A Guide on Identifying Crypto Market Trends

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Cryptocurrencies are popularly called the currency of the modern world. With the modernisation techniques of investments, many people are attracted to them due to their flexibility and higher returns. According to a survey, the market of cryptocurrencies reached trillions in 2018, making it one of the most profitable means of investment today. One should have appropriate knowledge about identifying crypto market trends to achieve success in the area. Most transactions related to cryptocurrencies take place online with direct communication between the buyers and sellers. 

What is a cryptocurrency market? 

It is a decentralised form of market where the future prices will depend upon the activities of the buyers and sellers. Blockchain technology is a protective medium that ensures proper communication between the customers and sellers without any other party’s involvement. 

The cryptocurrency like Rapidz, trend works on a specific price pathway. It is of two types known as uptrend and downtrend. 

  • In the uptrends, the price moves towards the lower levels in the chart, which states that sellers are going strong compared to the buyers. 
  • Whereas in a downtrend, the price will move towards the higher height of the charts indicating that buyers are more substantial than sellers. 

How do you identify the crypto market trends? 

One should have proper knowledge about the industry if interested in cryptocurrency trading. To avoid loss, an individual should gain an understanding of identifying the market trends accurately. It is one of the most significant steps in investment. Below, strategies are mentioned to analyse the crypto market trends. 

Identifying the markets through Ichimoku Cloud: 

Also known as Ichimoku Kinko Hyo, this is a technical indicator involving multiple trends that state asset prices. The elements of the cloud are mentioned below. 

  • Tenkan Sen: This element shows the short-price assets or sentiments in the market. 
  • Kijun Sen: It states the medium price sentiments in the market analysis. 
  • Kumo Cloud: It indicates the area of the price reversal zone. 

Identifying the trends through the Golden Cross: 

The golden cross happens when a short-term moving average will cross the long-term moving average. 

The most reliable moving average values of the golden cross are: 

  • 200 SMA (long-term)
  • 50 EMA (short-term)

If the price is above 200 SMA and 50 EMA in uptrends, it indicates that both short-term and long-term traders are bullish. Whereas when 50 EMA crosses above 200 SMA, it shows further bullishness in an asset or service price. The case of the golden cross states the condition of uptrends. 

Identifying the trends using multi-frame analysis:

The detailed approach of the multi-frame analysis is given below. It is as follows: 

  • Look closely at critical levels.

Key levels can be a reliable indicator for identifying market trends. One can easily observe on a higher timeframe. When the price is above the critical support levels, you can buy, whereas if the price moves lower from the key levels, an individual should sell. 

  • Identify the near-term level: 

After identifying the long-term trend, one should focus on the short-term trends. The trend is considered vital when the short and long-term trends are in the same direction.

For a successful run in the trading industry, one should have access to financial resources and management techniques. Proper strategies and management ideas will help in gaining higher returns. 

Conclusion: 

Identifying crypto market trends can be tricky as it involves professional techniques and specifications. If you have proper knowledge about the market and can identify its trends, you can easily earn profits in the industry. In addition, one should have adequate trading strategies knowledge and can have professional help for a successful run. Professional advice can help you in achieving the required financial goals with ease. 

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