Reading Crypto Charts
Crypto charts have unique characteristics that differ from traditional market charts.
Chart Platforms
TradingView
- Most popular for crypto
- Advanced charting tools
- Community ideas and scripts
- Free tier available
Exchange Charts
- Built into Binance, Coinbase, etc.
- Good for quick analysis
- Limited tools compared to TradingView
Crypto-Specific Chart Features
Volume Analysis
- 24/7 volume patterns differ from stocks
- Weekend volume often lower
- Volume spikes on news events
- On-chain vs exchange volume
Funding Rate Overlay
- Shows futures market sentiment
- Positive = longs paying shorts
- Extreme readings signal reversals
- Available on derivatives exchanges
Liquidation Levels
- Clusters of leveraged positions
- Price gets drawn to these levels
- Creates cascading moves
- Tools: Coinglass, Hyblock
Key Patterns in Crypto
Bart Simpson Pattern
- Sharp pump followed by slow bleed
- Common in low liquidity coins
- Often manipulation
- Avoid trading these
Wyckoff in Crypto
- Accumulation ranges before pumps
- Distribution ranges before dumps
- Spring pattern (fake breakdown)
- Very applicable to crypto
Parabolic Moves
- Exponential price curves
- Always end in correction
- Do not buy parabolas
- Wait for pullback
Timeframe Selection
Long-Term Investors
- Weekly and monthly charts
- 200-day moving average
- Cycle analysis
Swing Traders
- Daily and 4-hour charts
- Multi-day setups
Day Traders
- 15-minute to 1-hour charts
- Intraday opportunities
Tips
- Use log scale for long-term crypto charts
- Volume profile is essential
- Watch funding rates alongside price
- Crypto respects horizontal levels well
- Trendlines work but liquidity hunts common