Analysis of market trends in cryptocurrency: a guide to identify reversal and continuation patterns

The world of cryptocurrency has recorded enormous growth and volatility in recent years. With the rise of decentralized financing (Defi), the initial coin offers (ICOS) and old coins, the landscape has become increasingly complex. However, the analysis of market trends is of crucial importance for investors, dealers and enthusiasts in order to make sound decisions about the purchase, sale or adherence to cryptocurrencies.

In this article we will deal with the market analysis of the world of cryptocurrency, whereby we focus on the identification of reversal and continuation patterns. By understanding these patterns you can gain valuable insights into potential price movements and make a more informed investment decisions.

What are reverse patterns?

Reversible patterns relate to specific price movements that signal a change in the direction of trend. These patterns can be identified using various technical indicators and diagram patterns. Reversal patterns:

* Headings : A reversal occurs when the price breaks over or under a significant level of resistance, which indicates a potential movement.

* Tails : Conversely, there is also a reversal when the price breaks under a significant level of support and signals an upcoming decline.

* Fibonacci reversal : A Fibonacci retreat pattern is identified by the placement of 23.6% and 38.2% Fibonacci values ​​in a diagram. If these values ​​are exceeded or broken, this can indicate a reversal.

What are continuation patterns?

Continuation of patterns relate to price movements that increase an established direction of trend. These patterns are often used as indicators for the potential continued growth or a withdrawal of the market.

* Impulse : A continuation pattern is identified when the price moves further in the same direction and maintains its impulse.

* Central level : If a significant support or a level of resistance is exceeded, this can indicate a continuation of the trend.

* Golden Cross : The Golden Cross occurs when a short -term moving average leads over a long -term moving average, which indicates that the market has formed a potential reversal.

Types of patterns to see

In addition to reversal and continuation patterns, there are several other types of patterns that are worth keeping an eye on:

* Bullic pattern : This includes head and cocks, fibonacci retracements and golden crosses.

* Bearic pattern

: reversal patterns such as the death cross, hammer and shooting star.

* Medium reverse pattern : This includes the identification of overbought or oversized conditions in a market and the expectation of a correction.

Diagram analysis

The diagram analysis is of crucial importance when looking for reversal and continuation patterns. Some important aspects must be taken into account here:

* Zeit frame : Analyze diagrams with different time frames such as 1-hour, 4-hour and daily diagrams.

* Supporting and resistance level : Identify significant support and level of resistance that can influence the price movements.

* Movements Adugen : Use movable average values ​​to determine the direction of trend and impulse.

Tools for analysis

Use the following tools to analyze market trends:

* Technical indicators : Use indicators such as RSI, MacD and Bollinger tapes.

* Diagram pattern : Identify diagram patterns such as head and cocks, fibonacci -retracements and golden crosses.

* Support and resistance level : Use the Level 2 and Level 1 diagrams to identify significant support and level of resistance.

Diploma

The analysis of market trends in cryptocurrency requires a combination of technical analysis, basic research and market mood. By identifying reversal and continuing patterns based on various tools and techniques, you can gain valuable insights into potential price movements and make sound investment decisions.