What Is the Science Behind Crypto Technical Analysis?
Crypto technical analysis is one of the foundations of the market. It involves the science of analyzing charts or historical price movements, allowing an analyst to detect patterns. Professional analysts traditionally performed technical analysis, but artificial intelligence is slowly taking over, prized for its speed and accuracy. The science behind crypto technical analysis Technical analysis in crypto has two core elements: the Dow Theory, which explains market trends, and charts, which are indispensable tools that provide a visual representation of price action. The Dow Theory can be summarized in six principles: All the information relating to an asset is already incorporated into its price. This includes valuable data, such as the asset’s profit potential and competitive edge. Three primary market trends exist, including the bull and bear markets. The primary trends undergo three majo...