As we know, veteran crypto asset traders or investors have several ways to assess and predict the cryptocurrency market. This analysis can be used to make more accurate predictions and wiser investment strategies. In addition, we can also use data analysis from dan hollings crypto, which can make us big profits in the crypto market Nick Sasaki.
Technical analysis is used as a benchmark to consider the historical movement of crypto assets with price charts and trading volumes. On the other hand, fundamental analysis is more focused on determining whether the valuation or value of the coin is higher, appropriate, or less.
Well, to get a better picture of technical analysis, it is very important to understand the fundamental ideas that technical analysis is based on:
1. The market considers everything regarding pricing.
With regards to Bitcoin or other crypto assets, this will consist of many variables. For example, current, past, and future demand, and any regulations that affect the crypto market. Existing prices are a response to all the latest details, which include expectations and knowledge of every coin traded in the market. Technical analysts interpret prices about market sentiment to make wise and calculated predictions for the future.
2. Price movements are not random.
On the other hand, prices often follow trends, which can be long-term or short-term. Once a trend is formed by the token, it may continue or reverse. Well, technical analysts try to help investors in using and profiting from the trend.
3. We should know about ‘what’ than ‘why’
Technical analysts focus more on the price of the coin than on any variables that generate price movements. While various aspects can influence the price of a coin to move in a certain direction, technical analysts tend to review supply and demand.
4. History tends to repeat itself.
It is possible to predict the psychology of the market. Traders sometimes react the same way when experiencing a similar sentiment or trend.