STEEMIT CRYPTO ACADEMY SEASON2 WEEK2 ASSIGNMENT BY@jimah1k:PRICE FORECASTING.

Hi fellow steemians;

Thanks to professor @stream4u for this wonderful lecture I begin by answering the assignments given.

PRICE FORECASTING

what is price forecasting?

Day in day out we see the prices of Bitcoin, Ethereum and other Cryptocurrency increase and decrease. Price forecasting is being able to tell what the prices of these assets will be either in the next week or next day. This helps investors because when you are able to predict the that Bitcoin will go high in the next few days and invest in it and it goes high you get a lot of profit.

Why is price forecasting is needed?

One major reason why investors need price forecasting because they are able to avoid losses in future for example assuming an investor invested his money in Bitcoin when it was $60,000 currently Bitcoin is at $55,532 so that means that the investor is going to hit a loss. That is why price forecasting is important

Another reason why it’s important is investors or traders are able to make the right decisions about which Cryptocurrency to invest in for example when one looks at price forecasting of he can invest in the the currency which is always on the rise and not depleting for example Ethereum this helps the investor make the right decision by investing in Ethereum.

In addition, prices of assets aren’t fixed they increase from time to time with price forecasting the investor can do two or more trades in one trend and sell when the assets prices is increasing and buy when the price reduces with this the user gradually increases his profit.

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

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Technical Analysis

With technical analysis the investor must do his homework well in the assets this means he has to take into consideration the trend, chart pattern and movements of the price from the past up till date before he can predict any future prices.

Fundamental Analysis

With fundamental analysis it doesn’t deal with following the trends of the assets but the studying the company looking at their success stories in the past how they are doing currently. What are they planning on implementing all this are taking into consideration before investing in them.

Sentimental Analysis

Depends on how good the predictor is investors can make a lot of profit when they predict correctly the prices of the assets and they also loss when they make bad predictions. Investors who use this method are usually into the media houses and news.

Which is preferred?

Taking a good look at the three methods the most common methods is Technical Analysis
And i think it’s the best choice in price forecasting because the investor pays attention to the trends and pattern so he get vast knowledge before you predict anything.

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.?

I want to talk about Bitcoin per its current price and what the price will be in for or month, I choose Bitcoin because I personally invest in it. I will be using Technical Analysis that is after carefully studying trends of Bitcoin.
Let’s begin

Bitcoin as of 21st January 2021 it current price was at Ghc187,236.21 with a volume of Ghc 417.647Bn in 5th February there was a sharp increase form Ghc187,236.21 to Ghc219,436.84

From 5th February the price of Bitcoin started to sky rocket. Looking at the way the price moved form January to February I would have held on hoping for it to increase in the coming months. Impatient Investors or those who don’t like taking risk can decide to sell and gain profit.

Looking at the price on 22 March and comparing it to the price on 5th February you can see an increment from Ghc219,436.21 to Ghc315,725.57 so investors who held on to their Bitcoin from February to March will gain a lot of profit as I advised.

To conclude looking at the trends and patterns of the monthly rise of the Bitcoin. I stand to predict that there will be a slight fall in the coming month ranging form Ghc315,725.56 to Ghs250,345.45 so I will edge investors to trade their Bitcoin because I see a fall in future.

CONCLUSION

Basically that’s what you need to know about price forecasting thank you professor for this lovely lecture.