Bitcoin/btc is a native coin of the bitcoin network created by satoshi Nakamoto and whose transaction can take place from one peer to another thus making it to be a decentralized asset. In order for it to be transferred from one peer to another, the first peer address must pay a transaction fees so that the miners can be able to validate the transaction .Upon the transaction being validated, it will enter the bitcoin blockchain thus the miners will be rewarded with the fees charged as well as with the new bitcoin coin being added to the network for also sharing their computing power.This makes it to be a using a proof of work consensus. As a proof of work coin, the mining reward normally keep on halving after every four years. Unlike other cryptocurrencies, bitcoin is considered to be an already established cryptocurrency in terms of liquidity thus it is well tradeable. This makes most traders to be able to able to trade it in a downwards and upward direction and be able to profit. Therefore, we can be able to analyze its price for one week based on traders behaviour as follows;
Traders behaviour
Since bitcoin is well tradeable as compared to other cryptocurrencies, we can therefore be able to analyze its weekly price analysis according to the way traders enter the market. Therefore we can say that as more traders are buying a given amount of bitcoin, the market for bitcoin will move with few traders who will be selling. This will make it to move in a downward direction so that the market can profit with few traders selling a given amount of bitcoin. On the other hand, if more sellers are selling their given amount of bitcoin, the market for bitcoin will move with fewa traders buying a given amount of bitcoin. This will make it to move in an upward market direction so that the market can profit with few traders buying a given amount of bitcoin. In one week time,there is possibility of bitcoin to start a bullish movement. This can further be explained as follows;
1. Bearish bitcoin market based on traders behaviour
In a bearish condition market, the bitcoin market in terms of USDT will be moving in a downwards direction. Since the beginning of this week, that is, 24th February 2020, the market for bitcoin has been moving in a downwards direction. There is possibility for this to continue until the end of this week. The reason as to why this may continue is because many bitcoin traders are buying a given amount of bitcoin with their USDT balance as compared to those few who are selling. This makes the bitcoin market to further continue moving downwards in order for the market to profit with few sellers. There is possibility of the market to go below $9000 after which the market will start recovering and start moving upwards in one week time. If you had initially sold your previously purchased bitcoin, then this is the right time to purchase it . You can either wait until it goes below $9000 or you can decide to purchase a given amount of bitcoin at current price of around $9080 since in one week time, the market will start moving upwards and can go beyond that price. Here is a candlestick market chart for bitcoin;
The above is the bitcoin market against USDT. Two points are being indicated. There is point A and point B. The bitcoin market in terms of USDT has been moving in a downwards direction as you can see from the chart above. The market managed to go all the way to $9100. This decrease in price has been due to more traders placing their buying orders compared to few traders placing their sell orders. Because of this, the bitcoin market continue to keep on moving downwards with few sellers so that it can also profit with many traders placing their buying orders all the way to around $9100. The number of sellers exceeded the number of buyers thus causing the market to gain an upward movement support with few buyers all the way to point A at around $9200. The number of buyers at point A again exceed the number of sellers thus causing the bitcoin market to gain again a downwards movement support with few sellers so that it can also profit from those many traders who are placing their buying orders. If more buyers will continue placing their buying orders, there is possibility of the market to continue moving downwards below point B all the way to below $9000. In one week from now, the market can gain an upwards support and start moving in an upward direction for the whole of next week to above $9200. As a bitcoin trader, you can either purchase a given amount of bitcoin with your USDT balance at above $9000 or can wait to purchase when it has gone below $9000. Always make sure to apply risk management well while placing your buy order if you want to profit well.
Summary
On Monday, 24th of 2020, the bitcoin price was trading at around $9800. The market then started to drop downwards all the way to around $9100 on Wednesday the same week. This decrease in price has been due to the buyers exceeding the sellers . Because of this, the bitcoin market moves with the few sellers in order to profit from the more buyers. In one week time, there is possibility of the sellers to exceed the buyers which can cause the bitcoin market to reverse and start an upward movement the whole of next week in order to profit from more sellers. Therefore, we can say that the movement of bitcoin market is determined by number of sellers and buyers in the market. If the buyers are more than the sellers , then the movement will be downwards while if the sellers are more than the buyers then the movement will be upwards.
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