Market analysis: It is the study of price movements and the factors influencing them to predict the future direction of the asset (such as Bitcoin or any other currency).
Divided into two main types:
1. Technical Analysis
2. Fundamental Analysis
---
1. Technical Analysis:
Relies on studying charts and historical price patterns and mathematical indicators to predict future movement.
Key terms in technical analysis:
| Term | Meaning |
|-----------------------|-------------------------------|
Chart | A visual representation of price movement over time (most famous: candlesticks).
Trend | The general price direction (Uptrend, Downtrend, Sideway).
Support & Resistance | Levels from which the price bounces (support: buying area, resistance: selling area).
Moving Averages (MA) | The average price over a certain period (like MA 50 or MA 200).
RSI (Relative Strength Index) | An indicator that determines overbought or oversold (if above 70: overbought, below 30: oversold).
MACD (Moving Average Convergence Divergence) | An indicator that shows the crossover of averages to determine the trend.
Volume | The amount of trades during a period, indicating the strength of the trend.
Breakout | When the price breaks a resistance or support level strongly.
How to learn technical analysis?
- Practice: Use platforms like "Trading View" to analyze candlesticks.
- Courses: Free courses on YouTube like Crypto Rover or Coin BUREAU.
- Books: "Technical Analysis of the Financial MARKETS" by John Murphy.
---
2. Fundamental Analysis:
Focuses on studying the economic factors and news that affect the value of the asset.
Key terms in fundamental analysis:
| Term | Meaning |
|--------------------------|----------------------------|
Market Cap | Total value of the currency (price × number of coins in circulation).
Macro News | Such as interest rate decisions from central banks or global events.
Inflation | Decrease in the purchasing power of the currency, which may increase demand for digital assets.
On-Chain Data | Such as the number of active wallets or trading volume on the blockchain.
Development & Team | Developer activity and project team credibility.
How to learn fundamental analysis?
- News sites: Such as CoinDesk and Cointelegraph.
- On-Chain Data: Sites like Glassnode and Santiment.
- Financial reports: Quarterly reports for companies or projects.
---
3. Tools to assist in market analysis:
- TradingView: The best platform for technical analysis.
- CoinMarketCap / CoinGecko: To track prices and market value.
- Glassnode: For on-chain data analysis.
---
Tips for beginners:
1. Start with simple technical analysis (like support and resistance and averages).
2. Follow the daily news (especially in new technologies or laws).
3. Use Demo Accounts before risking real money.
✅ "Good analysis + Risk management = Long-term success in trading."