The importance of economic indicators in the Bitcoin Cash trade (BCH)
Bitcoin Cash (BCH), a digital currency between peers, has gained significant attention and adoption in recent years. As one of the largest alternatives in the market, merchants and investors are eager to understand their potential and how it can be negotiated effectively. In this article, we will explore the importance of economic indicators in the Bitcoin Cash trade (BCH) and provide information about its use.
What are economic indicators?
Economic indicators are statistical values or data points that help forecast future movements and trends in the market. In general, they are obtained from government reports, industrial activities and other sources that provide information about the economy. When analyzing these indicators, merchants can make informed decisions about the purchase, sale or possession of a private asset.
The importance of economic indicators in the BCH
In the Bitcoin Cash trade (BCH), economic indicators play a crucial role in determining the feeling of the market and influence price movements. Here are some key factors to consider:
- Gross Domestic Product (GDP) : A strong GDP growth rate may indicate a healthy economy, which can lead to an increase in BCH demand. On the contrary, a weak GDP growth rate may indicate economic instability, which potentially leads to a decrease in BCH prices.
- Inflation rate
: A high inflation rate can erode the purchasing power of Bch, reducing its value over time. On the other hand, a low inflation rate can indicate that the price of BCH has appreciated too much and needs correction.
- Unemployment rate : A low unemployment rate may indicate economic growth and a greater demand for BCH, while an elevated unemployment rate can lead to a decrease in investor confidence in the asset.
- Interest rates : Changes in interest rates of central banks can significantly affect BCH prices. Higher interest rates can attract investors looking for safer active, such as government or CD bonds, which can lead to a decrease in the BCH price.
- Basic products prices : The prices of basic products such as oil, gold and metals can influence BCH prices. For example, an increase in oil prices can lead to a greater demand for energy intensive goods, which increases BCH prices.
Tools and techniques
To incorporate economic indicators in commercial strategies, merchants use various tools and techniques, which include:
- Graphics patterns : Analysis of graphics patterns, such as fibonacci setback levels or inverse head and shoulder formation, can help identify possible price movements.
- Indicator crossing strategy : This strategy implies buy BCH when an upward indicator (for example, RSI) crosses above a bearish indicator (for example, a stochastic oscillator) and sells BCH when it crosses below A bassist indicator.
- Next : The following trend implies identifying and setting up the trend of an asset, using economic indicators to determine the strength and direction of the trend.
Real world examples
- ** BCH/USD September 2018.
- COINGRATION ANALYSIS : Counting analysis implies studying the relationship between BCH and other assets to determine its price dynamics. For example, if BCH is co -integrated with gold prices, it can be more stable during periods of economic uncertainty.
Conclusion
Economic indicators play a crucial role in the Bitcoin Cash trade (BCH). When analyzing GDP growth rates, inflation rates, unemployment rates, interest rates and basic products prices, merchants can make informed decisions about the purchase or sale of BCH. The use of graphics patterns, crosses of indicators and trend monitoring techniques can also be effective to identify possible price movements.