Bitcoin and S&P500! Why do we choose them for analysis? They are TOP indicators of their markets: the cryptocurrency and stock markets.

We are not going to talk about a local trend, only a long-term trend. The long-term trend is what we should pay attention to. It helps to choose the crypto/stocks to trade, the side in which to open the trade, it’s about statistics – the basis of trading.

A TREND is the direction of price movement. There are three of them: uptrend, downtrend, and consolidation.
1. Uptrend is when price rises makes higher highs and lows. In short, price rises higher and higher.
2. Downtrend, as you have already figured out, is when price makes lower highs and lows. Wherever you buy, the price will continue to fall, because the long term trend is downward.
3. Price consolidation is when the price does not make a clear trend, being in the price range.

We can see from the charts that Bitcoin has been making higher highs(HH) and higher lows (HL) for 10 years and this is an UPTREND trend. So the S&P500 (includes the 500 largest U.S. companies). Over 80 years of an UPTREND. From 1942 to 2022 it growth from $9 to $4,400.

Even if you bought Bitcoin or S&P500 at the highs (ATH), in 1-2 years they are back to their previous prices. Do you remember how Bitcoin hit $20k in 2017 and most newbies bought it? Well, at the end of 2020, it’s back to that price.

Not only traders, but investors pay attention to the trend and growth of the asset. In the cryptocurrency market growing coins
are Bitcoin ( BTC ), Ethereum (ETH), Binance Coin (BNB), and in the stock market it is most modern giants, especially technical ones: Apple ( AAPL ), Alphabet ( GOOG ), Microsoft ( MSFT ), Tesla ( TSLA ), Berkshire Hathaway (BRK-a), etc.

When you are choosing a crypto or stock to trade, pay attention to the trend of the asset itself and the market as a whole. It’s a small tip, but be sure it will give you +20-30% to your trading profitability.

“If a stock or crypto rises over the long term, it is very likely to continue to rise. If a stock or crypto falls over the long term, it is very likely it will continue to fall.”

If it was interesting and you still have questions write in the comments!

Friends, press the “like” button, write comments and share with your friends – it will be the best THANK YOU.

P.S. Always do your analysis before making a trade