Some whales may be more focused on long-term holding and not actively engaged in trading, while others may be sophisticated traders employing various strategies. Conclusion Understanding the roles of market makers, takers, and crypto whales is fundamental to grasping the intricacies of the crypto market eco…
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…Investors have since used this term to describe the overall market sentiment that exhibits a similar pattern — an uptrending price trajectory. By definition, a bull market is the condition of a financial market in which the asset prices are rising or are expected to rise. Favourable macroeconomic conditions or high employment levels, all of which give investors confidence in the markets support this. What Causes a Bull Market? The driving factor behind a bull market is the growth of an e…
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…Investors have since used this term to describe the overall market sentiment that exhibits a similar pattern — an uptrending price trajectory. By definition, a bull market is the condition of a financial market in which the asset prices are rising or are expected to rise. Favourable macroeconomic conditions or high employment levels, all of which give investors confidence in the markets support this. What Causes a Bull Market? The driving factor behind a bull market is the growth of an e…
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…Liquidity in Crypto Markets: What It Is and Why It MattersLevel UpNEWIndividualsBusinessesDevelopersDiscoverCompanyUNIVERSITYTrading7 May 2024|BEGINNERS|7 MIN READLiquidity in Crypto Markets: What It Is and Why It MattersDiscover how liquidity in crypto markets affects market dynamics and trading strategies, and how liquidity pools work in DeFi. Key Takeaways: Liquidity in cryptocurrency markets refers to the ability to buy or sell assets quickly without causing a significant change in price, wh…
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…Traders have since used this term to describe the overall market sentiment that exhibits a similar pattern — an uptrending price trajectory in which asset prices are rising or expected to rise. The driving factors behind a bull market are the growth of an economy, such as the increase in a country’s gross domestic product (GDP), a growing employment rate, or low interest rates. However, apart from these quantifiable metrics, market sentiment — the overall perception of the financial marke…
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…In profit-taking, traders and investors may sell off their holdings after a significant price surge to lock in profits, causing downward pressure on prices.Additionally, external events like news about regulations, technological developments, security breaches, or changes in market sentiment can trigger corrections. While market corrections can be uncomfortable for traders, they are often a necessary and healthy part of the market cycles to prevent overvaluation, often setting the stage for more…
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