CoinGlass and CoinMarketCap are platforms for professional analysis. They focus on providing global users with accurate and real-time cryptocurrency market data and analysis services.
This enables users to make smart investment decisions, reduce risk and achieve higher returns.
Cryptofarm offers you online and private courses that show you how to use the most important indicators for your investments.
The link will take you directly to my website.
The following is a brief overview of some of the most important indicators:
Liquidation HeatMap
In simple terms, it predicts the price levels at which large-scale liquidation events may occur.
A liquidation event occurs when a trader's positions are closed due to price fluctuations and the balance of their margin account is insufficient to cover the open positions. To protect both traders and exchanges from further losses, most exchanges offer a liquidation level, i.e. the price at which leveraged transactions are forcibly closed.
Fear and Greed Index
Why measure fear and greed?
Behaviour in the crypto market is highly emotional. People tend to get greedy when the market goes up, leading to FOMO (Fear of missing out). Often, investors also sell their coins in an irrational reaction when they see red numbers. The fear and greed index tries to protect investors from their own emotional overreactions.
There are two simple assumptions:
extreme fear can be a sign that investors are too worried. This could be a buying opportunity.
If investors get too greedy, it means a market correction is on the way.
What is the Bitcoin Rainbow Chart Indicator?
The Rainbow Chart is a long-term valuation tool for Bitcoin. It uses a logarithmic growth curve to predict the potential future price direction of Bitcoin. The indicator overlays the logarithmic growth curve with rainbow-coloured bands, attempting to highlight market sentiment at each rainbow stage as the price moves through them. This way, potential buying or selling opportunities are highlighted. Like all charts on CoinGlass, the rainbow chart does not constitute investment advice. There is no guarantee that past performance within the rainbow will continue into the future. However, to date, the Bitcoin price has remained within the rainbow bands of the logarithmic growth channel.
Bitcoin & Ethereum Returns
Since 2011, the cumulative growth of Bitcoin has exceeded 20,000,000%, far exceeding the cumulative growth of 541% for the Nasdaq 100 Index and 282% for the major US stock indices.
Looking at annualised returns, Bitcoin's return is 230%, which is ten times higher than the second-best performing asset class, the Nasdaq 100 Index. Over the same period, large US equities returned 14% annually, high-yield bonds grew 5.4%, and gold returned 1.5%.
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