This post, “Crypto Chart Analysis 101”, is meant to introduce the basics of chart analysis which are very important when trying to understand the day to day price movement of an asset.
As of now, most crypto assets have no real basis for fundamental analysis other than broad forecasts vulnerable to many assumptions. Believe me… CoinSavage isn’t above an attempt… but in an asset class with a lack of fundamental metrics, technical analysis takes priority. When I say technical analysis, I mean chart analysis.
Price action always matters. Market (any market) participants are all human (or programed by humans). We all have the same brain that our ancestors evolved for us (thanks!). We all have deep seeded emotional triggers. We are all driven by some primal level of Greed and Fear.
At CoinSavage, Greed and Fear are our business… kidding… but kind of not kidding.
The great thing about charts are they are a map of that market greed and fear. Look at a chart… do you see the peaks?…that is where greed peaked. Do you see the troughs?… that is where fear peaked. Always remember the saying “buy when there is blood in the streets”, and conversely “Pigs get fat, hogs get slaughtered”.
In a market such as cypto-assets, where emotion is driving the price movement, charts are the best way to be predictive… to see that buying or selling opportunity before it passes you by.
Still not a believer? Then why does the chart below have such perfect lines?? I can easily draw straight lines from top to top, and from bottom to bottom. Don’t take my word for it, just look…
The space between the “Max Greed” (green line) and “Max Fear” (red line) is known as a “channel”.
Expect Bitcoin to stay in this channel until something materially bullish or bearish occurs.