Recently, more and more investors in the cryptocurrency market are asking themselves: why does traditional technical analysis, which used to be a reliable tool for price forecasting, no longer yield expected results? The answer lies in the changing behavior of the market participants themselves.
In the past, investors carefully studied projects, their goals, roadmaps, and technological advantages. They believed in the long-term potential of cryptocurrencies and were willing to hold assets for an extended period, even enduring periods of volatility.
However, recently the situation has drastically changed. Many investors have lost faith in the fundamental aspects of projects. They have become more focused on short-term speculation, trying to quickly profit from price fluctuations.
Such a change in behavior has led to the market becoming less predictable. Cryptocurrency prices, regardless of their actual value or potential, began to move chaotically, reacting to news, rumors, and sentiments on social media.
As a result, technical analysis, which is based on historical data and charts, has lost its effectiveness. Indicators and patterns that used to provide accurate signals now often lead to erroneous predictions.
Investors who continue to use traditional technical analysis often incur losses. They become disillusioned with the cryptocurrency market and lose faith in its potential.
What should be done in such a situation? Some experts recommend focusing on fundamental analysis, studying technologies, development teams, and market potential. Others believe that one should adapt to new realities and use more flexible trading strategies that account for high volatility and unpredictability of the market.
In any case, it is important to understand that the cryptocurrency market is constantly changing, and what worked yesterday may not work today. Investors need to be prepared to adapt and learn to remain successful in this dynamic environment.
