7 Best Crypto Technical Analysis Tools
Are you having a hard time trying to predict how the crypto market is going to turn out?
Crypto technical analysis tools got you covered. In today’s post I’m going to walk you through 7 best crypto technical analysis tools that can help you do your research in the crypto market and give you an edge over the volatility of the market.
Today we are going to look into:
- What are crypto technical analysis tools
- Is technical analysis useful for crypto
- How does crypto technical analysis tools work
- 7 best type of crypto technical analysis tools
What are crypto technical analysis tools
Crypto technical analysis tools are software that uses mathematical indicators to predict future crypto trends or price behaviour based on former price data action.
There is no doubt that the crypto market is a very volatile one. The prices of cryptocurrencies are very unstable. The price changes every now and then.
There is no doubt that investors of cryptocurrencies want to buy when the prices are very low and sell at a very high price for a good profit margin. In order for this to be possible, good research is needed.
This research can be time-consuming and stressful especially when it is carried out amidst the other work that one has to do.
This is where crypto technical analysis tools come in. To help relieve the stress of the manual research and dependency on YouTubers and bloggers to predict and give insight into the cryptocurrency market which are not always correct.
Crypto technical analysis tools enable crypto investors to learn the technical analysis used in predicting future price trends and be able to carry out research on crypto currencies.
It is noteworthy that the technical analysis is not 100% predictive, but gives a close view on what the market opening price, closing price, low and high price would be.
Is technical analysis useful for crypto
In buying and selling cryptocurrencies, technical analysis is very much needed. This need is so because it helps to understand the crypto market.
When technical analysis is done right and accurate, it helps to predict the different crypto prices over different time periods. And this prediction helps to inform decisions on when to buy and sell cryptocurrencies at a good profit margin.
Technical analysis uses mathematical and statistical modeling to analyze and understand the price and market behaviour of the crypto market and has a very broad application in trading cryptocurrencies.
Although technical analysis is metrics-based and quantitative and that is why it uses the modeling of mathematics and statistics to understand the price behaviour.
In cryptocurrency, history is always seen to repeat itself and the price level moves in trends. The market tends to discount everything and this is the principle in crypto technical analysis upon which technical analysts make their prediction and market moves.
Therefore, crypto technical analysis tools help to foretell the price movement which guides investors in making a sound crypto investment decision.
To ascertain the value of an asset, technical analysis tools use historical data like volume and prices to understand the market structure and predict prices. The assertion to the historical behaviour of assets gives a stronger ground for sound investment decisions that will yield a greater profit.
How does crypto technical analysis tools work
Crypto technical analysis tools depend mostly on statistical indicators and chatting patterns. These tools use charts such as bar line chart and candlestick which are created with similar data and present data in different useful ways.
In the crypto market research technical indicators such as standard deviation, relative strength index (RSI), Bollinger bands and Average directional index are the mostly used technical indicators that help crypto investors and crypto traders in their quest to determine profit margins.
Just like the normal economy of demand and supply, the crypto technical analysis is the basic economic form in fancy terms. Technical analysis uses day historical study of demand and supply to anticipate the latest price trend.
However, crypto technical analysis tools can seem complicated for newbie crypto investors, but help to shed light into the profit potentials and margin of an asset as it gives a glimpse into the price movement which helps investors make better choices in investments.
7 best type of crypto technical analysis tools
There are many crypto technical analysis tools that are used to analyze the crypto market conditions to help make better crypto investment decisions.
Some of these tools are free and are applications that can be downloaded on mobile devices.
Here are 7 handy tools that you can use to make your crypto research and trading decision.
7 best type of crypto technical analysis tools#1: TradingView
This is a very popular technical analysis tool that is used by almost every crypto user.
TradingView is a cloud-based chatting and social networking platform that is compatible with the mobile phone. It is downloadable to the mobile phone and is used to scan through the crypto market and get information from different crypto exchanges such as Binance, Coinbase, Bittrex and Bitfinex.
TradingView enables you to get an insight into how top crypto technical analysts and traders position their portfolios.
This is possible when you hop onto the cryptocurrency market section and look at the ideas tap where you will find a bunch of crypto forecasts by numerous different traders.
This enables you to gauge the overall sentiment of the trading community by seeing if the overall or majority of forecasts are bullish or bearish, as well as the price target traders are keeping their eyes on.
These details are then gathered together to help guide you on making an informed choice on where you think the market will go and position your portfolio accordingly.
This is one of the benefits of Tradingview. The social networking platform is very active which allows ideas to be shared and published. Newbies can learn from the trading strategies of expert traders in the community.
Furthermore, Tradingview offers free services from their basic plan where users are allowed to chat different altcoins and cryptocurrencies.
7 best type of crypto technical analysis tools#2: CoinMarketCap
Want to be up-to-date with the latest crypto market news? Then you should consider signing up for this to stay informed.
Coinmarketcap is a Crypto research technical analysis tool that gives updates on different upcoming cryptocurrency events in the market to its users.
It uses information from users and users vote to give updates on events or coins in the crypto market.
CoinMarketCal is a cryptocurrency calendar which tells you about all the important upcoming events for that crypto project you may have your eyes on.
Now let’s say you’re interested in acquiring an avalanche and wondering what events are in the pipeline that could have an impact on the price of avax.
Instead of spending hours searching through telegram Twitter and medium, All you need to do is to search for avalanche on the CoinMarketCal and it will bring up all the listed upcoming events for a specific time period in a matter of time.
CoinMarketCal is a community driven site in which events are validated by the community. The voting right by community members enables them to downvote or upvote a particular event.
Fake events are downvoted by the community while real ones are upvoted. Be sure to check out the votes for a given event before acting on it.
7 best type of crypto technical analysis tools#3: Altcoins Season Index
Altcoins Season Index brought to us by the fine folks at Blockchaincenter.net. Most Crypto veterans measure the success of an altcoin trade against bitcoin and not the US dollar.
For those that have been in the crypto markets for some time, you probably have experienced the frustration of being pretty much all in on alt coins and seeing them plummet in value or standstill while Bitcoin season is in full swing while you are losing.
This is so because most crypto veterans measure the success of an altcoin trade against Bitcoin and not the US dollar.
Some people literally view altcoins as a way to leverage their Bitcoin and give them the opportunity to stack more sets. Others just think of Bitcoin as the benchmark in these markets. So if you outperform Bitcoin, you will outperform the market and vice versa.
It’s the same logic that traditional financial wizards use when they throw around the term alpha gains.
However, what all that means is that is usually optimal to have the majority of your crypto portfolio in Bitcoin before Bitcoin season takes off, and a hefty altcoin position before all season blasts off cycle in and out of Bitcoin and altcoins at the right time, while you are in line for the same gain.
However, most people like to dollar cost average and increase their old coin positions when the index is below 25 And start cycling their old coins into bitcoin once the index creeps above 75.
That way, you will realized the increase in SAT value in those alt coins while they are hot, and the quiet more altcoins when their Satoshi prices are relatively low.
Of course, this is by no means a bullet proof method. And the truth is that picking the right alt coin to get the best gains in alt season is still important. However, this tool is very useful when it comes to balancing the blend of alts and BTC in a portfolio.
7 best type of crypto technical analysis tools#4: Messari
The fourth crypto technical analysis tool on my list. This is the king of crypto research aggregation, and is used best to unearth a hidden gem of an old coin.
Messari has numerous features that allows you to see what is trending in the markets, to scout coins and to analyze them. It is used to take a data driven approach when identifying old coin prospects.
The Massari screener gives you a ton of ways to sort coin data by customizing filters that allows you to sift through projects through a huge range of stats like liquid market reported volume, transaction fees, volatility and more.
Another interesting part is that you can filter projects by sector and is very useful when looking for small cap plays in hot sectors like DeFi and if you are a micro cap gem Hunter, you can filter the market cap.
That way you can hone in on some of the smaller market cap tokens that have a much larger upside potential.
7 best type of crypto technical analysis tools#5: CryptoQuant
This data analytics website gives you graphical visualizations for BTC stable coin and altcoin fund flows.
CryptoQuant helps give you a better understanding on what other people are doing in the market.
One thing particularly useful tool here is looking at the chart for all exchanges and net flows. This helps get a sense of the net inflow or outflow of funds from crypto exchanges.
Now, most crypto traders only send crypto to an exchange to sell it. However, if it’s being withdrawn from an exchange, it’s with the intention of hoding.
So if exchange net inflows are going through the roof, It is seen as an indicator of a potential market dump that there are other players in the crypto markets apart from speculators like you and me and that would be a minus.
Crypto quant has you covered with a plethora of data and gives you access to chart showing the all miners outflow for Cryptos like BTC.
If miners are moving funds around then that could be an indication that they are about to dump some of those coins on the market. You can then improve your read on the situation there by looking at Inter entity flows, and checking a chart like the all minor to all exchanges flow.
7 best type of crypto technical analysis tools#6: CoinDance
If you are interested in monitoring things like hash rate, network nodes, transactions and things like that, then you should consider visiting this website.
CoinDance is used to get a bird’s eye view of the wider crypto environment and as well used to see how crypto adoption is going in various countries.
You can do all that by checking out local Bitcoins, Paxful and bisque volume data broken down by country.
Many of you will be well aware of the inflation situation in Venezuela, and it still seems that Bitcoin is being chosen by a ton of people there as a store of value. Another country that is seeing a big surge in local bitcoins trade volume is Egypt.
More so, another handy stats that you gain from CoinDance are things like Bitcoin and blockchain search volume on Google. Though, this is a lagging indicator.
However, if you see that search volume hitting is becoming all time high, then this is probably a pretty good indicator that shows that the masses are piling into crypto. So yes, you could use that data to help you decide whether or not to take profits.
7 best type of crypto technical analysis tools#7: CryptoPanic
I’m pretty sure many of you have spent countless hours pulling up numerous news articles when researching a crypto project.
Honestly, it’s a bit of a nightmare scouting around and pulling all that information together. I also hate feeling like I’m not constantly up to speed with the latest news hitting the wires. If that’s a problem you’ve had then you are going to want a crypto news aggregator like CryptoPanic.
In short, this tool trawls through a ton of trusted news websites and social media accounts to give you the latest news on all of the crypto space.
This is pretty damn useful for when that old coin you’re holding is blasting off and you don’t have the foggiest idea why.
It also helps you identify the types of events that are good for the price action of projects and what to look out for in the future.
If you want to save yourself hours going through numerous different news websites with endless ad spam, then CryptoPanic, should be your favourite browser tab.
If you have used any of these Crypto Tech Analysis tools listed above or even the ones not here, how about telling me the one you love best? Drop it in the comment section below.
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