Cryptocurrency is the new way of investment which has gained a lot of attention recently through the widespread adoption by big financial institutions. Bitcoin is the most popular cryptocurrency which is also the most expensive one because of its limited supply (21 million coins) and is valued at $6500 currently. One major concern with investing in Bitcoin is the price volatility in Cryptocurrency market which is induced by various factors such as drastic changes in government regulations and Taxation procedures, security concerns such as exchange hacks and bad press. Market manipulators try to create FUD (Fear, Uncertainty and Doubt) which results in major sell-off and this causes the prices to go down and up in short term.
As a novice investor, you can use various online tools to figure out the price movement of Bitcoin and other cryptocurrencies which can help you to make good investment decisions. Swing traders can generate good profits by making use of the volatility in the bitcoin market. Here we have listed some of the popular of the popular Bitcoin price prediction tools,
- Coining Signals
It is one of the popular speculation tools which can be used to monitor the bitcoin price on a 24/7 basis. It uses advanced AI and deep learning algorithms to predict the future price of bitcoin. It uses the current and historic price of bitcoin and other altcoins, technical indicators and deep learning algorithms to come up with an accurate prediction of bitcoin prices which can help traders to make their investment decisions accordingly. It also uses the social media buzz and changes in investment sentiment through social media posts. You can find out when the bitcoin price will go down or up and evaluate the expected gain in a bull market.
- MACD Indicator
The MACD is a powerful technical indicator which can be used to predict the bitcoin price movement in a volatile market. MACD stands for Moving Average Convergence Divergence and it is a momentum based indicator which can be based either on Simple or Exponential Moving Average (EMA). The MACD makes use of Exponential moving averages which include the EMA 12 and EMA 26 which is plotted across the bitcoin price chart. The Signal line is the moving average of the MACD line which can be used to indicate the buy and sell signals. Whenever the MACD line crosses above the Signal line, it indicates an uptrend and is a buy signal. Similarly, if the MACD line cross below the signal line, it indicates a sell signal as the downtrend is expected.
- Stochastic Oscillator
Another simple tool for bitcoin price prediction is the stochastic oscillator which is based on the fact that in a bull market prices will close near their high and in the downward trending market, prices will close their low. It can be used to figure out the overbought and oversold regions in Bitcoin chart and help in predicting the future price.
- Relative Strength Index (RSI) Indicator
Another simple and reliable price prediction tool is the RSI indicator which can be used to identify the overbought (Above 70) and oversold (Below 30) regions based on which investors can make their buy or sell decisions. It is a momentum based oscillator which can be used to figure out the change in direction and magnitude of the bitcoin price movement.
- Monte Carlo Simulation
Another tool to predict Bitcoin price is with the help of Monte Carlo simulation using the geometric Brownian motion model. You can calculate the daily returns and future movement of bitcoin price by using this simulation tool which is based on the historic daily prices. This method is based on the repeated random sampling of historic prices to obtain the future bitcoin price. Many investors have used this tool successfully to predict the price of bitcoin accurately for an entire year.