Crypto Technical Analysis
Crypto markets have unique technical characteristics that differ from traditional markets.
Crypto-Specific TA Considerations
24/7 Markets
- No market open/close
- No gaps (usually)
- Weekend trading active
- Volume patterns differ from forex
Volatility
- Much higher than forex or stocks
- 10-20% daily moves possible
- Adjust indicators accordingly
- Wider stops needed
Key Indicators for Crypto
Moving Averages
- 20, 50, 200 day MAs still work
- 21 week MA (bull/bear separator)
- Weekly close above/below 200 MA is significant
RSI on Crypto
- Overbought above 80 (not 70)
- Oversold below 25 (not 30)
- Crypto trends harder and longer
- Divergence works well
Volume Profile
- Extremely important in crypto
- On-chain volume vs exchange volume
- High volume nodes = support/resistance
- Low volume nodes = price moves fast through
Chart Patterns in Crypto
Most Reliable Patterns
- Ascending/descending triangles
- Bull/bear flags
- Head and shoulders
- Cup and handle
Crypto-Specific Patterns
- Wyckoff accumulation/distribution
- Spring pattern (bear trap)
- UTAD (Upthrust After Distribution)
Support and Resistance
Key Levels
- Round numbers (50K, 100K for BTC)
- Previous all-time highs
- Major liquidation levels
- CME gap fills
On-Chain Metrics as TA
Exchange Flows
- Inflows = potential selling
- Outflows = accumulation
Funding Rates
- Positive = longs pay shorts
- Negative = shorts pay longs
- Extreme readings signal reversals
Trading Strategies
- Trend following with 21 week MA
- Mean reversion at extremes
- Breakout trading on accumulation
- Use multiple timeframe analysis