Statistical Analysis About Bitcoins and Cryptocurrencies?

Statistical Analysis About Bitcoins and Cryptocurrencies

Many people may be worried that they are interested in investing but are afraid that they will lose. Do you want to buy it before the price goes up but do not know when to buy it? Crypto-assets (cryptocurrencies) such as bitcoin move greatly. So there is a possibility that you may lose depending on the timing of the purchase. This article provides tips and methods for anticipating bitcoin price fluctuations using statical parameters,

Can you expect bitcoin to rise or fall?

There is information that many people refer to in investments, such as corporate financial results. Suppose it is stocks or employment statistics in forex. Can cryptocurrencies such as bitcoin also predict price movements based on some information? In the first place, it is not limited to bitcoin, but why does the price of investment products rise and fall? 

One of the common questions faced by many individuals is the dynamics of pricing. The demand and supply of cryptocurrency also impact the pricing. The maximum number of bitcoins issued, which means the collection, is 21,000,000.

Because the supply limit is fixed now, the price will increase if the demand for bitcoins increases. In other words, knowing the factors driving demand can help you predict the timing of the price increase in advance and help you buy bitcoin. The other way around is authentic: if you know what will be low in demand, you can sell before losing money or forewarn your purchase. 

Analyzing Stock-flow models-Statistical Model

Unlike AI, predictions with analytical models are called stock-flow models. A stock-flow model is an analytical model calculated based on stock-flow ratios. The following formula can determine the stock-flow ratio:

Stock-flow ratio = annual supply (flow) ÷ the amount of stock present in the market

In the stock-flow model, bitcoin is forecast to exceed “1 BTC = about $100,00 ( 84190 USD)” by 2021. In addition, the stock-flow model is expected to exceed $1 million in 2025. It is forecasted that bitcoin will be about 48824 USD from May 2020. It’s a good chance that future predictions will also be true, so it’s helpful.

When is it recommended to buy bitcoin?

There are two possible cases of buying bitcoin or when to buy bitcoin. When to buy bitcoin?

  • When prices crashed
  • Immediately after the positive bitcoin news came out.

Let’s take a closer look at why each time of year, bitcoin is recommended.

When prices crashed


Bitcoin prices often crash due to changes in bitcoin regulations and financial conditions in each country, but it can be said that buying bitcoin in the event of a crash is an opportunity.

This is because there is a high possibility that excessive sell orders will be flooded at the timing of a crash, and the price may fall more than the market situation. For example, many investors rush to sell bitcoin if it falls by about 20% in a few days, fearing it will crash further. Therefore, prices often fall sharply due to dismayed sales.

Immediately after the positive news about bitcoin came out

Positive communication is coming out, such as the adoption of fiat currencies, the handling of ETFs, and the expansion of payment services. So it is possible to profit if you can ride the wave of price increases. After an uptrend, there is always a time to fall as a time for the price adjustment. So using technical analysis will help us to predict and to determine.

What is technical or statistical analysis? 

Technical analysis is an analysis method that predicts future directions and price levels based on past price changes. The statical analysis uses charts to analyze past price trends. The analysis uses “candlesticks” that express price movements over a specific period and “moving average lines”, which connect the average values used to grasp price transitions in the chart. 

To Conclude

Statistical analysis is a method that predicts price levels based on past performance (price movements) through a chart that shows the price transition for a specific period. With Bitcoin Era in hand, you can consider various such graphs and charts. It feels like multiple indicators for the chart and bars.

Masri serves as the Chief Content Editor at BestKodiTips. With three years of experience, she excels in creating technical content, focusing on how-to guides, Android and Kodi tutorials, app reviews, and addressing common technological challenges. She ensures to stay abreast of the latest tech updates. Outside of work, Masir finds pleasure in reading books, watching documentaries, and engaging in table tennis.

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