Technical Analysis of Cryptocurrencies

As of Oct 17, 2021, Bitcoin (BTCUSD) has decisively reclaimed the psychologically key 60k whole figure level, and is suddenly just a day's volatility from the record high formed in April. How are some technical analysts now arriving at a forecasted level of USD 100k for BTCUSD on the bull market rally extension that appears to be underway?

To help understand crypto market movements, Tradable Patterns launched its first book Technical Analysis of Cryptocurrencies in February 2018. This book provides the foundation for understanding technical analysis, and for being able to follow Tradable Patterns' 4 newsletters: Today's Top 3 Trades, Equities & ETFs, Coffee Daily and Crypto Weekly Outlook. Crypto Weekly Outlook covers crypto industry fundamentals and technicals/fundamentals updated each Sunday on Bitcoin, Ethereum and Ripple.

Given the sheer volatility in crypto markets, being able to improve the timing of trade entry/exit through technical analysis is paramount. By understanding that price action, whether in cryptocurrencies or traditional asset classes like stock, bonds and commodities, reflects human psychology and all known information (whether publicly or privately available), traders can begin to anticipate price moves based on historical patterns. Recognizing the most popular approaches to technical analysis, traders can drastically improve their ability to see past media hype and rumours, and to trade more objectively during market bubbles and subsequent crashes.

The author first came across technical analysis in the late 90s, not believing it until he began teaching it to clients in 2005, and quickly reaping benefits when applying it to his own trading. He now uses technical analysis to drive more than 50% of his trading decisions, with the balance of consideration coming from fundamental analysis and management of trading psychology and risk management. The technical analysis concepts learned in this book can be applied to all liquid financial markets across all trading timeframes. A high level understanding of cryptocurrencies and their technology, along with standard risk management practices is assumed.