Topic: Is technical analysis negatively affecting cryptocurrencies? - page 2. (Read 1309 times)

Right. Ta's affect directly the person who uses it or those that rely on tips by people who use it. And the effects vary since not all who know ta can have all positive outcomes. There will be failed trades based on ta and successful ones but no general effect on the market itself.

As far as I am concerned, Technical analysis is just a part of the market, and there is nothing anyone can do about it. It certainly does not affect anything positively or negatively, they just seem like some trends or something, even though it is something that a lot of people have collectively placed there themselves, but in the real sense, it is just some normal thing to just trade the market.

Well, if we say TA sucks, maybe we should try not even using TA at all and see how that would turn out. The problem with the market entirely is that is more speculative in nature, but that has so many difference from TA on its own.

I think it has a positive effect on the contrary, because each time it creates the opposite dynamics to what was predicted by analysts

I myself have never found an accurate analysis that says crypto price movements, I think the decentralization system that is owned by crypto and bitcoin will definitely make crypto make a price adjustment individually.

Yes, it is affecting because; People believe technical analysis and they listen to analysis and when we can check youtube we will see there are more analysis for cryptocurrencies and people watch them if the analysis was negatively it is not good because investors will not invest to cryptocurrencies and it is bad for all market.

Looks like graphical analysis is not doing any good to the market. It's sure that the experts are trying hard but sometimes it may not just work.

I have to say upfront that I'm no fan of technical analysis, even in traditional asset markets. There are 2 main reasons for this:
1) There is no scientific proof that technical analysis works at all. The only correlation between technical analysis and true market movements is that it is widely believed. And this leads to the next point
2) TA is a self-fulfilling prophecy. If people stopped believing in it, it would stop working right away. If people find new patterns they only start actually working once they get enough traction for other people to believe in them.

This is somewhat of a problem in traditional assets, but it is just a minor nuisance. The fundamental values of traditional assets always strike back, no matter what TA says. Found resistance? Doesn't matter if the underlying value shoots way up due to increasing sales, usage or whatever. Glad a value has some support? Doesn't matter if sales drop to near-zero, the price does not care about support.

At cryptocurrencies, however, those fundamental values don't work as there are rarely any. Most companies behind cryptocurrencies either have no product that is close to justifying their volume and value. Some of them (Bitcoin amongst them) do not even want to have one. Therefore they are subject to constant influence by those religiously believing in TA, which makes them an object of pure speculation. The fundamental values are "news", no matter the level of reliance.

In my opinion, this holds cryptocurrencies from being a usable and reliable method for everyday transaction use.

What is your view on this?

Looks like graphical analysis is not doing any good to the market. It's sure that the experts are trying hard but sometimes it may not just work.

Well, it seems TAs are not working even anymore. Even CZ, binance CEO saud it after thia recent usdt FUD pump. He said months of good news and insights into the cryptospace couldn't trigger an uptrend and just a alse news triggered it. Seems market is moving away from predictions and we can all testify to that because this year, many predictions never worked. Some analysts even ended up reducing the target prices.

I have to say upfront that I'm no fan of technical analysis, even in traditional asset markets. There are 2 main reasons for this:
1) There is no scientific proof that technical analysis works at all. The only correlation between technical analysis and true market movements is that it is widely believed. And this leads to the next point
2) TA is a self-fulfilling prophecy. If people stopped believing in it, it would stop working right away. If people find new patterns they only start actually working once they get enough traction for other people to believe in them.

This is somewhat of a problem in traditional assets, but it is just a minor nuisance. The fundamental values of traditional assets always strike back, no matter what TA says. Found resistance? Doesn't matter if the underlying value shoots way up due to increasing sales, usage or whatever. Glad a value has some support? Doesn't matter if sales drop to near-zero, the price does not care about support.

At cryptocurrencies, however, those fundamental values don't work as there are rarely any. Most companies behind cryptocurrencies either have no product that is close to justifying their volume and value. Some of them (Bitcoin amongst them) do not even want to have one. Therefore they are subject to constant influence by those religiously believing in TA, which makes them an object of pure speculation. The fundamental values are "news", no matter the level of reliance.

In my opinion, this holds cryptocurrencies from being a usable and reliable method for everyday transaction use.

What is your view on this?

I guess it only depends on how the analysis is done and how it will be shared to the public. I cannot tell whether it has a negative effect or it will give positive feedback to investors. I just presume that it only depends on how people understand the technical analysis that is done and shared.