Crypto Academy Week 10 || Homework Post for professor @stream4u|| All About Price Forecasting by @bluesdl

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First i would like to thank you professor @stream4u for you lecture about Price Forecasting. I happy to participate in this homework and i will always try to complete the regular homework.
This week Homework Task is:

1.What Is Price Forecasting?
2.Discuss on why Price Forecasting is needed?
3.What Methods are best you feel for Price Prediction/Forecasting.
4.Take any Crypto Asset Chart graph and explain how to do Price Forecasting? OR Take any Crypto Assets Chart graph & as per its current price tell us what will be its future price for next 1 week or 1 month? You can predict for any direction up or down but explain it properly on what basis you have predicted the price.

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Question 1&2: What Is Price Forecasting and why it is needed?

Price forecasting is a method that allows a person to predict the price of an asset in the future. By analysis price forecasting traders can gain clear view of the market trend. Every traders analyze price forecasting before he want to trade any crypto currency or any assets. Price forecasting is very important for invest. This is because, if anyone know about price forecasting very well he will trade in market without any loss.

We know crypto currency or any other assets is always volatile in the market. The price of these coin has upward trend and downward trend. So it is important to know about the price position and also important to know future prices. Traders or investor when analyze the Price Forecasting he can prepare himself and he can make a good decision. Price forecasting allows you to take advantage of opportunities in asset trading or investing after you've completed your research to estimate an asset's price. Traders or investors can maximize their profits by analyzing price forecasting .

Question 3. What Methods are best you feel for Price Prediction/Forecasting?

For price forecasting researchers follow three methods. There are technical analysis, fundamental analysis, and sentimental analysis. Despite all the methods that i mention is very important for price prediction ,however i suggest to used or follow first two methods( technical analysis, fundamental analysis). Moreover, in this homework i will explain every methods to you.

Technical analysis

Technical analysis is very important tools because this method are used to analyze the market. Using this method all the price projection and forecasting all details can be quickly gathered. Technical analysis can helps users by analyzing chart analysis, support, resistance, and moving average and so on. Moreover, you know that everything is now handle by technically and users or investors always keep their eyes on cryptocurrency market by using this method.

Fundamental analysis

Fundamental analysis is a technique for determining an asset's inherent value and examining the variables that may determine its price in the future. External developments and impacts, as well as financial statements and market patterns, are used in this type of study. Traders or investor can gather the right information by this method. They can also make the best decision on which place to take.
Fundamental analysis helps to the traders or investors to understand about the market value of assets. So, when they compare the market price they can determine easily if the commodity is overvalued or undervalued.

Sentimental analysis

Another method is Sentimental analysis . It 's also called opinion mining. There are so many traders and investors has been works in cryptocurrency for many years. They have huge knowledge about this business or currency. They share their opinion and thought with other openly and sentiment analysis is quickly becoming a necessary method for monitoring and understanding public opinion.
When new users want to invest in any assets, they first searching information about an asset from different sources such as blog, social media, friends and so on. The Sentimental analysis is endless because there are more people share their opinion in internet everyday and new users gather information from that.
This method is originally other opinions sothat this method not always true. Sometimes, it's could be both true or false.

Question 4:

Take any Crypto Asset Chart graph and explain how to do Price Forecasting? OR Take any Crypto Assets Chart graph & as per its current price tell us what will be its future price for next 1 week or 1 month? You can predict for any direction up or down but explain it properly on what basis you have predicted the price.

For this question i will try to explain first part. For this question I have taken Ethereum Crypto for analysis. I took these screenshot from worldcoinindex website. Here i can see all the information of Ethereum Crypto. Here you can see, last week the price of Ethereum gradually increased though it has some fluctuation . Last week he price of this coin between 2000-2600.

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However, since 2021 the price of this coin has increased. i can predict the price still will be in this range. A new investor can invest because the price is upward trend.

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You can also analyzed with previous year's data. You see from 2016 the price of Ethereum coin was law. However, after 2000, in 2021 the price of this coin has reached it's highest level. Looking at this graph, it is very easy to understand that if any investor wants to invest i think this the perfect time. Because the price of this coin has been rising for the last few years.

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Conclusion :

Price forecasting of an assets is very important for the traders and investors. By using forecast investor can makes good profit without any loss. Technical Analysis and Fundamental analysis are both essential for price prediction. These methods help them to gain more information about an assets.

Thank you for reading my homework. Specially thanks to professor @stream4u for your great lecture.

Cc: @stream4u

Written by: @bluesdl