Topic: Does technical analysis have any value for Bitcoin? (Read 419 times)

I sometimes do, for fun. It's exciting to see what other people see in their crystal balls.
The thing with TA is that before it happens TA can be reshaped to show what you want it to show and once it happens it can be shaped to prove that you were right.
I also like TA because when you see the majority waiting for something to happen it doesn't happen. Like when we were falling below 500 USD people were saying it's the end of Bitcoin and that we're going to 0 now, but we didn't, just like last year people were saying we're going back to 1k and we didn't.
You can quote me on it, but I believe we're never going to see sub 1k again. This is all the TA that I need.

Well, technical analysis might not give a hundred percent accuracy, it still provide help in decision making while trading especially in knowing when to do enter and make exit points. This trading strategy is employed to evaluate investments and evaluate trading opportunities using history or past trading activities that can be seen on charts. Its nature of predicting security future price movements based on past patterns of price movements using both behavioural economics and quantitative analysis, it provides data that willl be use by traders to identify profit.

I don't follow BTC technical analysis and charts, they don't make any sense in crypto world. BTC has its own mood of going up and down which no TA and and chart can predict. I never do day trading thats also one reason of not following TA and charts.

I use TA as it was supposed to for investors. I use daily and weekly charts and it's all good there. Now if you trade the 15 minute or hourly you gamble most of the times.

More often than not it is better to use fundamentals rather than technical analysis. Technical analysts are like fortune-tellers, they often go wrong. Or they are always right because they are always vague. They do not tell you exactly what will happen really. They will just tell you all the possibilities that there is no way for them to go wrong.

I believe that TA's being given out is just a piece of sweet-talking for you to buy their bitcoins especially in price dumps and pumps. I don't follow and I don't have a plan to follow anyone TA I will follow my guts and either lose or win I'll be happy with it.

This question is actually asked in many different assets that are tradable, whether its stocks, bonds, commodities, metals, indices, etc. And the answer is always the same.

Technical analysis is not a very good indicator of predicting price movement but it's the one with most success either way because it's what everybody uses these days. Most can't trade with fundamentals unless they got some insider scoop or are taking long term positions.

But with technical analysis everybody uses the same tools and indicators so you can tell where there might be a reaction since most people are looking at the same thing. Like when $6000 broke last year, everybody went short because it was important resistance.

Then there are times when you can be the smart trader and go against the too technical traders and trap them. This happens with Bitcoin a lot and it's usually those SFP trades which seem to have a lot of traps especially on the daily charts.

So it's not a useful tool to use but it's also the best of the worst out there. You just need to find a way to make profit off it.

Charts are mere sources that has been recorded periodically. This helps in price prediction with comparison, also following the charts we can't make buys or sells because we don't know whether the market is moving on the technical pattern or it is functioning over the manipulation.

Everything we do with cryptocurrency is upon trust, if our prediction coincides we get profited and if we lacked in accuracy of prediction we need to hold until the expectation is achieved.

Chart can be a good basis if you do understand the market fluctuations, when you are willing to take the risk and you have the nerve to follow
your instinct. Understanding the situations and how the hype brings movements once news being broadcast though is unpredictable by any charts
since the behavior of the market always depends on how traders and investors react either pump or dump trend.

Sometimes yes, sometimes not, technical analysis must be accompanied by fundamental analysis so that the results given will be more accurate. But sometimes they only give false signals that make us a loss and wasted time. You better learn for yourself how to analyze Crypto price movements in the market.

Charts do help at some point. It makes you more confident about your investment short term but of course it all depends how you will use your coins. For long term, charts does become more redundant because of how Bitcoin moves and how volatile it is. Charts cannot tell the up coming news, hypes, or any kind of factors that would affect Bitcoin. It does help, but I still wouldn't fully trust those charts, especially those in the internet.

Technical analysis works within certain boundaries for certain applications but only in a market that is liquid enough for big traders to not be able to manipulate it. Crypto does not have that liquidity yet, so the profits you make from applying Technical analysis is down to luck. I think Crypto is more about news. So technical analysis is completely useless at the moment. You may see certain patterns here and there but price does not respect it. until there’s more volume, this is how it will be until then, completely volatile and directionless. However, without a combination of fundamental and technical analysis, you will depend on chances too much.

Basically traders use bitcoin technical analysis (TA) to get high profits with bitcoin, but for me personally it is not very useful to use TA because I think to predict future bitcoin prices is certainly very difficult even though TA shows direction to its users, maybe only some traders can control the market price with that system. maybe we are better off balancing technical and fundamental analysis in bitcoin trading so as not to lose.

In my personal experiences, technical analysis does really helps in predicting the future market price of Bitcoin especially for a short term market analysis, but if we are to predict the market price of bitcoin with a higher chance or certainty, we should incorporate the outside factors that might affect the market such as the headline news which mostly affects the perception of investors when they saw it in different trading signals or cryptocurrency news platforms. If we are to rely only on the technical analysis or the trend analysis as our basis for prediction, it is not always providing a huge possibility of predicting the close market price. I definitely advise especially to newbies in trading to consider studying both technical and fundamental analysis. If they have much time, they can also conduct sentiment analysis from their friends and peers.

Technical analysis based on market trends, yeah you can call it trend analysis.
However, TAs always different depends on who made it up, since bitcoin tends to repeat the cycle happened before, the history may repeat over again.
It does affect people's decision, but we have the bigger picture here, bitcoin will rise towards halving and every dip is a chance to buy more.

I think it really depends on how you approach the perspective. Technical analysis is a vital tool to help create a visual perspective of the past and present market states and also helps for predictions of future market movements. I believe that there are many approaches that one can take when it comes to technical analysis, however that doesn't mean that the conclusion within the math guarantees the forecast. All that technical analysis can do is give you the data, hard mathematical facts collected from the past and the present market states. When dealing with Predictions/estimations/forecasts/augury, you dwell into the realm of uncertainty, whereas several anomalies (unknown variables) could occur altering the course of events which could result as a failed prediction.

the stupid thing about trend analysis is that if everyone follows a prompt such as 'sell because there will be a drop' guess what.. a drop wiil occur because of the sell.

its not predicting, its causing.

so when a mass of people program their bots to just follow the lead. its not based on predicting. its based on causing the result of a prompt
basically its a form of pump and dump where one prompter makes people react to cause thee action the prompter wants.

the bad thing about it is by the time people react the prompter has already reacted way way before thus he makes the maximum gains and the reactors and causers are left at the loss as they are the last to the pump and dump game

trend analysis predicts nothing.
trend analysis just turns people into pump an dump sheep causing people to repeat history over and over

dont treat trend analysis as technical . and stop even describing trend analysis of historic price as 'technical'

if you want to do proper technical analysis find things outside of the historic price. that way you can be first to set new trends rather than just repeat history and be last to react

remember once you hear someone prompting a action, your the last to hear.
dont be a sheep, become a shepherd
use real technical stuff thats not just price history

if for TA on the Bitcoin market, I think all traders use it, because so far the price of bitcoin can always be analyzed using TA, except Altcoins sometimes there are many pump groups and dumps in it, so I rarely use TA when I trade Altcoin because it will be beyond our expectations analyzing using TA, so in my opinion it's important to use TA to analyze bitcoin prices, one more thing to remember if you were a FOREX trader who used to use TA, please don't you equate trading on bitcoin using TA, because that would be very different

TREND analysis does not help short term day trading. a 6month previous trend does not help predict the waves of trading at a daily level. it basically just says when you see a spike expect a fall

Technical analysis that studies things like mining costs and UTXO hoards(how much exchange coldstore (richlist 100+ addresses)) are hoarding are better indicators of how many people want to buy and how many want to sell.

nothing is a perfect science but pretending trend analysis of just historic prices is 'technical' is foolish. pretending TREND analysis is good for day trading is even more foolish.

if your going to use TECHNICAL analysis, actually find some measures that are actually technically based. and not just drawing lines based on some random number in the past.

The price is getting lower. This isn't a good news for the bitcoin investor. I just read an article published yesterday on all-stocks.net. According to the published article information the Bitcoin(BTC)trade is currently trading at $8,792. It can also be observed that the largest cryptocurrency’s price is back into the channel with an upper limit at $8,875 acting as resistance and the lower limit at $8,689 acting as support. For more details check out this article: https://all-stocks.net/bitcoin-price-technical-analysis-nov-13-indecision-and-negative-momentum/

Totally relying on Technical Analyisis on your trades and investments is quite a bad idea. These tools sometimes help but only to further validate your predictions/intuition of the market's future. Remember that cryptocurrency market is volatile and tend to swing with recent news and events with relation to cryptocurrencies. I prefer to watch the current happenings and take advantage to buy/sell depending on the situation. Time is money in trading because price changes may happen suddenly in short periods of time.

In my opinion if for trading, technical analysis is needed in bitcoin. Technical analysis is useful not only in the forex or other investment markets including the cryptocurrency or bitcoin market because technical analysis is used to describe patterns of price movements.

Although i don't really depend on analysis but i think it helps more people to invest in Bitcoin specially if the analysis is not in favor of FUD therefore as long as it will help to promote the Bitcoin market then analysis is just fine and a good tool for me so yes it has a value.

If technical analysis is always or should I say 90% correct, don't you think people will find a way to learn about it and be an expert in TA's? Or maybe someone will create a bot that will do TAs for us and tell us which coin to buy according to TA. Maybe TA's can help you decide, but I think 60% of your decision will come from your emotion or feeling.

I always re-analyze, don't trust anyone completely because no one knows for sure where Bitcoin will go
but every trader uses technical analysis even though they are not too sure. too many factors affect the price of bitcoin

No, people have tried to predit movements of BTC, but it's never worked, because, ever since BTC was created, no one was able to predict movements correctly.

I've never listened to any "professional investors" or technical analysis, most of them are shillers and it's always safer for you to listen and read the news, make your own judgment and then invest as you see fit.

I think that technical analysis is always about statistics and I don't believe in its accuracy. However, it affects traders decisions and that is how it is affecting the price. The price will always listen to the majority's direction.

It is the same for btc.

That is what I believe.

The person who made the analysis is the one who will benefit from his own interpretation. It's tough to follow how things will work out since the market is prone with many volatilities, you have to be precise making any assessment. Your observations with how the market will proceed gives you a better position to invest your money in the right place of time. Technical analysis will work if you do follow your system.

Very high volumes are required for the technical analysis to be efficient. Only the bitcoin can provide this necessity. Please note that the total volume of crypto coins is 220 billion dollars. In the traditional exchange, a daily volume of $5.5 trillion

Honestly, it is very helpful in my bitcoin analysis. Lately, I have converted by bitcoin into fiat before the market goes down. And that because I have read it from my technical analysis, I've seen bear is coming so I have sold my btc immediately.

It is not always working because of so many sideways but at least I have a basis for my bitcoin tradings and have a knowledge when is the time to buy and sell bitcoin.

Imo, they can help you judge the market at times but doesn't necessarily mean that you should trust it a 100%.
TA is basically just a possible reaction or result by taking in different factors involved in the problem. They are valued and albeit helpful at times, but only take it as only one factor when deciding things about bitcoin. Do not base your decision solely out of it.

My analysis before I made a coin purchase especially Bitcoin. I will be monitoring some markets that have large volumes like Binance. I see that in the market there must be an application or chat Group. And they are always compared to the price of coins that are on Binance exchange.

I think that's true because I also do that. Although sometimes also does not correspond to what I monitor. The Crypto market is very difficult to predict. But I also will not give up to make a profit. So any analysis that can give a good option, I think is not a problem.

Technical Analysis is actually a study of human psychology and their reaction on a market. It's a test of human behavior and not financial behaviour and this is the reason which makes it  so universal that it could be used in almost any market in the world. Crypto market is no different from any other market therefore yes the charts do have a lot of significance on this market too. However, every market is a bit different from others and so are the people engaged in the market. This is the reason why traditional charters of stock market find their charts to be pretty unuseful in this market. However a good strategy and setup still has a lot of value in this market. So yes charts do work in this market.

It depends. for analysts sometimes it just plunges can also be true, but most of the analysis they make that makes a panic and can also plunge for new users, without realizing they are trapped in the analysis of deception, what's more analysis analysis from outside media is always out of line about the analysis bitcoin, therefore I judge this is dependent on the analyzer itself ..

From my experience I can tell you that BTC does not behave like the tech analysis would point... (at least most of times)
It is a very small market in which there are a handfull of large holders that play market makers... they use all this legion of supposed TA experts to spread the word... and then they eat all the shorts... 

Looking good forecasting result or to predict with the basis and might guessing almost possible to happen because of having indicators. Yet, that is how to work the technical analysis and that is useful when it comes trading as an indicator. Don't forget the fact that this is only an indicator, bitcoin price movement is unpredictable and very volatile in the market. Manage your own risk and be responsible for trading.

For me,  technical analysis is the most effective  in terms of forecasting the price of the bitcoin. It is already proven that we can use technical analysis in order to protect and grow our funds.

Never assume that the analysis you have done is perfect, because it is not you who control the market. The name of analysis cannot be 100 percent accurate. There are times when your analysis isn't quite right.

No matter how sophisticated the technical indicators used, or in-depth research on news, all will not be helpless to face the real power.

If the seller's power is too large, no matter how great the analysis, the price will still go down.

I think the best TA has not yet been invented, it can actually be an indicator, and that is what can measure people's emotions when they enter the market. Perhaps the best technical analyst or even the best fundamental analyst, has everything intact and very elegant, but when a Crash or Rally not contemplated occurs, all your analysis is automatically invalidated, there is still no such indicator or indicator that tells us which people Think in strong hands that are the creators of the market. Bitcoin's recent decline canceled many analyzes of many famous ATs, the market is like that.

I think that the TA can help us make a decision, because they are only mathematical tools, patterns, but it should not be decisive, the market is very extensive to only analyze it in this way, the market is like a great Symphony Orchestra that must know how to address and go in the same direction so that you get in harmony with it.

Too many unknown factors,  a single country just talks about a new law and the price can Tank. A single company starts accepting bitcoin or creates their own and the price shoots up. We've all seen it happen.  So, tell me about your charts new guy with a degree that didn't include bitcoin.  Give me your best shot.

Technical analysis is simply historical analysis which serves as a basis for future predictions and so far when it comes to bitcoin in recent times has been failing. The problem is not the technical analysis because every businesses and industry even down to companies use analysis to plan their next steps or how to tackle a problem. For me, the problem is the crypto industry which is still in its developing stage. Technical analysis when it comes to the stock market tends to be more accurate and the reason for that is because some factors are being held constant in that sector but in crypto, that is not the case. You don't know when a Tweet will send the market frenzy or when a government will make a news of kidnapping and other illegal news about crypto. You also cannot decide the comments of an individual that would make companies sit tight wants to retrace their steps in crypto. Put this together, no analysis would ever be 100% accurate it will just be the opposite which is what is currently being witnessed.

Technical analysis is not 100% can give profit to any traders. But it can give guidelines to all of us here, it may not be
precise but at least it give helps and idea for us to get more earnings in the end. And one more thing, all people gave an explanation
in the chart based on their TA was all just an speculations only were its up to us if we believe or not.

Technical analysis is the visual representation of the market psychology, BUT analysis is a total different concept with trading. Analysts have no responsability of their account, they just analyse the charts and paint beautiful lines on them. But if you are a trader and know a little bit of technical analysis you can make fortunes so I would say that TA holds big importance for crypto taking into account that there are few or none fundamental events to take into consideration like Earnings reports for stocks.

and many make several speculations and delete the ones that ar wrong so that the only ones visible are the ones that showed correct guesses, making it appear they are right more often than not. where reality is that they were wrong more often, but removed the wrong evidence

anyways my main point is dont trust people speculating the future based on TA where T=just a chart with a Trend line

technical analysis has absolutely nothing at all to do with drawing lines on charts.

the chart stuff is called TREND analysis. NOT TECHNICAL

know the difference
anyone trying to pitch you on future prices by just looking at historic prices, is not technical in any way.
in the real world things change due to real world causes.

eg. you wont see details about
transaction fee's on a historic price chart. yet thy affect peoples desire to move coins from/to exchanges
exchanges deposit limits or kyc requirements on an chart, as that affects it
hashrate numbers on a price chart as that affects if its cheaper to buy or mine it, plus cost to mine vs profit to sell
amounts of deposits not on orderlines waiting for the right oppertunity

so if anyone says they are offering a TA but all they show you is a chart with a line they drew. thats trend, not technical.

plus. i can make a chart and have over 50 different angled lines. for instance MA10,MA15,MA20,MA25->MA360
it means crap all. all it means is someone can draw a line at any angle and make it always appear right
(lazy trenders say, 'last month it showd ma20 followed, prvious month was ma50')
if they cant stick to one measure thats consistantly right, then they have noway of predicting the future

oh and one last thing...
bots.
by bots becomming programmed to follow set patterns. they actually do not predict the future, but set the future in play by all doing the same thing at the same time because thats what they are programmed to.
they are in no way predicting the future, they are self fullfilling thier programmed prophecy..
the only issue with that. is that human trading ruins bots programmed logic, which is where even bot trading fails people

Since begining of time people want to listen to someone knowing more. Often the case is this person have no clue, but know how to talk so they listen.
I dont believe in TA, its like fortune cookie, you may like it, but its not good for your health

Well, if it has a value, I usually combine it after analyzing the market, I use very little of it, some fibonacci and when Elliot is in trend, it has given me good results. I like to analyze the volume, review the main Exchanges, review the millionaire portfolios to get an idea of ​​what may be happening and when an important movement occurs, I react. I think that by combining this type of analysis with technical analysis I have a better chance of success.

There's nothing that would make Bitcoin so special that technical analysis would be rendered useless for Bitcoin. It's just that those articles that you get for free from crypto news sites have very bad analysis, and technical analysis on its own is never 100% accurate, in fact it just has to have above 50% accuracy to generate profit. Check the Speculation board, some users there post some quite interesting technical analysis which I saw being correct a few times.

I'm one of the trader who relies on chat and it works too but at the time it fails, I do take that as a risk I have taken. Although, I'm not greedy with market. I take smaller risk so that a lose won't be too much to manage .

I admit that those analyses sometimes can be very helpful when investing in Bitcoin. But there is a truth that Bitcoin or any cryptocurrency is too hard to predict. For example many people weren't expecting this downfall.

In my opinion, one cannot completely trust TA, now the market is too unpredictable. Even look at the situation with the price of Bitcoin over the past day, could this be predicted on the chart?

You mean the analysis to predict the price of bitcoin? If so, it doesn't make any sense.

Of course TA is good but, it is only good for the 0.1% population, the rest of 99.9% do not make good use of TA. I use TA all the time and it’s really good, but TA only work for 4% of all crypto listed, most crypto don’t really have TA value, the same we can say with DJIA too, only some blue chip has some TA pattern, all the other red chip simply have a rocket science Chart pattern. And I believe bitcoin has some of the same TA pattern shown in some blue chip DJIA components.

of course it is. but you have to keep in mind that technical analysis is not a fortune telling technique to predict the future without fault. it is more like some sort of guideline that can help us make the best educated guess about the possible directions that the market might go. then there are a lot of other external factors that can affect the price and when they are considered, you can have a better speculation.

^ Lol, John has a young age, he is now 26 years old at that face image.

Every trader do TA's on their own, TA is most important than predicting without proof of technical source. In my own, it gives help on traders to give reference even though this does not give much accurate result but at least it is possible. But I will suggest those people who are relying too much on chart analysis, also listen to the news that incoming that possible the reason of sudden drastically drop. Just like what happened at this moment. I dunno if it is because of BAKKT launching.

Every user of the cryptocurrency know the uncertainty of the network. Technical analysis is good enough for trading practice. Just for the continued buying and selling it is good, beyond that the price predictions were made with reference to the growth happened in past days during the same time period.

Till yesterday users could've bought cryptocurrency following technical analysis for the trading and long term holding. All of the sudden the market has shown a drastic change. This makes the cryptocurrency network more riskier, even the trading practice which commonly happens with cryptocurrencies.

TAs must have great value to a lot of Bitcoin traders. There are full-blooded crypto traders who are highly reliant on TAs rather than on fundamentals. They seem to find everything in the charts.

Personally, however, I find it a little funny when my friends talk generously about Bolinger Bands and Fibonacci and RSI and what have you. But then they barely make some profit out of trading. Some are even stressed because of lack of sleep over-analyzing the charts and gained nothing in the end. As for me, I prefer to buy or sell during large swings.

Coming up with a really nice TA on Bitcoin must entail a lot of skills. But there must also be a good reason why HODL became more popular than trade. 

John, here, has something to say:


(Photo grabbed from https://steemit.com/trading/@kryptokayden/and-they-said-trading-crypto-is-stressful)

You can analyze the direction of the price using a chart or TA, but this is not an ideal forecast. It must be remembered that Bitcoin is very volatile and something can always happen that is not according to plan.

Im neutral with this, I see nothing wrong on analysing what will happen next but the price will still be unpredictable keep in mind that there is a lot of traders every minute/second and that affects the price.

I do use TA at times when i want to confirm when to make an entry or exit points. Short term, Charts can be very helpful thou one should not entirely rely on them. I do take small profits and it works perfect every time.

The problem with some people is that they totally rely on chats, and they end up getting disappointed when things go side ways.

Every day experts share BTC technical analysis and charts.
They look good but actual results are often total opposite.

Are they helpful in you Bitcoin decisions?