APPLICATION OF TECHNICAL ANALYSIS ON THE CRYPTOCURRENCY MARKET

Authors

  • I.V. Burtnyak Vasyl Stefanyk Precarpathian National University, Ministry of Education and Science of Ukraine, Department of Economic Cybernetics, Shevchenko St., 57, Ivano-Frankivsk, 76009, Ukraine, tel.: +380979862632 https://orcid.org/0000-0002-9440-1467
  • O. Y. Fufalko Vasyl Stefanyk Precarpathian National University, Ministry of Education and Science of Ukraine, Department of Economic Cybernetics, Shevchenko St., 57, Ivano-Frankivsk, 76009, Ukraine, tel.: +380671791747 https://orcid.org/0009-0009-9985-1246

DOI:

https://doi.org/10.15330/apred.2.19.106-113

Keywords:

Cryptocurrency, financial sector, securities market, pricing, cryptocurrency market, technical analysis

Abstract

The article substantiates the possibility of using technical analysis to research the cryptocurrency market. The work is aimed at researching the market of digital assets. The question of researching the development of the cryptocurrency market is a new scientific direction. The study of the prospects for the use of virtual money remains relevant, because with the proper improvement of technologies, legislative regulation and improvement of the relevant infrastructure, cryptocurrency will occupy a significant place in the everyday life of people, which will make it possible to reduce the circulation of cash and thereby stabilize the monetary system in general. The topicality of the topic is also due to the fact that currently the question of the feasibility of using crypto-assets remains unresolved, and cryptocurrency has taken a significant place in the brokerage market. The study of the cryptocurrency market, its regulation, influence on the financial systems of the countries of the world is gaining relevance these days. Investing in cryptocurrency is accompanied by significant risk and forces the investor to buy and sell cryptocurrency at the wrong time. Technical analysis is based on the study of historical price movement data, the identification of recurring patterns and the identification of patterns that allow predicting price changes in the near future. By implementing the application of technical analysis, investors can predict a favorable moment for buying or selling a certain coin. Technical is often used to assess the possibility of investors' reaction to what is most likely to happen in the cryptocurrency market in the future. With the help of technical analysis, it is possible to predict the state and dynamics of the cryptocurrency market, as well as make a forecast regarding the trends of changes in the pricing of cryptocurrencies. Technical analysis indicators are the result of mathematical processing of statistical data of price dynamics. One of the main aspects of technical analysis is subjectivity, the analyst analyzes data on price behavior in the past and predicts pricing for the future, which enables a significant part to make a trading decision. Techniques of technical analysis are a key tool for market analysis, which allows you to understand when and which assets should be bought and when to sell.

Author Biographies

I.V. Burtnyak , Vasyl Stefanyk Precarpathian National University, Ministry of Education and Science of Ukraine, Department of Economic Cybernetics, Shevchenko St., 57, Ivano-Frankivsk, 76009, Ukraine, tel.: +380979862632

D. Sc. (Econ.), Professor

O. Y. Fufalko, Vasyl Stefanyk Precarpathian National University, Ministry of Education and Science of Ukraine, Department of Economic Cybernetics, Shevchenko St., 57, Ivano-Frankivsk, 76009, Ukraine, tel.: +380671791747

Postgraduate student

References

1. “Blockchain & crypto.” Academy.binance, academy.binance.com. Accessed 7April 2023.
2. Brown, G., & R.Whittle. Algorithms, Blockchain & Cryptocurrency. Emerald Publishing, 2020.
3. Burtnyak, І., and A. Malytska. “Simulation of stock market prising using the model CEV.” The actual problems of regional ecomomy development, 2021, pp.41-47
4. Frankenfield, J. Consensus Mechanism (Cryptocurrency), 2021.
5. Frankenfield, J. Proof of Work (PoW), 2021
6. Kim, G. Y., Paik, J. Y., Kim, Y., & E. S.Cho. “Byte Frequency Based Indicators for Crypto-Ransomware Detection from Empirical Analysis.” Journal of Computer Science and Technology, no. 37(2), 2022, pp.423-442.
7. Lanin, D. G., & A. V.Krasavin. “Developmental Trends and Ways of Improving the Process of Designing Technically Complex Energy Facilities.” Power Technology and Engineering, no.54(3), 2020, pp. 375-381.
8. Nalawade, A. “Bitcoin Has Already Won, Soon The Price Will Reflect That.” Nasdaq, www.nasdaq.com/articles/bitcoin-has-already-won-soon-the-price-will-reflect-that-2021-09-20. Accessed April 7, 2023
9. Patel, N. P., et al., “Fusion in Cryptocurrency Price Prediction: A Decade Survey on Recent Advancements, Architecture, and Potential Future Directions.” IEEE Access, vol. 10, 2022, pp. 34511-34538,
10. Resta, M., Pagnottoni, P., & M. E. De Giuli.“Technical analysis on the bitcoin market: trading opportunities or investors’ pitfall?” Risks, no.8(2), 2020, pp. 44.
11. Shvets, S. “The golden rule of public finance under active monetary stance: endogenous setting for a developing economy.” Investment Management and Financial Innovations, no.17 (2), 2020, pp. 216-230. doi: 10.21511/imfi.17(2).2020.17
12. Stevenson, S. L., & B.Tsend-Ayush. “Momentum trading in cryptocurrencies: Short-term returns and diversification benefits.” Economics Letters, 2020.
13. Versteeg, K., Bigelow, P., Dale, A. M., & A. Chaurasia. “Utilizing construction safety leading and lagging indicators to measure project safety performance: A case study.” Safety Science, no.120, 2019, pp. 411-421.
14. Younsi, M., & A.Nafla. “Financial stability, monetary policy, and economic growth: Panel data evidence from developed and developing countries. “Journal of the Knowledge Economy, no. 10 (1), 2019, pp.238-260. doi: 10.1007/s13132-017-0453-5

Downloads

Published

2023-06-06

Issue

Vol. 2 No. 19 (2023): THE ACTUAL PROBLEMS OF REGIONAL ECONOMY DEVELOPMENT

Section

Development of financial-credit and insurance market of Ukraine

License

Authors who publish with this journal agree to the following terms:
    1. Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution NonCommercial NoDerivs 4.0 Unported License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
    1. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
  1. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access)