THE CAUSES OF SPIKE IN CRYPTOCURRENCY PRICE
Hello to everyone in this great community and in the steemit platform at large today. I greet you all in good spirit and I want to believe that you all are doing just great today. If so, we ascribe praise to the creator for sustenance of life.
Today is the start of the weekend and I will be making an article related to cryptocurrency market price and as such I have titled my article THE CAUSE OF SPIKE IN CRYPTOCURRENCY PRICE.
This is an important discussion which I will like to discuss with us about and it is good that when traders especially the incoming ones understand how this works and what it entails. In a short while, I will be doing justice to the discussion topic as stated earlier. Why not join me as I begin my discussion.
Before I proceed, I deem it fit that it is relevant to explain the term Spike in related to cryptocurrency in other to aid more understanding regarding the discussion of today.
WHAT IS SPIKE?
Spike can be regarded as a sudden rise regarding a phenomenon whereby a sudden decline is been noticed afterwards. It is seen as a sharp rise of a thing and then comes an immediate fall regarding that thing.
When we say Spike in price this can be refer to as the sudden rise in cryptocurrency price in the market which goes above the higher highs that was seen previously and if possible can go beyond that as well and immediately, there would be a retracement of such spike and then we will see a huge decline regarding the price value of such asset.
This occurs a lot in the cryptocurrency market as far as trading in concerned. We have noticed severely how the price of a cryptocurrency will begin to rise so quickly and it looks like it ain't stopping nor going down and that is because as at that time there is a high purchasing power and hence the price keep increasing and as we all know in the cryptocurrency market, the higher bidder takes it all and if the purchasing power is greater than the selling power then cryptocurrency price or the price regarding that asset will continue on that trend until the sudden and expected decline surfaces in the market.
Now I believe with the above explanation, we are all familiar with the word spike and what it entails. I also went further to explain how it is related to cryptocurrency. Without making no procrastination, let us go straight to the discussion of the day haven said all that.
THE CAUSE OF SPIKE IN CRYPTOCURRENCY PRICE
Spike doesn't just occur in the cryptocurrency market without a catalyst that will influence o4 geared that action. It is certain that numerous factors are the reason behind the spike we see in the cryptocurrency market today.
The spike that is seen or that occurs in the cryptocurrency market is as a result of several factors and today, I will be discussing or place my focus on just two factors causing cryptocurrency market spike in price.
Spike in price is influenced by certain activities in the market and the two factors I will be talking about shortly are as follows.
Knowledge is in not doubt what we know as power or strength depending on how you view it. Spike occurs in the market as a result of several news that are critical. This news can be either fake or real but either ways, it influences the market activity. For example, there can be a news or a rumor as the case may be regarding a particular price asset and you will notice a great effect regarding the price of the said asset.
If a company decides to start accepting a particular cryptocurrency as a means of exchange for their products, you will notice that the price of the said cryptocurrency will begin to rise especially if the company is a reputable company and one that is highly known and reliable. In no time we will get to see that the price of the said asset will increase speedily and the purchasing power will be high.
That news has caused a spike in the price of that asset as we get to see strong buyers coming into the market to purchase that cryptocurrency just on hearing the news regarding the asset.
The decline that comes with it is noticed once the news received was a fake one or of that company decides to change her mind. That will bring down the price of that cryptocurrency so fast and leave other users to wonder how they will be able to make profit back as the price has gone down below their entry price.
I will have to take a break here for today and when I arrive tomorrow I will give us the other factors that influence spike in price of certain assets in the cryptocurrency market but for now, do have a blessed day!
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