Effect of the feeling of the cryptocurrency market: understanding of prices

The world of cryptocurrency has undergone a meteoric increase in recent years, with prices fired at unprecedented levels. However, under the surface there is a complex system of market feeling and its direct influence on prices. In this article, we will deepen the dynamics of the cryptocurrency markets, exploring the way in which the feeling plays an important role in the configuration of the price movement.

What is the feeling of the market?

The feeling of the market refers to collective attitude or opinion in the hands of investors on a particular activity, market or economic trend. It covers several factors, including the trust of investors, emotions and expectations. In the context of the cryptocurrency markets, the feeling can be influenced by a combination of psychological and emotional drivers.

Types of market sensation

There are different types of market sensation that contribute to the action of prices in cryptocurrency markets:

• Fear and greed: These two fundamental emotions promote market behavior. Fear is triggered by concerns about market volatility, regulatory uncertainty or negative news, while greed is guided by speculation and rapid gain potential.

• Sensation of consultancy: This type of feeling implies the opinions of experts, institutions and figures well known in the cryptocurrency space.

• Institutional sensation: This feeling covers the opinions of the main financial institutions, such as banks, exchanges and investment companies.

How the market feeling affects the prices

When the feeling of the market changes significantly, it can lead to substantial price movements in cryptocurrency markets. Here are some ways in which feeling influences the action of the price:

• Increase in purchase pressure: When investors become optimistic on the future of cryptocurrencies, they tend to increase the purchase pressure, which increases prices.

• Signals

  : on the contrary, when the feeling becomes negative, investors can sell their positions, which leads to a decrease in prices.

• Mercato volatility: strong changes in feeling can lead to greater volatility of the market, since traders quickly react to unexpected news or events.

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Factors that influence the feeling of the market

Several factors contribute to the dynamic nature of market feeling:

• News and events: the progress of technology, innovation or political decisions can generate significant changes in the attitudes of investors.

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• Economic indicators: changes in economic indicators, such as inflation rates, GDP growth or work number, can affect investors’ trust.

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Study cases: Sentiment of the cryptocurrency market

Several remarkable cryptocurrency price movements offer information on the dynamics of the market sensation:

• Bitcoin (BTC): the bull of 2017 and the subsequent accident highlighted the volatility of the sensation of the market in Bitcoin.

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Conclusion

The cryptocurrency markets are intrinsically volatile, with prices influenced by a complex interaction of factors, including market feeling. As the attitudes of investors change, even the dynamics of the price action in these markets.

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