FUD, Total Supply, Technical Indicators

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„The cryptographic market suffers from fear and uncertainty (FUD), despite the increase in acceptance and strong technical data“

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The cryptocurrency market has been afflicted by fear and uncertainty in recent months and many investors have questioned the long -term feasibility of digital currencies. Despite the growing introduction of cryptocurrencies and the growing price campaign, there are still concerns that have contributed to this feeling.

A common topic below Fud (fear, uncertainty and doubt) is the perceived „general care“ of cryptocurrencies. Some market participants believe that a significant part of the entire cryptocurrency supply with various means such as the extraction hardware errors, the bags have collapsed or other events have been eliminated by circulation. As a result, it is claimed that there are not quite new coins available to increase prices and create a sensation of scarcity.

However, this perspective is questioned by technical indicators that indicate that the entire supply of cryptocurrency is still relatively high compared to the number of coins. The most remarkable example of this is the metric of „overall supply“, which estimates that about 40-50% of all Bitcoins was burned or removed from the circulation since it was founded.

Another problem that contributes to Fud is the lack of transparency and regulation in the cryptocurrency area. The constant flow of new coins in the circulation of the market in combination with the decentralized nature of cryptocurrencies can create uncertainty about long -term perspectives for individual activities. In addition, regulatory changes and updates have been welcomed with widespread fear and uncertainty, which makes some investors ask if the market is „safe“ or not.

Despite these concerns, the technical indicators offer a more optimistic perspective on the future of cryptocurrency markets. For example, the relative resistance index (RSI) has ensured up to the top in many cryptocurrencies, which indicates a strong purchase pressure of the bulls. In addition, the indicator of the average sliding convergence (MacD) suggests that prices movements can turn and move in the opposite direction.

The „purchase signal“ is also strengthened by the growing number of institutional investors who enter the market. Since more established players connect to the struggle, they bring with them their skills and resources, which can help increase prices and create a feeling of trust among investors.

Although Fud remains an important problem on the cryptocurrency market, it is not necessarily an insurmountable problem. By focusing on technical indicators such as the overall offer, RSI, MacD and institutional investors, investors can better understand the dynamics of the market and make more valid decisions on where their capital should be assigned.

Used technical indicators:

• Total offer (TSS): estimates the number of coins that have been burned or removed from circulation since Bitcoin was created.

• Relative resistance index (RSI): measures the size of the price movements, so the values ​​above 70 conditions and obsolete values ​​lower than 30 indicate the large conditions.

• Convergence (move medium convergence -diergence): shows trends in the price movement by calculating the difference between two mobile mobile values.

sources:

• Total care estimates from the cryptous

• RSI calculations with API Quandl

• Macd calculations with API Quandl