Markets
How to Trade Cryptocurrency News Successfully — TradingView News
Prominent Cryptocurrency Trader Crypto credit shared insights on how news influences market trends and how traders can benefit from it.
What happened: CryptoCred noted that the impact of news on the market tends to diminish over time, especially if it is repetitive information. “Telegraphed news,” or news that is expected to happen, is priced more efficiently than unexpected events. It is important to note that the market’s reaction to news often provides more information than the news itself.
Trading News:
1. News generally has a diminishing impact on the market over time, especially if it is the same piece of information (ETF flows, GBTC on Coinbase, German government, Gox, SEC crusade, etc., which eventually becomes obsolete and priced in).
2. Telegraphed news is evaluated more efficiently than…
The trader also shared a rough model for understanding market trends based on the absorption of good or bad news in bull or bear markets.
According to CryptoCred, bad news absorbed in a bull market can signal a continuation of the trend. The same goes for good news absorbed in a bear market. Conversely, bad news absorbed in a bear market and good news absorbed in a bull market can signal a trend reversal.
Read also: CPI Data, Jerome Powell, Ethereum ETFs: What Bitcoin Traders Are Watching This Week
Because matter: Crypto Cred’s insights highlight the importance of understanding market reactions to news events in predicting market trends. His observations work especially well if there is a clear pattern beforehand.
For example, a series of bad news leading to a downtrend, followed by bad news leading to an uptrend, could suggest a change in market direction.
This is particularly relevant for Bitcoin traders who observe macroeconomic indicators and events as key business variables.
Price Action: Over the past 24 hours, BTC has increased by 2.2%, settling at $58,630.
What’s next:Bitcoin’s influence as an institutional asset class is expected to be explored in depth at Benzinga’s upcoming Future of Digital Assets event on November 19.
Read also:
- What Technical Analysis Says About Bitcoin’s Latest Crash
This content was produced in part with the help of artificial intelligence tools, and was reviewed and published by Benzinga editors.
Image created using AI with Midjourney.
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