GET DAILY SIGNALSUsing Technical Analysis to Trade Cryptocurrencies
Investing is about considering a myriad of factors at once, with access to data being at the center of importance – the more data you have, the easier it is to make intelligent decisions. Investing in cryptocurrency is slightly different, however, as there is very little (if any) fundamental data to discern. No earnings reports, no profits/sales to monitor, very few valuation metrics to analyze.
In the absence of fundamental analysis, it is technical analysis that becomes the primary source of data used for trading. Indeed, technical and chart analysis can help make sense of price trends and allow us to anticipate market shifts. Once patterns are identified, one can apply some simple math to make smarter decisions about how to buy and sell intelligently.
Once an investor considers the value of technical analysis and chart trading, the question then becomes: is reading charts good enough?
The answer, I believe, is no. One must have a method for testing results and obtaining statistics to measure the efficacy of their technical trading process. Without statistics, the strategy is little more than guesswork.
Tickeron’s Artificial Intelligence is an example of technical analysis and chart-reading strategy that keeps statistics on predictions and also backtests patterns to see how effective they would have been. That includes but is not limited to the percentage of time the security reached its target price, the % gain or loss on the trade based on the AI’s advice, number of days the security remained in the pattern, and more. Having hard data can not only prove the efficacy of AI technology, but it can also help the trader decide whether they think the risk is worth taking.
Are you new to technical analysis and trading? Here are some basic terms and concepts to help you get started:
Channels
The space between the two parallel lines is called a channel. Within the channel, there can be ascending (highs are higher, lows are lower), descending (lower highs and lows), or horizontal (equal highs and lows) trends. To maximize your return, buy crypto when the price touches the support line and sell when it hits the resistance line. Breakouts are possible in bull and bear markets, but channels will generally be indicative of broader tendencies.
Triangles
If your resistance and support lines make a triangle shape, this usually means the market is somewhat unsettled. There are three different kinds of triangles: symmetrical (the market will likely continue whichever way it breaks the trendlines at the point of the triangle), ascending (prices will probably break the resistance line when it is horizontal), and descending (prices are expected to continue decreasing when they break a horizontal support line).
Other patterns
There are numerous patterns that can also help us recognize market evolutions. These include flags (typically occurring after periods of fast growth when prices rally sharply and then move to the downside. Sharp price rises preceding the flag shape are called flag poles; traders look for the price breaking out above the trendlines and enter a long trade), Eliott waves (used in tandem with a mathematical calculation called a Fibonacci retracement, Eliott waves can show us good buy markets), and candlestick patterns (a technique derived from 18th century Japanese rice traders that packs data from multiple time frames into single price bars, making it easier to predict price directions
Mathematical indicators
It is useful to familiarize yourself with some basic mathematical indicators that help us identify when to buy and sell a security. A couple of the most common is called a Simple Moving Average (SMA) and a Relative Strength Index (RSI).
SMAs are based on the average of multiple time periods – to calculate, add the closing price of the cryptocurrency over a number of time periods, then divide the total by the total number of time periods. When the SMA points up, the price is increasing and down signifies a decrease. Longer timeframes mean smoother moving averages.
RSIs can tell us whether cryptocurrency is being overbought or oversold, giving us a relative evaluation of recent performance. It is calculated through a formula that divides average growth by average decreases. An RSI of 70 or above indicates overvalue, and likely downward price correction. RSIs 30 or below often indicate the inverse.
These are just some of the patterns and indicators can make you a better cryptocurrency investor – the more you learn, the easier it is to make the right moves in dynamic markets.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
BTC.X's Stochastic Oscillator is remaining in oversold zone for 8 days
The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an uptrend is expected.
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where BTC.X's RSI Oscillator exited the oversold zone, 11 of 37 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 30%.
Following a +1.36% 3-day Advance, the price is estimated to grow further. Considering data from situations where BTC.X advanced for three days, in 123 of 424 cases, the price rose further within the following month. The odds of a continued upward trend are 29%.
BTC.X may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on October 22, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on BTC.X as a result. In 43 of 144 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 30%.
The Moving Average Convergence Divergence Histogram (MACD) for BTC.X turned negative on September 29, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 67 similar instances when the indicator turned negative. In 16 of the 67 cases the stock turned lower in the days that followed. This puts the odds of success at 24%.
BTC.X moved below its 50-day moving average on October 22, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for BTC.X crossed bearishly below the 50-day moving average on October 25, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 6 of 22 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 27%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where BTC.X declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 30%.
The Aroon Indicator for BTC.X entered a downward trend on November 01, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
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Fundamental Analysis Ratings
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