Your Guide to Making Crypto Price Predictions with Technical Analysis

crypto price analysis

Successful cryptocurrency traders don’t get there by luck alone. They use different tools to understand the market and apply their knowledge into trading. One of the most common approaches to making smart price predictions is technical analysis. With this approach, traders study the technical charts and isolate significant trends. This data helps them make smarter predictions.

By using technical analysis, the trader will consider the history of the coin of interest with trading volumes and price charts. There are some key points you need to understand before you can make good use of technical analysis.

4 Keys to Using Technical Analysis for Price Predictions

1. There are no Random Price Movements

SEE ALSO:   NEO price predictions 2018: USD / NEO price today - NEO News Today -Tue Apr 24

The first thing you need to know is that there is no such thing as a random price movement. Most price movements follow either short-term or long-term trends. The coin forms the trend, and the price follows the trend to oppose it. You need to isolate trends and profit from them using technical analysis.

2. Everything Counts

The cryptocurrency market puts everything into consideration from upcoming details, existing details, to previous details. All these variables are integrated into the current cryptocurrency prices. The existing price is always a response to all the details available on the coin. You need to interpret what the price says about the sentiment of the market and use this information to make smart predictions.

SEE ALSO:   Bitcoin Price Today USD - Latest Price Chart Analysis and Bitcoin Price Prediction 2020 - Bitcoin Price News Today -Tue Apr 24

3. The Price Trumps Everything Else

You need to focus on the price of the coin itself and not the variables that led to the price. Supply and demand are variables that will always affect the price of the coin, but many other factors can contribute.

4. History Repeats Itself

There will always be a stimuli-response relationship with traders. You can use this to your advantage in determining the price direction of the market. Traders will act the same way when faced with a situation they have faced in the past.

These are the four keys to understanding technical analysis. Keep them in mind when you’re studying the technical analysis of the market to make better predictions.


Legal Disclaimer: The content of this website (smartereum.com) is intended to convey general information only. This website does not provide legal, investment, tax, etc advice. You should not treat any information on smartereum.com as a call to make any particular decision regarding cryptocurrency usage, legal matters, investments, taxes, cryptocurrency mining, exchange usage, wallet usage, initial coin offerings (ICO), etc. We strongly suggest seeking advice from your own financial, investment, tax, or legal adviser. Neither smartereum.com nor its parent companies accept responsibility for any loss, damage, or inconvenience caused as a result of reliance on information published on, or linked to, from smartereum.com.

SEE ALSO:   NEM Price Prediction 2018 2020 (XEM / USD): Why this cryptocurrency is on the radar of investors for future? XEM Price today -Tue Apr 24

 

Leave a Comment

Get Smart About Crypto!


Promise we won’t spam you!

We Are Hiring

Click here if you would like to join one of the fastest growing blockchain news companies in the world!