Financial markets offer different asset price forecasting methods and the cryptocurrency market is not an exception. So if you want to make a long-term Bitcoin price prediction 2025 and decide whether to hold assets or sell them, this article is definitely worth reading!
Statistical prediction method
The statistical method is probably one of the most popular ways of making a Bitcoin price prediction 2020. A trader or programmed system gathers the maximum quantity of market data and structures it into certain arrays. With the help of a statistical component takes place distribution of system parameters. Having such data it’s possible to calculate mathematical models’ effectiveness.
Sounds like abracadabra? Well, to put it simpler, parameter statistics is collected and the most profitable models are chosen. These models are systemized according to specific features and form trading systems, which are then used by trading experts. Such an approach helps them to make a crypto price predictions and to decide what to do with assets.
If the result starts to deteriorate, it’s necessary to recalculate parameters and to revise working models.
The statistical method of Bitcoin price prediction 2025 allows with the help of a set of parameters to determine which models are working, and which – don’t. Quite often traders mention trading results along with statistics of mathematical models. Every model has its own performance statistics.
Statistical cryptocurrency price prediction method is rather simple. A trader should only have several models and to statistically fixate the results of the work. And then to select parameters for correcting mathematical models to improve performance.
Let’s say you gather data on the moving average or, which is more common, on the intersection of two moving averages. According to statistics, when checking this strategy in a one-year period, the system shows a positive performance with a 50% profit.
However, this evaluation of the model’s work is rather superficial because it’s important to correct parameters. For example, when a 7-day and 14-day moving averages intersect, the result equals 50% but if to change parameters of one of the moving averages on a 21-day, the result may improve on 10%. Changes in the parameters may eventually influence Bitcoin price prediction 2020.
It’s also possible to add a volatility parameter. When it is increased, profitability may also become higher. Thus, when gathering statistics on separate models and combining system parameters it’s possible to make a Bitcoin price prediction today usd or of any other currency.
Systematic prediction method
Basically, all methods predictions can be called systematic because all of them are based on a certain trading system. However, we’d like to distinguish this one because the systematic prediction method includes not only a trading model but also a system of risk and money management.
This method of Bitcoin price prediction 2025 is the most convenient for manual traders. It consists of building certain trading models and of position management. In other words, the overall trading situation also influences the decision. For example, when a trader uses bull triangles breakdowns.
At every breakdown the trader opens a new position. But any decision on the position also depends on the size of the deposit, and current market situation (bear or bull one). Unlike the statistical Bitcoin price prediction 2020, where everything is well-calculated, systematic prediction method takes into account the general image of a trading account, market or cryptocurrency as a whole, and not only realization of a trading model.
Thus, you get a more comprehensive picture of a bitcoin price and can keep an eye on multiple variables.
Program prediction method
If you are a trader, who is also an expert in software development, you’ll definitely like this Bitcoin price prediction 2020 method. Traders-developers create a program that generates mathematical trading models either under their guidance or on its own and then shapes an optimized trading system.
If the first two methods of Bitcoin price prediction 2025 don’t require any side programs, this one is based solely on computer software. There is a huge variety of programs, which create trading models based on market data. These programs include trading robots and algorithms.
Unfortunately, this prediction method can’t be called entirely reliable and profitable because behind any program is a trader or programmer who created it. Program Bitcoin price prediction 2020 method is good in showing an accurate trading result and in highlighting which parameters should be optimized or excluded.
Program Bitcoin price prediction today usd methods also include all sorts of optimizers and statistics collection based not only on parameters and trading models but also on the trading result. For example, during optimization the system may recommend you not to trade at a certain time because statistics show that your trading system usually experienced losses at that period.
Another benefit of this Bitcoin price prediction 2025 method is a high accuracy of results and a rather low probability of making a mistake during calculations.
If you want to know more about bitcoin price prediction and it's methods, follow this link - https://safetrading.today/blog/how-to-predict-bitcoin-price-advice-from-professional-trader/