This here is a quick visual on how the percentage change correlates to price action. For my example I have used a 20% change over the price action of BTC over the past year.
We can clearly observe that less money is required to make the same percentage as the price decreases. For example it takes $4000 to move from $20000 to $16000, but only $3200 to move from $16000 to 12800 even though both are a %20 change.
This is always some thing to keep in mind when analyzing a chart, and before investing because it can help you visualize potential price levels and mitigate risk.
Thanks for reading!
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Please leave a comment with your thoughts and feedback!
*This information is not trading advice and is to be used for educational purposes only!
We can clearly observe that less money is required to make the same percentage as the price decreases. For example it takes $4000 to move from $20000 to $16000, but only $3200 to move from $16000 to 12800 even though both are a %20 change.
This is always some thing to keep in mind when analyzing a chart, and before investing because it can help you visualize potential price levels and mitigate risk.
Thanks for reading!
If you like this educational piece please hit the LIKE button!
Please leave a comment with your thoughts and feedback!
*This information is not trading advice and is to be used for educational purposes only!