How To Predict Crypto Prices. The creation of financial bubbles is deeply rooted in speculators’ psychology. The year 2020 was good for cryptocurrencies.
If you know the appropriate analysis to use, then gauging prices can be possible. But before we can do anything with the time series, we have to make sure that the time series is stationary. The creation of financial bubbles is deeply rooted in speculators’ psychology.
It might not be apparent for someone, especially to know how to do so.
If the whales are bullish on a cryptocurrency and hint at increasing their investment portfolio, they can predict prices to rise with a high probability. Using those models, we can now understand the economics of mining and through them, detect crypto bubbles as well. Unlike the technical method, it’s fundamental, meaning there’s a variety of skills necessary because it’s based on political and economic occurrences and companies’ figures. To meet the stationary requirements, a time series must have constant mean, constant variance, and constant autocorrelation.