The Enigma of Crypto Trading: Weighing Experience Against Historical Trends
The Enigma of Crypto Trading: Weighing Experience Against Historical Trends
I have been trying to figure out something about cryptocurrency trading and the volatility in its entirety. I see traders entering trade after taking analysis of the market, considering the market pattern as it has been from past till now. Also putting into consideration other factors like order block, trendline etc. If the market movements is based on that and all traders are experienced, that means they will mostly be on the winning side of the market.
Now for those that have known how bitcoin have been transgressing since its inception and a possible bull run after the halving. If the traders are to put that into consideration, will they still need to do their normal analysis before entering the market or follow the past pattern of the market that it usually does when an event like that happens? It’s really confusing me and amazed to know how traders still get to be profitable amidst this factors.
Yea, patterns repeat itself, trends never cease from repeating but the question the trader has to solve to be in profit is when does the trend has to actually repeat… Cause that’s where your analysis comes in, you’ve to analyze to know not to take a wrong trading position because fake-outs are there to test your psychology. Simply put, market history do repeat but the challenge lies on the trader to get an accuracy of the timing either through technical or fundamental analysis of the market.