Technical and fundamental analysis do not matter in cryptocurrencies.

[Bookwormlux]

It is a very debatable topic, but I still maintain my grounds.
Much of what happens in the name of technical or fundamental analysis anre mere predictions and nothing else. Before I continue, may I remind you that it is not charts and graphs that trade cryptocurrencies, but humans do. So there is no need for you to continuously get deceived by what some so called analysts say , making reference to their charts or graphs.

If you have observed, you would realise that things do not always go the way they always predict and this is enough for anyone to realise that they do not have any real knowledge to determine what happens or not at all. They are only predicting, and of course , we all know that crypto currencies are not predictable at all and anyone who wants to make you believe they are, is solely deceiving you


Despite my assertions, it is also important to mention, that you should not completely write off these analysts though, but use their predictions as only a guide, but not expect too much of them because they would most likely faill to meet the demand you have in mind..

What do you think about technical and fundamental analysis?

 

[btaliat]

I won't totally rubbish fundamental and technical analysis. Though, just like the poster have rightly said, the both analyses are mere prediction but if well followed they may be close to being accurate.

There is no scheme that doesn't have guidelines on how it csm be done or it should be done. This doesn't mean there won't be other ways by which those schemes can be done. There are some people who don't rely on these techniques while trading. They just follow the simple rule of demand and supply.

Most time there may be many reasons why fundamental and technical analysis would not work. I could remember the first quarter of this year when there was a slight bearish market, many assumed that it was because of vacation, while others claimed it was as a result of Omicron virus. The activities of whalers as well may not produce accurate technical analysis.

 

[funmi]

If you take out the technical analysis from the cryptocurrency market then the whole thing will become a kind of gambling which no one will really like to do, considering the millions that is been invested in the market on almost a daily basis. So I will not totally subscribe to the idea of anyone saying that the technical analysis is not relevant or needed before we lunch our trade, when we do it blindly then that will the height of risk I will never encourage anyone to take. I know there are times one may make some technical analysis and the system will prove you wrong by going towards oposote direction this is only normal as it goes to tell you that the system is not been controlled by anyone. As we all know it is a decentralized system which is strongly controlled by the forces of demand and supply. This is the simple logic behind the movement of the coins. Then there are times when they also respond to events going on all around the world. This is the same with forex trading. Making technical analysis gives you an edge and if you are good at making those analysis you will do well.

 

[minenovo]

Do you believe that cryptocurrencies develop totally at random then?

 

[Bookwormlux]

@btaliat

Do you believe that cryptocurrencies develop totally at random then?

I do not understand what you mean by crypto currencies developing at random but I can assure you that they are completely impredictable for one person to just sit down and come up with some charts and graphs, expecting things to go the way he or she may have predicted.
One has to just accept the fact that the law of demand and supply is what usually plays out in crypto currencies space. When the demand is high, the prices sky rocket to an all time high more than anyone may have imagined.

Same thing happens when a coin has done good already, it dumps in price and then those who may have invested in it blindly end up in losses in a way they never imagined.

That is why it is better for individuals to make sure they do their own research before finally deciding what they think of a coin.

Following your own instincts and acting accordingly is better than using what some one else shared. This is the fasted way to get easily frustrated in crypto currencies.
Those who really mean well for new investors always tell them to make sure that they do their own personal research too, before acting blindly and regret later

 

[Shaf]

It is a very debatable topic, but I still maintain my grounds.
Much of what happens in the name of technical or fundamental analysis anre mere predictions and nothing else. Before I continue, may I remind you that it is not charts and graphs that trade cryptocurrencies, but humans do. So there is no need for you to continuously get deceived by what some so called analysts say , making reference to their charts or graphs.

If you have observed, you would realise that things do not always go the way they always predict and this is enough for anyone to realise that they do not have any real knowledge to determine what happens or not at all. They are only predicting, and of course , we all know that crypto currencies are not predictable at all and anyone who wants to make you believe they are, is solely deceiving you


Despite my assertions, it is also important to mention, that you should not completely write off these analysts though, but use their predictions as only a guide, but not expect too much of them because they would most likely faill to meet the demand you have in mind..

What do you think about technical and fundamental analysis?

I would strongly disagree with this opinion. If both technical analysis and fundamental analysis do not work at all, no one would use them, and that means the market would simply turn to blind speculation that is no better than gambling and relying on luck.

The thing is, people are the ones buying and selling, but that's action have become predictable over time by showing patterns on charts. We also know and use previous history of people's reactions to news and development in the industry to predict how they will react, selling whenever there's bad news and buying when good news dominates.

Also, you can note that a lot of market makers tend to trade based on technical analysis a lot. A hanging man would put them high alert. If you know how to trade this, it would make sense that you wait for more confirmation using the next candlestick or other indicators before acting.