TheCryptAlpha – Education – How To Identify A Trend In Cryptocurrency

welcome back to crypto for Channel today we're gonna talk about trend analysis and why it's very important for us to know and identify which direction the market is going into a way to identify the direction that the market is going to is to actually see the total essence and the patterns that the market is forming if you remember before December a month or two before December we were in a clear uptrend we were breaking and going higher and making higher highs and higher lows so our chart was looking borderline parabolic it went at a very increased rate of speed from 5,000 to 20,000 once we identified the pattern we need to also set our goals and our targets according to where the trend is going so if we're going to cross a psychological barrier such as 10,000 or 20,000 these are good areas to start considering that there may be a trend reversal as such as what we've seen in December when the trend changed and started going into a Down trend or a corrective wave so we did an impulse wave now we are correcting from that impulsive wave it doesn't mean that it's the end of the world it just means that we need to get through this corrective wave in order to start making our way back up and every single time the market gives us a correction it is very important for us to identify which direction we're going into in order for us to understand when to buy or when to sell the asset class so let's jump on the computer and I'll be able to draw for you guys an idea of what exactly a trend may look like and how to identify it so here we are in front of the Bitcoin chart I hope you guys can see everything clearly and here we're gonna identify a clear uptrend if we take a line and draw three points that is a very strong uptrend a very strong trend line and if you can actually see here we have a impulsive wave then a corrective wave an impulsive wave up then a corrective lip wave another impulsive wave up and now we have another corrective wave this is all on a daily chart and trends usually form on a daily weekly monthly you can actually determine the trend when you're looking at the asset class on a longer time frame to be able to see a macro trend and then once you go zoom in you'll be able to see there's trends within trends within trends you can even go to as little as three to five minutes and you'll be able to find trends in there as well but once you identify the big picture which is a daily chart you will see clearly that we had a very quick and I would say rapid upward action here we and now we are actually taking a breather so since the market goes in waves we are experiencing just another wave in the spectrum once we're done with this wave we can continue and go higher and break all-time highs as you can notice here the highs are higher than the previous highs and the lows are higher than the previous lows this is what actually creates a bullish very aggressive market as of now if we pull it in to a 4-hour chart we'll be able to notice that this market has been in a downtrend we have three peaks which would make this area here this line of resistance are very very strong we were unable to break it here we were unable to break it here and just as we've experienced the past week we have not been able to break out of this downward resistance line and we are now going pretty much sideways and I we're waiting for a breakout now this breakout can actually happen if you look closely if we break through this area so it could possibly break out here or it could pull back and then break out here it's all a matter of time and we also need to all respect the this area here which if we fall too low and we go to the bottom where we tested this low most likely we are going to go lower now the chances are up to the market and help the market reacts to the buyers but as a as a trader you need to identify why you want to enter the market you don't want to be buying it at the top you want to wait for one of these pull backs you know and maybe a bounce that will happen and then it will take us out of this downward trend once we're out of this downward trend in this area this area is a area for a long term progressive growth meaning the quicker we make it back to these levels of 15,000 the quicker we're gonna get to 20,000 and 30,000 and beyond you need to be able to identify exactly what trend you're in to be able to understand where you need to buy and where you need to sell I hope this video brought you guys there correct and helpful information for you guys to make the decisions on whether or not this market is a bull or a bear market what kind of trends wearing and where it is most optimal space for you to be able to buy so that you can protect your wealth I wish you guys all the best please send me a like subscribe and share my videos so that we can get the word out thank you very much and have a wonderful day old drop-top

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