What is Technical Analysis?

You might’ve heard of technical analysis, or similar terms to describe the same process including risk/rewards analysis or market psychology. Technical analysis (TA) is a trading strategy that has been traditional used in stock market trading for high-frequency traders, hedge funds, brokers, and individually; basically, lots of people use TA to study pricing patterns and try to make predictions about psychological behavior. In a nutshell, it looks at the current behavior of all the buys and sells for a particular coin and tries to answer the question:
Based on the recent and historical pricing patterns, what do you think traders will do next?
Technical analysis is especially powerful in cryptocurrency markets due to several factors. We know that the cryptocurrency markets are largely speculative, and the spectrum of investors range from veterans of the stock market to crypto traders who have been in the space for years to people who don’t even know what a stock is and heard about Bitcoin 5 minutes ago and are now investing in cryptocurrency. Due to the lack of general understanding of cryptocurrency and its underlying value, we see a lot of pricing sensitivity pegged to things like news, hype, and sudden drops/increases in price.
Technical analysis is especially powerful in cryptocurrency markets due to several factors. We know that the cryptocurrency markets are largely speculative, and the spectrum of investors range from veterans of the stock market to crypto traders who have been in the space for years to people who don’t even know what a stock is and heard about Bitcoin 5 minutes ago and are now investing in cryptocurrency. Due to the lack of general understanding of cryptocurrency and its underlying value,see a lot of pricing sensitivity pegged to things like news, hype, and sudden drops/increases in price.
Also, the overall market cap of cryptocurrency is under $500 Billion.some of the trade volume for smaller coins are so low that even buying $10,000 worth of the coin can result in a significant increase in the price, which is what leads to price manipulation and potential pump-and-dump schemes. In other words, the current market is especially sensitive to buyer and seller behavior.