Technical analysis

Technical analysis starts from the idea that price already reflects available information and that market behavior tends to repeat. Analysts study charts, mostly candlestick charts, to identify trends, support and resistance levels and patterns, and apply indicators such as moving averages, the RSI or volume measures to time entries and exits.

It is the dominant approach among short-term crypto traders, partly because many tokens lack the cash flows that fundamental analysis relies on. Market reports routinely quote technical levels for bitcoin and ether, and exchanges build charting tools into their apps. Some analysts combine it with on-chain analysis, which adds blockchain data such as flows into and out of exchanges.

Technical analysis offers a framework, not certainty. Patterns are open to interpretation, indicators often contradict each other and results depend heavily on the timeframe. Popular levels can work because many traders act on them, but they also fail, so risk management matters more than any single signal.