How To Successfully Trade News In Crypto

Zinger Key Points
  • A trader points to the diminishing impact of repetitive news on markets.
  • He analyzes how good news in bearish markets and bad news in bullish ones impact prices.
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Prominent crypto trader CryptoCred shared insights on how news influence market trends and how traders can take advantage of that.

What Happened: CryptoCred noted that the impact of news on the market tends to decrease over time, especially if it’s repetitive information. “Telegraphed news,”or news that is expected to happen, is priced more efficiently than unexpected events. Importantly, the market’s reaction to the news often provides more insight than the news itself.

The trader also shared a rough blueprint for understanding market trends based on the absorption of good or bad news in bullish or bearish markets.

According to CryptoCred, bad news absorbed in a bullish market can signal a trend continuation. So does good news absorbed in a bearish market. Conversely, bad news absorbed in a bearish market and good news absorbed in a bullish market can signal a trend reversal.

Also Read: CPI Data, Jerome Powell, Ethereum ETFs: What Bitcoin Traders Are Watching This Week

Why It Matters: Crypto Cred’s insights highlight the importance of understanding market reactions to news events in predicting market trends. His observations work especially well if there's a clear preceding pattern.

For instance, a series of bad news leading to a downward trend, followed by bad news leading to an upward trend, could suggest a change in market direction.

This is particularly relevant for Bitcoin BTC/USD traders watching macroeconomic indicators and events as key trading variables.

Price Action: In the past 24 hours, BTC is trading 2.2% higher at $58,630.

What’s Next: The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.

Read Next:

This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Image created using artificial intelligence with Midjourney.

Market News and Data brought to you by Benzinga APIs
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