Breakthrough in Cryptocurrency Market Forecasting: A New Approach Using Leading Data Analysis
Date: 2023-10-19 Author: Dima Zakharov Categories: CRYPTO PAYMENTS
Challenges of Traditional Forecasting in Cryptocurrency Markets
Today, the cryptocurrency market is experiencing an extended bearish trend, which has a significant impact on traders. Global liquidations, price instability in major cryptocurrencies, and market uncertainty lead to losses in millions of dollars, and recovering those funds can be a daunting task. In this scenario, it becomes critically important to study and apply new methods of analysis that can provide a more accurate forecast of cryptocurrency prices. In this context, 1ex Trading Board has introduced an innovative approach to market analysis based on leading data.
Leading Data: The Key to Forecasting
Ilya Shirokov, Chief Product Officer (CPO) of 1ex Trading Board, discussed how the approaches to forecasting in traditional and cryptocurrency markets are largely similar but highlighted a crucial difference between long-term and short-term forecasting.
Long-term forecasting is more or less straightforward, typically relying on fundamental analysis and statistical calculations. However, short-term forecasting, which is of greater interest to most traders, is much more complex. It depends on the competence and professionalism of the analyst (trader) and their technical equipment. Here, factors such as news analysis, volume-related strategies, indicators, and machine learning play a crucial role.
Research shows that most cryptocurrency traders currently consider only a small fraction of the factors that can influence the market. However, there are many more factors to consider, and it's essential not to overlook the impact of news events and order book behavior.
Advantages and Disadvantages of Existing Forecasting Methods
One of the main advantages of existing forecasting methods is their clarity and accessibility for learning. Many companies and individuals are involved in financial management, and the existing methods offer extensive opportunities for education and practice.
Nevertheless, the shortcomings of traditional methods become evident in a bearish market. The accuracy of asset price predictions is significantly compromised, which can lead to substantial losses. This is where the new approach based on leading data comes to the rescue.
The Future of Forecasting in the Cryptocurrency Space
1ex Trading Board presents an innovative approach to forecasting cryptocurrency market movements based on leading data. This approach provides traders with the capability to make more precise predictions about cryptocurrency prices in the next 10-15 minutes. This becomes particularly relevant in the face of market instability and uncertainty.
