Which scale, log or linear, is more commonly used in analyzing cryptocurrency price movements?

1 answers

• Olga PetrenkoJun 11, 2022 · 3 years ago
  In the analysis of cryptocurrency price movements, both log and linear scales are commonly employed. The log scale is often favored when examining long-term trends and exponential growth patterns. It compresses the price data, making it easier to identify percentage changes and visualize overall trends. On the other hand, the linear scale presents the price data in a straightforward manner, displaying the actual price values without any compression. This scale is useful for short-term analysis or when precise price levels are of greater importance. Ultimately, the choice between log and linear scales depends on the specific analysis objectives and the preferences of the analyst.
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