Understanding the Oscillation of Bitcoin Price

Understanding one of the most volatile
assets in the world can pay off big for those willing to learn.

Arguably, bitcoin is one of the most
accessible and tradable assets known to the market right now. Unlike its stock
market cousin, just about anyone can get in on the bitcoin exchange and hope to
make money, especially if you’re completely new to trading.

The inverse relationship between trading
savvy and bitcoin dominance is largely due to how the market oscillates.
Bitcoin markets work differently from other markets front he ground up. Meaning
that normal indicators are really all that much help when trying to speculate
on trading bitcoin. Should seasoned traders find it difficult to leave their
ingrained habits by the wayside, they may be doomed to see their profits go the
way of the ghost as well.

Which is where newcomers have a distinct
advantage. Particularly if they can get on with a popular bitcoin trading
platforms early, like front winners https://bitvavo.com/en/, and follow the advice
given to them by the crypto pros. No bad habits to break, and no archaic
methods to revise.

Inventing the Wheel

Newer investors in bitcoin still have quite
a lot to learn, but seem to be more flexible in their methods. Which can prove
to be at their direct advantage. Understanding the volatile oscillation of
bitcoin markets is understanding bitcoin itself.

Where normal market indicators of valuation
and trends can work to a traders advantage. Especially when hoping to catch
markets in predictable patterns, earning traders an inside edge on what to
expect next. However, these same indicators don’t really work in bitcoin
markets as they do in others. Here’s why:

• Bitcoin is decentralized.

This means that there is no real governing
power lording over what investors can, and can’t do with their coin. While this
is largely one of the main benefits to bitcoin, it also means that there is no
system in place to prevent insider trading or bitcoin whales from influencing what the market does
next.

• Bitcoin is still relatively
  new.

Which makes it exciting. Every day, more
people buy and trade bitcoin than ever before. This influences not only the
rate at which new bitcoin is released into the market but also the intrigue of
the coin itself. Users are still learning how it all works, governments have
yet to imposes taxes or sanctions (although this is due to change soon), and
there is high competition between trading platforms to produce the best
software.

• There’s still quite a decent
  amount of hacking going on.

This combined with the mega hacks of the
past, make it that much more difficult to speculate exactly how much bitcoin is
available. Or for users to decide how safe their coin actually is, leading some
to sell at unpredictable times. These factors can severely affect the price of
bitcoin and are incredibly difficult to foresee.

• Bitcoin is becoming more
  user-friendly. 

As different nations adopt the currency as
legal tenders, such as Japan and Australia, demand again increases. As these
places also adopt systems in which make bitcoin more user-friendly and easily
accessible- this also causes prices to surge. But knowing when these
adaptations in technology and legislation are going to happen is anyone’s
guess, and it’s even harder to pin down when popular opinion will adopt the
coin.

• Even the most seasoned
  investors suffer from FOMO.

FOMO, or Fear Of Missing Out, can affect
some of the most seasoned investors in the most standard markets. FOMO in bitcoin markets however seen to affect
decisions at an ever-increasing rate. Largely due to the wild oscillations that
bitcoin has seen, many investors sell at bad times.

• There’s now less confidence in
  Fiat.

The world economy is chaotic at the moment.
With the pressures in the EU felt by issues from Brexit and troubles in
Germany, as well as the US-China trade war that continues to swell, fewer
people have confidence in fiat. Looking for alternative investments and new
places to make their money.

Teaching Old Dogs New Bitcoin Tricks

Because of these reasons, the value of
bitcoin fluctuates wildly. The markets oscillate in ways that are both
difficult to foresee and near impossible to control. As more traditional
oscillators can build off of tried and true market analysis, bitcoin is much
harder to analyse for patterns. Meaning that many skilled investors will need
to amend old habits and find new tools.

While it can be done, if you’re new to
bitcoin, but a seasoned pro at investing, it’s still considered wise to use a
trading platform until you feel like you have a good grip on how the market
reacts to subtle changes.