What are Trading Patterns in Cryptocurrency Trading?

Fundamental analysis is one of the crucial things to reaching success in trading cryptocurrency. Although fundamental analysis is not only on the crypto exchange, its use for cryptocurrencies requires a different approach. In the case of cryptocurrencies, their value can be measured by considering their possible uses as well as the strength of their community.

Let’s use Bitcoin as an example. And for safe and legit transactions, make sure you connect with reputable crypto brokers US. Now, learn how Bitcoin differs from traditional money:

  • Its fixed supply of 21 million coins makes it unique.
  • We should also point to its ability to make international payments more accessible.

These aspects may eventually lead to an increase in its acceptance. And as Bitcoin adoption grows worldwide, its value may rise as well.

Another factor that determines the intrinsic value is the global events associated with cryptocurrencies, such as the Bitcoin halving. Announced and expected events can affect the price of a coin. Major events in the world of cryptocurrencies give rise to certain trading patterns, which can be seen on a crypto chart.

Sporadic and unannounced events can also have the same effect. We dare say that unplanned events, such as the government’s decision to deregulate Bitcoin, could further impact the price. Although these events are almost impossible to predict, they do happen, and you need to be prepared.

Technical Analysis in Crypto Trading

Technical analysis is appropriate for short-term trading as price correction takes days or even hours. However, it can still be used for general long-term bullish and bearish trends. Experienced traders are engaged in pattern trading. To make money with the help of technical analysis, you need to learn to distinguish specific figures on the chart:

  • head and shoulders;
  • triangle;
  • double top;
  • double bottom;
  • rising wedge;
  • etc.

Cryptocurrency trading is a fairly complex science, especially when it comes to using technical analysis. Most novice traders use a balance between fundamental and technical analysis, and in the process of practice, they go deeper into the study of patterns.