Here is a somewhat in-depth post, aimed at an audience that understands the basics and wants to develop their tools.
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🧠 : "Technical analysis or On-Chain? When to use each one?"
In the crypto world, every type of analysis has its role, but what works for Bitcoin may not work for a new coin. Let's understand the difference 👇
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🔹 Technical Analysis
✅ Depends on:
Charts
Indicators (RSI, MACD...)
Price patterns (like flags and triangles)
Support and resistance areas
💡 Useful for:
Day or weekly trading
Identifying entry and exit points
Coins with high liquidity and a long price history
⚠️ Its downside? Ignores real events and just follows the price.
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🔸 On-Chain analysis (Blockchain behavior)
✅ Depends on:
Movement of large wallets (whales)
Number of new users
Coin burn rate or issuance
Network interaction volume (Transactions, Fees)
💡 Useful for:
Assessing the strength of a project in the long term
Identifying accumulation or distribution periods
Understanding whether there is real interest in the coin or just speculation
⚠️ Its downside? A bit slow and not always suitable for scalping or quick decisions.
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🧭 When to use each one?
If you are buying a coin for long-term holding → Focus on On-Chain analysis + project evaluation.
If you are entering short positions or Swing Trade → Technical analysis is the foundation.
The best? 🧠 Combining both = clearer and smarter vision.
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📌 Free tools you can use:
↗️ TradingView for technical analysis
