I'll try to explain why. 😉
Technical analysis is an attempt to predict future prices based on history. In the stock market, these bars and charts work because the stock market is many years old. It has experienced crashes, booms, wars, black swans, and because of this there is a rough idea of how the market will react to a certain event.
Now about the crypto market! 📉
1. The market is few years old - there is no history.
2. The crypto market is very manipulative. Any successful millionaire can pick a small-cap coin and artificially raise or lower its price.
Let's remember Elon Musk, who with his tweet can influence the price of Bitcoin. I won’t even talk about Dogecoin – everything is already clear.
Imagine: you are sitting there, so smart after all the courses you paid money for, and drawing your own stripes, triangles and other crap. And then the uncle and grandma decide to lower the price of the coin in order to buy it back later. All your stripes and pyramids collapse, and you merge.
There is also a positive scenario when you are lucky and manipulation works to your advantage. You are happy that your charts “worked”, but this is not the merit of those analyzes, but simple luck. With such success, you can throw a coin and say that you can analyze the market by coin.
In the crypto market, fundamental analysis is more important: monitoring Fed reports, tracking the price at which funds purchased the coin, and many other factors. But the most important factor is the manipulator. His task is to deceive the crowd with news, negative background and other tricks in order to force the hamsters to lose money or stuff them in the cheeks with highs.
When you decide to buy a coin, ask yourself: is it your decision or is it just “to the moon” being shouted around? 🌙 When you decide to lose a coin, ask: is this really a scam or are they just trying to convince you of it?
Think about it. And keep your ears open! 👂
