Like any stock or market, rising prices are celebrated, but a bull run is two-sided.
On the one hand, a massive rise in value makes some people incredibly rich. On the other hand, it could lead to massive correction where a large amount of people start to sell their stock.
When that happens, the price of the commodity being traded plummets in value. For Bitcoin, that could mean a chain death spiral.
Luckily we live in the digital age of mobile apps and Blockchain technology. Some very smart developers have created an application which uses computational learning power to scan Bitcoin markets, news and social media platforms to signal any potential market crashes in the future.
According to RT, the app Bitcoin Bubble Burst provides real-time price change alerts to users by using algorithms based on Bitcoin price change data. Combined with news and social media chatter, they hope to serve meaningful advice to users.
Potential to fail
While this app and many like it will no doubt be useful tools, there could be some potential pitfalls. A swathe of bad news reports and negative sentiment on social media could trigger sell-off messages on apps – leading to the very situation they are trying to predict…
Read Full: New App to Signal Start of Bitcoin Crash