Tron Fan Club| Understanding Crypto Market Trends - By @solexybaba| 10% payout to the community account
Image edited on Canva
Hello to everyone in this great community known as the Tron Fan Club I hope we all are doing perfectly well. if you have been flowing my teachings lately, I have been talking about cryptocurrency trading-related topics and I have given several lessons on it, today is no exception. I will be talking about a great topic in crypto trading. it is essential for newbies in crypto trading to understand this topic so well which I have titled understanding crypto market trends. it is quite a great lesson and it will help us, especially newbies to know what the crypto market trend is all about and also the basic ways of analyzing trends. sit tight and relax while I begin my lesson.
WHAT IS A MARKET TREND?
When we are talking about the crypto market, a market trend can be seen as the scenario in which the price of a particular cryptocurrency is on a solid move at a particular period. and this trend movement can as well be of two categories, and they are either, a rising market trend, this is a situation whereby the price of the aid asset is seen to have attained new highs with different higher highs and lows, and also a situation whereby we notice the price of an asset going downward in a situation whereby we notice the price pf an asset attaining lower highs alongside lower lows.
screenshot from Tradingview
We can then say a market trend in a particular situation whereby the market price of an asset in the crypto world is on a particular movement and this movement can be a rising trend or a falling trend at a particular given time. here the motion of the price regarding an asset is not static but rather it focuses on a particular direction be it an uptrend movement or a downtrend movement.
Now as seen from the above image, a cryptocurrency pair, is moving in a downtrend direction of the crypto market
WHAT DO WE MEAN BY A BULLISH TREND?
We often use the word bullish in the crypto market trading and many newbies get confused regarding that word, so I will be clearing the air on that note.
screenshot from Tradingview
When we talk about a bullish trend we are saying that the crypto market is on an upward movement, that is to say, the price of an asset is rising. for example when we notice that the price of STEEM is going up in an upward direction, then we can say that the price of steem is on a bullish trend. so in a nutshell, a bullish trend is the scenario whereby the price of an asset keeps increasing in value. so whenever we notice the price of a particular currency rising higher and higher at a particular time then it is said that that asset is on a bullish trend movement.
WHAT DO WE MEAN BY A BEARISH TREND?
The bearish trend is the opposite of a bullish trend, if the price of an asset is not on a bullish trend then it is certainly on a bearish trend movement.
screenshot from Tradingview
The bearish trend movement can be seen as the scenario where we notice that the price of an asset is going downward, this is to say the value of an asset is falling at a particular time. for example, when a cryptocurrency price is seen at $10 and then within some time we notice that the price of that asset has dropped down to $7, then we can now affirm that the asset is on a bearish trend movement. so a bearish trend market is seen when the price of an asset is losing value in the crypto market.
WHAT DO WE MEAN BY MARKET STRUCTURE?
The word in crypto trading is said to correlate r be determined by the total number of traders that are present and making possible orders be it a supply order or a demand order in the market at that particular time in the crypto market trading.
Analyzing the crypto market is quite simple and very simple to assimilate. it is not abstract as though it assists us to view certain barricades points on the market movements, it helps us to notice and point out certain higher highs and lower lows in the crypto market.
The market structure also enables traders to view the market and know what is happening and how it is moving and also in what direction is the market trending.
Talking about the bullish movement in the market structure, it is displayed when we notice higher highs alongside higher lows in the price of a given asset in the crypto market. the bullish trend will continue in that manner until we then notice a breakout from this trend by a lower low and then at that point, we can now say that the price of the said asset is about to fall, and in a short, while we might be noticing a bearish movement in the market soon.
screenshot from Tradingview
So in a simple word, the bullish trend in market structure falls when we notice that the price is no longer attaining a higher high, and with that comes a higher low in the value of the said currency.
It is just like the market bullish trend but in the opposite direction. the bearish trend does not happen at the time we notice the market in a downtrend spot where we notice lower highs and lower lows rediscovery but this happens when we notice the price movement of the said asset continue to attain a lower low alongside a lower high, at that point, the downward movement of the price will continue in a bearish trend in as much as the asset keeps going down in price but that changes immediately it begins to pop up higher highs in the price of the said asset.
screenshot from Tradingview
so in a simple word, we continue to notice a bearish trend in the market structure until the price of the asset retrace from producing a lower low and exit from the bearish trend by the appearance of a higher high in the price of the said asset in the market.
WHAT ARE TRENDLINES?
The trendlines are particular vital equipment that is used to make market trend analyses. it helps investors especially traders to know what is happening in the market, it helps to see the power at which an asset is either supplied or demanded.
The trendlines also denote the fact of what is to occur in the market regarding the price of various assets in cryptocurrency trading. it reveals the range at which an asset price is situated and also determines how an asset price may rise or fall at a particular moment.
screenshot from Tradingview
When we talk about the bullish trendlines, this happens in a scenario where we notice the asset prices in the market are in an uptrend and connecting with the higher lows alongside a straight line and this produces an uprising trendline which we all know as the bullish movement in the crypto market. and it is simple to connect these bullish trendlines by connecting the trend to higher highs.
screenshot from Tradingview
It is the opposite of the bullish trendlines. this happens when we notice the asset prices in the market tend to move in a downtrend manner, connecting the lower highs alongside a line which thus produces a downtrend line that is generally known as the bearish trendline. and we can map out the bearish trendlines by connecting the trend lower lows in the market.
CONCLUSION
It is necessary to know the importance and meaning of crypto market trends and know just to know their various importance but also to understand each one of them as though the trendlines help investors, especially traders to take advantage of the market be it in supply or demands of certain cryptocurrency assets.
Thank you all for visiting my post, and see you next time.
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Wonderful analysis you've done now
Good work
Thank you so much for stopping by. Greetings!
You discussed a nice topic with us today about crypto market. How we understand cryptocurrency trends is a very important issue for every cryptocurrency trader and holder.
Thank you so much for stopping by. I'm glad you appreciate it.
interesting article to read and of course you have done a good thing and also good keep doing that Thank you for sharing here
It is a pleasure to teach especially newbies, everything about trading. Thank you so much for visiting.
😊😊😊
A very nice post. You have done well in explaining the various cryptocurrency terminologies which is very essential for cryptocurrency enthusiasts
You are right there. Trends are essential and thus need to be understood greatly before one can carry on with his or her trade in the crypto market. Thanks for stopping by.
A very beautiful lecture friends.. Understanding these concept will go a long way in helping one make profitable moves in the market.
It is a great topic, as though we get to understand trends and also what they individual entails. Thanks for stopping by.