Price forecasting is a process of price prediction of a service,product or commodity through examination of different factors like the price of other commodity, trend in season, the demand, offers from competing suppliers and others. This can also be an act of checking for a platform or medium that will give a better revenue or return on investment especially in crypto market which will help in decision making or to arrive at a good conclusion.

Price forecasting can be derived as a regression analysis which is a technique in statistics which is used in estimating the relationship that exist between the price of various product. In Crypto market, regression analysis can be use to compare different price of Crypto product like the price of Ethereun to the price of bitcoin.

Also the descriptive analysis which helps in making findings and also interpreting the relevant data collected for forecasting purpose. Lastly, the predictive analysis which help to forecast the probability of reoccurance of past prediction or result of forecasted price in the past.

Forecasting possible threats is an important factor in price prediction,having seen the strength of other competitive investment you have to check if they will not lead to the liquidation of the business which you want to invest into. Price forecasting can be seen as a test of tendency.

-Why price forecasting is needed

It brings focus and it gives direction, enabling traders or investors to understand or know where the price mechanism is moving to and if it will either drop in value or raise. In the Crypto market, it serves as a guide to practising traders or investors and the potential ones to know how price changes over time in other to make profits.

It also helps to forecast accurately that is with proper planning, the future could be predicted in allocation of price and forseeing greater plans to help in generating more tokens for the investor.In addition, it serves as an aid to cost minimization in sense that emphasis will be laid on efficient operation and not to waste capital or money on investment that might not yield returns in the future. Unrealistic investment can be easily gotten and dropped.

Here planning substitutes joint or directed efforts and deliberate decision for uncoordinated piece meal activity And judgement that would save time and efforts. Price forecasting can enable investor to know if a particular product (such as Cryptocurrency CFD- Ethereum,Bitcoin and the likes) will be the most profitable one within a specific period.

-Methods of price forecasting

Their are different methods adopted in the process of price prediction which includes the straight line method in which future income or revenue is forecasted through the use of figures that are historical.

The straight line method is the best and simplest method. Other methods includes simple linear regression,moving average and mutiple linear regression. Forecasting can be done either on a long-term basis,medium-term basis or short-term basis.

The long-term forecasting is normally done to cover a long period of time ranging from five years and above. With the long-term forecasting, investors can project into the future to check the hope of an investment for years to come. A price forecast can be done in a crypto market for bitcoin for the years to come to know how profitable it would be which serves as a basis for decision making,hence,capital needed to invest on it would be made known now.

The short term forecast is done for a period of six month or one year. This forecast is usually used to make up with the immediate need of the market or changes in market price. A slight change can occur with a certain period which will make a short term price forecast to be necessary. A short term price forecast may be done to back up long-term price forecast. It may still be less or more than the above stated period of time.

Also the medium price forecast which is a forecast which is conceived and expected to be actually used within a period of two to five years. It is a type of planning which sets and act as intermediary between long term and short term planning this type of price forecasting entails how plans for investment implementation and amendment of plans is neither too long nor too short but falls within the two contexts.

-How to forecast price

Taking Crypto asset chart and graph (attached to this write-up) using the moving average method of forecasting, we can see how forecast was made by Binance Coin for April.

The minimum and maximum price were derived from past historical figures where the minimum price and the maximum price are added together to prediction the likely price per day.

Like the prediction on Friday, April, 23: minimum price $436, maximum $502 and at the end of the day price 469 dollars a coin. BNB to USD predictions on Monday, April, 26: minimum price $404, maximum $464 and at the end of the day price 434 dollars a coin. Binance Coin price prediction on Tuesday, April, 27: minimum price $468, maximum $538 and at the end of the day price 503 dollars a coin. BNB to USD predictions on Wednesday, April, 28: minimum price $489, maximum $563 and at the end of the day price 526 dollars a coin.

In 1 week Binance Coin price prediction on Thursday, April, 29: minimum price $458, maximum $526 and at the end of the day price 492 dollars a coin. BNB to USD predictions on Friday, April, 30: minimum price $463, maximum $533 and at the end of the day price 498 dollars a coin.

To predict the price for the following month, the minimum and maximum prices will be derived from historical figures using the moving average method. Sometimes to have a good forecast, the use of two forecasting methods will be okay in which comparing each result of each forecast will enable a good result at the end.

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