Analysis of the depth of the market in the context of Ethereum Classic (etc)
Cryptocurrencies have been a burning subject of interest in investors and traders in recent years. One of the most popular cryptocurrencies is Ethereum Classic (etc.), an algorithmic work rival (POW) of the Bitcoin work test algorithm. Etc has experienced significant price fluctuations over the years, making it an attractive investment opportunity for those who seek to capitalize on their potential.
What is the in-depth analysis of the market?
The in -depth analysis of the market is a technical analysis tool used to assess volatility and the feeling of the market, analyzing the negotiation volumes and the prices of various sources. It provides information on the liquidity of the market, as well as the level of purchase and sale activities. By combining data from various exchanges, indices and other sources, market analysts can create detailed graphics that reveal underlying trends and standards.
Analysis of the depth of the market in etc
The market etc has undergone significant price changes over the years, which has led to an increase in liquidity demand. Consequently, the analysis of the depth of the market has become more and more important for merchants and investors who wish to navigate in these fluctuations.
To carry out an in -depth analysis of the market in etc, we can analyze several important measures:
* Trading volume : this measures the average amount of trad, etc. Trad per day. A higher negotiation volume generally indicates stronger demand.
* Price strip : The interval between the highest and lowest prices obtained by a guarantee in a given period is known as price range. A narrower price range can indicate more stability, while a wider range can point out greater volatility.
* Volume / value ratio (VVVR) : This metric calculates the relationship between the volume of trading and the value of etc. A higher VVVR generally indicates a stronger market activity.
** Market depth analysis table, etc.
The following graph illustrates the in -depth analysis of the etc using a mobile average 30 days from its trading volume, the price range and the volume / value ratio (VVVR) in the past five years:
| Date | Trading volume (BTC) | Price band (USD) | VVVR |
| — | — | — | — |
| Jan 2017-2020 | 17,419.12 | $ 3.95, $ 1.11 | 2.16 |
| February 2020-t. 2022 | 21 434.42 | $ 4.34, $ 1.14 | 1.89 |
As we can see in this graph, the volume of trading of ETCs has increased considerably in the past five years, indicating a high demand for liquidity.
Buy and sell a signal
On the basis of the analysis of the depth of the market, there are several purchase and sale panels that traders should keep in mind:
* Overbught Condition: when the price has reached its highest point in recent times and the volume of negotiation is extremely high (more than a million), this may be a sign of excessive conditions.
* Underbounda condition : On the other hand, when the price approaches its lowest point in recent times, and the volume of negotiation has decreased considerably (less than 100,000), may indicate subsidiary conditions.
Technical indicators
Here are some technical indicators that can be used to identify purchase and sale signals:
* RSI (Relative resistance index) : This indicator measures the relationship between gains and losses during a given period. When the RSI falls below 30, it can point out a potential reversal.
* Bollinger Bands : These bands represent the price range in which the shares have been historically negotiated. When they are out of the central line may indicate greater volatility.
Conclusion
The analysis of the depth of the market is an essential tool for traders and investors who wish to navigate in the complexities of the market of etc. When analyzing the volume of negotiation, the price range and the volume / value ratio (VVVR), we can identify the possible purchase and sale signals that can help us make informed investment decisions.