HomeCryptoTechnical Analysis of the Crypto Markets

Technical Analysis of the Crypto Markets

How would it feel driving a car without a dashboard providing an indication of the speed and other car panel indicators? Investing without technical indicator is flying blind not knowing when you might hit a speed bump.

Last 4 months have caught lots of people by surprise in the crypto markets. While pundits and so called gurus, were calling for 200K BTC prices and 20KETH prices with a parabolic move incoming similar to the 2017 bull market cycle, what turned out was a completely different story.

The cryptocurrency markets have taken a complete reversal led by stories of potential Fed rates rising and tightening of monetary policy impacting the markets on one side and the Russia-Ukraine special military operation/war impacting on the other.


I decided to write this and other related article within the context of the last four months. Lots of people were caught off guard with

  • people seeing all their profits evaporate when the markets reversed quickly
  • lots of people didn’t have a plan of taking profits/selling
  • people didn’t realise that the market had turned with the market direction being negative

Most people who were caught off guard had no clear sense of where they were driving and the fact that the direction had changed. Without an array of tools and indicators, you are flying blind. I had three suggestions for all my readers: a. Make charts your friend, b. always do your homework and c. learn from your mistakes.

Fig. 1 shows BTCUSD chart pattern with a clear indication of trend reversal. The trend that had started around the 22nd of June 2021 at around 30K mark for BTCUSD price, had flipped negative around end November 2021. The market changed direction at the top. Technical Analysis gives you get a good sense of what the markets are doing while you can use the fundamentals for the long term picture.

Fig 1: BTCUSD 4 hour chart showing the reversal of trend. Chart by TradingView

If you have any ideas/thoughts, please reach out to use at invest@thetwigg.com

Disclaimer: All information in the site is provided for informational and educational purposes only. We are not a financial advisor. The information in this article is not intended to imply any recommendation or opinion about a financial product and is not a financial product advice. You should obtain independent advice before making any investment decisions.

Previous article
Next article

Latest Articles

The Bitcoin Chart, Inverted Yield Curve & Time is Money: The Morning Chai — 13-Jul-23

Today in The Morning Chai, we look at the Bitcoin Chart, briefly talk about the Inverted Yield Curve and understand that time is money. Chart A Day — Bitcoin,...

CPI Index and Small Steps towards success : The Morning Chai — 12-Jul-23

Today in The Morning Chai, we understand what a CPI index is, we discuss few ingredients for success and take a small step towards success. Finance Bites — What...

Learnings from “Stan Weinstein’s Secrets of Profiting in Bear or Bull Markets” applied to my NVIDIA trades

The number one thing for any investor or trader to learn in investing is “when to sell”. “When to Sell” is intrinsically linked to “Risk...

On Balance Volume — Could It have predicted Bitcoin peak in 2021 Nov?

On Balance Volume is one of the better known volume indicators used in Technical Analysis. OBV or On Balance Volume was popularised by Joseph...

Finance for everyone

Money and Finance is a rich man's domain. It's for everyone but is mastered by elite few. It's needed by everyone but is hardly...