The importance of economic indicators for trade Bitcoin Cash (BCH) **
Bitcoin Cash (BCH), a digital peer-to-peer currency, has achieved considerable attention and acceptance in recent years. As one of the largest old coins on the market, dealers and investors strive, their potential and how it can be acted effectively. In this article we will examine the importance of economic indicators for the Bitcoin Cash (BCH) trade and provide insights into their use.
What are economic indicators?
Economic indicators are statistical values or data points that help predict future market movements and trends. As a rule, you will receive state reports, industrial activities and other sources that provide information about the economy. By analyzing these indicators, retailers can make sound decisions about the purchase, sale or a certain asset.
The importance of economic indicators for trading bch
When trading Bitcoin Cash (BCH), economic indicators play a crucial role in determining the market mood and influencing the price movements. Some important factors must be taken into account here:
- Gross domestic product (GDP) : A strong GDP growth rate can indicate a healthy economy that can lead to an increase in demand for BCH. Conversely, a weak GDP growth rate can signal economic instability, which may lead to a decline in BCH prices.
- Inflation rate : A high inflation rate can undermine the shopping output from BCH, which reduces the value over time. On the other hand, a low inflation rate can indicate that the price of BCH is too valued and correction is required.
- Unemployment rate : A low unemployment rate can signal economic growth and increased demand for BCH, while an increased unemployment rate can lead to a reduced trust of investors in the asset.
- Interest rates
: Changes to the interest rates of central banks can significantly influence the BCH prices. Higher interest rates can attract investors that strive for secure assets such as state bonds or CDs, which may lead to a decline in the BCH price.
- Raw material prices : The prices for raw materials such as oil, gold and metals can influence the BCH prices. For example, an increase in oil prices can lead to a higher demand for energy-intensive goods and increase BCH prices.
Tools and techniques
In order to include economic indicators in trade strategies, retailers use various tools and techniques, including:
- Diagram pattern : Analysis of diagram patterns, such as the Fibonacci retreat level or the inverse head and debt formation, can help identify possible proportions.
- Indicator -crossover strategy : This strategy includes the purchase of BCH when a bullish indicator (e.g. RSI) crosses over a bear indicator (e.g. stochastic oscillator) and sells it when it goes under a bearish indicator.
- Trend follows
: Trend includes the identification and driving of the trend of a wealth value using economic indicators to determine the strength and direction of the trend.
Examples in real world
- BCH/USD trade : For example, around $ 600 was traded in May 2018, but after a strong GDP growth rate from China, it rose to an all-time high of $ 850 in September 2018.
- COINDENGRATIONENALYS : The co -fountain analysis includes the examination of the relationship between BCH and other assets in order to determine the price dynamics. For example, if BCH is summarized with the gold prices, it can be more stable in times of economic uncertainty.
Diploma
Economic indicators play a crucial role in trading Bitcoin Cash (BCH). By analyzing GDP growth rates, inflation rates, unemployment rates, interest rates and raw material prices, retailers can make well -founded decisions about the purchase or sale of BCH. The use of diagram patterns, indicator crossings and trends of the following techniques can also be effective in the identification of potential price movements.
