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This Value Metric Can Tell Best Times to Buy and Sell Cryptocurrency

When talking simple things with children, use the phrase “not rocket science.”

They have recently been interested in learning about cryptocurrency trading.Due to its high volatility, you may feel like you are trading cryptocurrencies. teeth Rocket science. Prices bounce around … sometimes for no reason at all.

In April, Bitcoin prices reached $ 63,446 per coin. Three months later, the price dropped to $ 29,767. It fell 53% in a short period of time. Two months later, the price bounced back to $ 52,641, up 77% from its July lows.

In my research, I found a value indicator that helps crypto traders find the best time to buy and sell coins.

In this episode of Bull & BearLet’s talk about that indicator and what it is saying right now.

Cryptocurrency value indicators tell a story

Stocks have indicators that notify investors when an asset is overvalued or undervalued. The “value” indicator is one of the six indicators used in the Green Zone Rating System.

The values ​​used in cryptocurrency trading can indicate when it is best to buy or sell.

Value metric trends show buypoints and cellpoints

There is a ratio used to indicate that a cryptocurrency is overvalued or undervalued. This is done by taking the market capitalization of Bitcoin and dividing it by the realized capital.

This gives you the market value / relative value ratio (red line in the graph above), or MVRV.

The MVRV ratio is solid in telling crypto investors when to buy and when to leave.

We’ll cover all of this ratio and how to use it. It also describes what the ratios represent for some of the most popular cryptocurrencies today.

Bull & Bear

Led by Adam O’Dell and a team of financial journalists, traders and professionals Money & Market It provides the information needed to protect nest eggs, increase wealth and protect financial well-being.

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Matt Clark, CMSA®
Survey analyst, Money & Market

Matt Clark is a research analyst Money & Market.. He is a Certified Capital Markets & Securities Analyst at the Corporate Finance Institute and In search of alpha..Before joining Money & Market, He has been a journalist and editor for 25 years, responsible for college sports, business and politics.



This Value Metric Can Tell Best Times to Buy and Sell Cryptocurrency Source link This Value Metric Can Tell Best Times to Buy and Sell Cryptocurrency

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