The Importance Of Economic Indicators In Trading Bitcoin Cash (BCH)
importance of economic indicators in the Bitcoin Cash (BCH) trade
Bitcoin Cash (BCH), peer-to-peer digital currency, has received considerable attention and adoption in recent years. Being one of the largest altcoins on the market, traders and investors are happy to understand the potential and how to trade effectively. In this article, we examine the importance of economic indicators in the Bitcoin Cash (BCH) trade and provide information on their use.
What are the economic indicators?
Economic indicators are statistical values or databases that promote the forecast of future movements and market trends. These were generally obtained from government relationships, industrial activities and other sources that provide information on the economy. By analyzing these indicators, traders can make reasonable decisions on the purchase, sale or maintenance of a given device.
** Importance of economic indicators in the BCH trade
In Bitcoin Cash (BCH), economic indicators play a decisive role in determining market emotions and in the influence of price movements. Here are some key factors that must be considered:
- gross domestic product (GDP) : the growth rate of strong GDP can indicate a healthy economy, which can lead to an increase in the demand for BCH. On the contrary, the growth rate of weak GDP can indicate economic instability, which can potentially lead to a drop in BCH prices.
- Inflation rate : a high inflation rate can worsen the purchasing power of BCH, reducing its value over time. On the other hand, the low inflation rate may indicate that the BCH price has been excessively assessed and that it was to be repaired.
- Unemployment rate : a low unemployment rate can indicate economic growth and an increase in BCH demand, while the increase in the unemployment rate can reduce the trust of investors in the activity.
- Interest rates
: variations in the interest rate of central banks can significantly influence BCH prices. Higher interest rates can attract safer investors, such as state bonds or CDs, which can potentially lead to a drop in the BCH price.
- Basic prices
: goods such as oil, gold and metal prices can affect BCH prices. For example, the increase in oil prices is higher for the demand for high energy intensity goods, which increases BCH prices.
Tools and techniques
Traders use various tools and techniques to integrate economic indicators into trading strategies, including:
- Diagram models : Diagram models such as back -to -brain levels or the analysis of the reverse formation of the head and shoulder can help identify potential price movements.
- launches the crossing strategy : this strategy includes the purchase of a BCH crossing a bullish index (like RSI) on a bear (like a stochastic oscillator) and sells bch when a bear intersects under the index .
3
real examples
- BCH/USD Trade : For example, in May 2018, BCH/USD was about $ 600, but after a strong GDP growth rate from China, in September 2018, it went up to September 2018 .
2 For example, if BCH is recorded together with gold prices, it can be more stable at the time of economic uncertainty.
Conclusion
Economic indicators play a decisive role in the Bitcoin Cash (BCH) trade. By analyzing GDP growth rates, inflation rates, unemployment rates, interest rates and raw materials, merchants can make reasonable decisions on the purchase or sale of BCH. The trends of the diagram models, the crossing of the indicators and the following techniques can also effectively identify potential price movements.