This is a thought leadership article written by Helen Liu. Helen is the Chief Operating Officer of Bybit.

In the fast-evolving world of crypto and web3, education and content creation are essential pillars for mainstream adoption. The industry was once dominated by niche communities, but today it reaches a global audience through influencers, key opinion leaders (KOLs) and content creators who simplify complex blockchain concepts.

As the Chief Operating Officer of Bybit, I’ve had the privilege of witnessing firsthand how education is shaping the future of web3. My career has been rooted in innovation, adaptability and global collaboration. At Bybit, our focus is on making crypto more accessible to everyone. We've seen how crucial education and outreach are in bringing crypto to the masses.

Crypto content creators and key opinion leaders (KOLs) play a crucial role in making blockchain technology accessible. They break down complex topics, such as 

 into digestible content that caters to both beginning and experienced users. In addition, by providing clear explanations and real-world applications they help onboard new users, while strengthening the knowledge base of the existing community.

Furthermore, these influencers exert a significant impact on public sentiment and market adoption. Their ability to amplify trends, introduce new narratives and engage audiences makes them powerful forces who shape investment decisions and industry trends. Whether they’re focusing on technical analysis or storytelling, they bring deep expertise and authoritative insights that bridge the gap between technical innovation and mainstream awareness.

Transparency is critical, especially when it comes to sponsored content and potential conflicts of interest. Misinformation can be costly in crypto, and it’s crucial for creators to disclose partnerships and provide accurate information in order to maintain credibility and build long-term trust.

While promotional content is a natural part of influencer marketing, educational accuracy must remain a priority. Audiences deserve well-researched, balanced perspectives, rather than exaggerated claims. Creators must fact-check information, source credible data and present content that genuinely helps users navigate the crypto space.

Today’s crypto education takes place across multiple platforms — YouTube, X (formerly Twitter), TikTok and dedicated learning resources such as 

. While high-quality educational content is readily available, the challenge is ensuring that newcomers can differentiate between well-researched information and misleading narratives driven by hype.

Crypto content exists on a broad spectrum. On one end, platforms such as Bybit Learn and reputable analysts offer in-depth, fact-based insights. In contrast, social media trends often fuel misinformation, leading to speculation and unrealistic expectations. 

Striking the right balance between engaging content and factual accuracy is key to fostering an informed community.

Why Bybit sponsored the Crypto Content Creator Campus (CCCC)

At Bybit, we believe that education is fundamental to driving blockchain adoption. That’s why we were the title sponsor of the inaugural 

, held in Dubai in November 2024. This event brought together over 200 global influencers with a collective reach of over 1 billion followers, reinforcing the importance of high-quality content creation in regard to crypto.

Empowering creators with tools and knowledge

During the event’s opening panel, our CEO, Ben Zhou, emphasized that creators are more than just marketers — they’re educators and storytellers. He highlighted the value of long-term community engagement over short-term promotions, stressing that authenticity and trust must be the foundation of crypto content. Zhou also recognized the power of microinfluencers, who connect deeply with niche audiences and drive meaningful engagement.

Through initiatives like CCCC, we at Bybit aim to empower content creators with the tools and knowledge they need to produce high-quality educational content. The event also showcased innovative projects, such as the CCCC Hacker House Challenge, which demonstrated how blockchain can revolutionize content creation. 

ur involvement in such initiatives reflects our broader commitment to supporting innovation, education and the growth of the crypto-creator economy. 

This year, the CCCC conference will be held in Lisbon, Portugal on Nov 14 to 16, and you can find out more 

Responsible content creation is key to crypto industry growth

As crypto adoption continues to grow, content creators, influencers and KOLs will play an even greater role in shaping public understanding and engagement. Ethical, transparent and well-researched content is essential to building a strong and informed global community.

At Bybit, we’re committed to championing education, innovation and responsible content creation. Through initiatives like the Crypto Content Creator Campus, we aim to equip creators with the resources they need to educate and inspire audiences worldwide.

A future where crypto is widely understood and responsibly promoted depends upon collective efforts from creators, platforms and industry leaders. By prioritizing education and accuracy over hype, we can ensure sustainable industry growth driven by informed participation instead of speculation.

Beginner

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Content creation and education in the crypto industry

A market correction is a decline in the price of an asset by more than 10%. Though the dip can be fairly small, it usually indicates that the crypto had rallied far from its established trend. Learn how to trade during the correction.

As we’re nearing the end of the first quarter of 2025, US president Donald Trump’s administration has been in charge of the world’s largest economy for only about two months. But in this short period of time, the 47th POTUS has already been making an outsized impact on financial and crypto markets — as the threat of tariffs with many of America’s trading partners, government sector layoffs and a new paradigm in the relationship between the US and European economies have sent investor sentiment into the territory of fear. Both stock market sentiment indices and the major Bitcoin 

 indices are hovering between the orange and red zones of fear.

As of the time of this writing on Mar 17, 2025, the stock market’s primary gauge — the S&P 500 index — has declined by around 8% since its recent peak on Feb 19, 2025, while 

 (BTC) is down by 23% since its all-time high on Jan 20, 2025, the day of Donald Trump’s inauguration.

As the crypto market declines, investors are becoming more unsettled, wondering if this drop represents another blip on the typically mercurial radar of Bitcoin or a prelude to a steeper downturn. Is this the market correcting itself after recent (possibly overly) optimistic gains, or are we witnessing the start of something scarier? In this atmosphere, it's important to distinguish between a market correction and a more profound decline known as a 

. In this article, we cover what a crypto market correction is, how it differs from a bear market and — more importantly — how you can prepare for it as a cryptocurrency investor.

A correction is a market decline that typically ranges from 10% to 20%. It signifies a relatively small but still noticeable drop in asset prices. The crypto market undergoes more frequent corrections than the stock market, due to its inherently 

. Over the past year alone (to mid-March 2025), Bitcoin’s price has experienced at least six corrections. In comparison, the stock market's primary index — the S&P 500 — hasn't experienced a correction within the past year. However, it's quickly approaching just that, with prevalently negative investor sentiment a 9% decline from recent peaks.

Is a market correction the start of a bear market?

A market correction — especially if it leads to a rapid decrease in asset prices — might seem worrying at first, but it’s part of the market's natural rhythm. In most cases, corrections end with a market rebound, i.e., a bull market, as asset price drops lead to increased interest to 

. However, if a correction is caused by significant underlying issues — such as price bubbles that have built up over long periods, or wider economic declines — it can be a precursor to a 

, which is characterized by a significant drop of over 20% in the market as asset prices decrease.

 interchangeably. However, others distinguish between the two concepts. According to some definitions, a market crash is a significant but short-lived decline of over 20%, while a bear market is a prolonged period of depressed asset prices that may last for months, or even years.

It's important to distinguish between a crypto market correction and a bear market, as the two require different strategies and approaches. Market corrections generally don't require the type of drastic measures from investors that bear markets do. As we’ve noted above, some analysts refer only to prolonged crashes as bear markets, while others use the terms “crash” and “bear market” interchangeably. If we assume the latter definition, then any market crash of over 20% — whether short- or long-term — can be described as a bear market.

Note that the definitions of a correction (10% to 20% decline) and bear market (over 20% decline) originated in traditional finance. These definitions have been used for the crypto market as well, but due to its higher volatility, the crypto market experiences corrections and bear markets considerably more often than the stock market does.

We noted earlier that the last time the stock market experienced a correction — as measured by the S&P 500 — was between July and October 2023, around one and a half years ago. Even then, the decline in the index was contained to 10%, just meeting the definition of a correction. In contrast, the crypto market has experienced numerous corrections (and three crashes) over the past year alone, to Mar 17, 2025. The image below shows these three crashes, which resulted in the decline of the 

 by around 22–23% each time. Additionally, we’ve annotated the ongoing correction that started to develop on Mar 2, 2025 — just days after the market rebounded from its last crash. This correction has so far (in ten days) resulted in a 12% decline in the total market cap.

Evidently, the crypto market is much more accustomed to corrections and bear markets than the stock market is.

How to prepare for a crypto market correction

Crypto corrections often arrive after periods of overly optimistic buying. They may also be caused by negative sentiment when crypto gets hammered — once again — by another influential regulatory authority. Investor sentiment may also turn negative and lead to a correction when traditional markets are trending downward. The last scenario is what we’re witnessing right now — the new Trump administration’s penchant for tariffs and drastic changes to budgetary spending has sent stocks downward, and the cryptocurrency market has duly followed suit.

When a correction is on the horizon, what can you do to best protect yourself? Below, we list several strategies that can limit the impact of a crypto correction on your investments.

Consider reducing your long positions when you sense early signals of a market decline. Some 

 or oscillators turning downward, can help you identify a market peak and an imminent downtrend.

 is a preset instruction to sell an asset once its price drops to a specific level. It’s one of the best trading strategies to limit potential losses during a market slump. Stop-loss orders have two primary benefits. First, they free you from the necessity to monitor prices and continually close your positions manually. Secondly, and importantly, these orders help avoid emotional decision-making during volatile downturns.

Placing stop-loss orders is just the tip of the iceberg when automating your trades. You can also devise considerably more sophisticated automated trading strategies by using 

. Bybit offers a variety of these bots to help you set key parameters for your trading strategy and execute it in a fully automated fashion.

 lets you automate your grid trading — a strategy whereby a set of orders is placed at several points above and below a certain reference price for an asset. The price points above the current asset price are designated as sell orders, while those below the current price are reserved to trigger buy orders. The corresponding sell or buy order is executed when the asset's price reaches a pre-specified point in the grid.

Another useful trading bot for your correction arsenal is the 

DCA is one of the most valuable trading strategies when expecting a correction or finding yourself in the midst of one. It involves splitting your total planned investment amount into equal chunks that are invested at predetermined time intervals, e.g., monthly, fortnightly, weekly or even daily. You make your regular fixed investments regardless of how the market moves.

As with automated trading strategies, DCA helps remove the emotional aspect from your investing. When you anticipate a market downturn, emotional factors can easily creep into your decision-making. DCA is one key way to prevent your emotions from affecting your trades.

DCA also reduces the impact of market volatility, since you’re spreading your purchases over time instead of buying at a single price point.

The Bybit DCA Bot we mentioned above isn’t the only way to automate your DCA strategy — there’s also the 

 product, which lets you set up your regular DCA investments in a few easy steps.

In the event that a correction continues to develop into a crash, the most crucial step is to avoid being influenced by emotions. If you find yourself amid a market crash, remember that all crashes, just like all corrections, are followed by market rebounds. The bottom of the market isn’t going to fall off — profit-seekers, both retail and institutional investors, will sooner or later move in to buy the dip. In fact, this could be an excellent opportunity for you to acquire assets with strong fundamentals, and at bargain prices.

Thus, stay calm, plan for the long term when prices inevitably recover, stick to strategies that eliminate emotional trading — such as automated methods and DCA — and perhaps even consider buying high-potential assets while they remain undervalued during the crash.

The concept of market corrections sounds unnerving. But unlike protracted bear markets, they’re typically short-lived and followed by price increases. The key steps to take in a correction are to avoid emotional decision-making, reduce exposure as much as possible, place some stop-loss orders and employ strategies like DCA and automated grid trading.

Notably, while stock market investors aren't accustomed to frequent corrections and crashes, the crypto market experiences them every year, multiple times. And yet, the multiyear, long-term established trend of the market has remained upward ever since the word “cryptocurrency” entered the financial vernacular. A stock market investor might feel intimidated by a correction — and even feel like fainting at the thought of a crash — but a savvy crypto investor knows that corrections and crashes are business as usual. As such, be prepared, but don’t panic. We’ve been through crypto market crashes more often than Bitcoin has been declared dead.

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Crypto market correction: What it means and how to prepare

Ethena Labs and Securitize have launched Converge, a settlement network designed to bridge traditional finance (TradFi) and DeFi.

Daily top performer — PancakeSwap (CAKE)

The S&P 500 gained 0.64% as softer retail sales fueled Fed rate cut speculation. Investors await Wednesday’s Fed decision. Gold hit a record $3,005 as geopolitical tensions and trade concerns fueled safe-haven demand, with strong support from central bank and ETF purchases. Markets await the Fed’s policy decision. The Coindesk Indices, which tracks the broader crypto market, fell by 0.60%, with Bitcoin and Ether up by 1.66% and 2.12% in the past 24 hours. Trade these markets and more with up to 500x leverage on Bybit MT5 using this 

Today’s top performer is CAKE, up 27.9% after PancakeSwap MEV Guard extends wallet support for improved trade security.

PancakeSwap (CAKE), launched in September 2020, is a BNB Chain-based DEX for BEP-20 token swaps, offering lower fees and faster transactions than Ethereum-based rivals. 

 now supports more wallets on BNB Chain, including Trust Wallet and Rabby Wallet, enhancing protection against frontrunning and sandwich attacks. Users can enable MEV protection with a simple one-click setup for most wallets, ensuring safer and more reliable trading.

Check out the latest prices, charts, and data of 

Ethena Labs and Securitize have launched 

, a settlement network designed to bridge traditional finance (TradFi) and DeFi. The platform will integrate Ethena’s USDe, USDtb, and iUSDe stablecoins with Securitize’s tokenized assets, facilitating institutional on-chain participation. Converge will feature both permissioned and permissionless financial applications, supporting lending, trading, and structured products. Five protocols, including Aave Labs and Pendle, have committed to building on the network. Mainnet is set to launch in Q2 2025.

Yesterday, BTC spot ETFs saw $232.3 million in net inflows, driven entirely by non-GBTC funds, while GBTC recorded no flow.

, allowing users to complete tasks and earn points for future rewards. Existing users from the old platform receive a 1,500-point bonus. To join, create an account, fill in profile details, and complete quests requiring X, Discord, and MetaMask connections. Daily check-ins also grant rewards, with more quests coming soon.

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Ethena and Securitize launch Converge to bridge TradFi and DeFi

Bubblemaps is a data visualization tool for blockchains. It uses colorful maps of circles to show important details. Learn more about how it works here.

 prior to their purchases. There's a lot of valuable information available for cryptocurrencies, but accessing and understanding it takes time. Bubblemaps offers a revolutionary solution: a 

 visualization tool that makes it much easier for users to see how blockchains operate behind the scenes. Should you try working with Bubblemaps? To see if it's right for you, here's what you need to know. 

 is a data visualization tool for blockchains. It uses colorful maps of circles to show important details, such as token distribution and disproportionate 

 token ownership — thus making it easier for investors to identify both trading opportunities and scams.

 in 2022. Before he worked on Bubblemaps, Vaiman was the CEO of a cryptocurrency investment company called Cryptonavia. During his work there, Vaiman noticed how difficult it was for investors to get a clear idea of how projects were run. Though there was often plenty of data revealing warning signs behind a project, it was hard to access and process this data. 

Vaiman was inspired to create a website where people could get useful information quickly. His vision has appealed to many investors, and Bubblemaps currently has over $3.2 million in funding from investors like Sierranova Capital, ChainGPT Labs and Arcanum Ventures.

Bubblemaps’ main purpose is to make cryptocurrency data more accessible. Traditional blockchain explorers often provide strings of data that aren't particularly intuitive. Meanwhile, the Bubblemaps site not only acquires data for you, but also uses its mapping system to make issues far more obvious. With “bubbles” that highlight info, such as linked wallets, the system hopes it can allow everyday investors to make more informed choices.

Bubblemaps also aims to become a watchdog for 

 and market manipulation. It regularly uses its tools to identify problematic projects and to draw attention to them. While users can analyze their own investments with Bubblemaps, the project also hopes to help people who don't work with the project’s software. The site's blog and social media feeds try to warn users of potential fraudulent activities involving trending cryptos whenever they can.

Bubblemaps primarily functions as a collection of software and coding. Unlike some other ecosystems, it doesn't have many blockchain functionalities embedded into its system. Instead, it operates similarly to standard Web 2.0 websites. Its creators designed code that scrolls through data about blockchain wallets and addresses, and then uses additional coding and display tools to sort and organize this data into easily readable Bubblemaps.

The Bubblemaps application can be accessed directly from the company's main website. Its system also allows other sites to integrate Bubblemaps as a 

 screener. With just a few lines of code, Bubblemaps analytics are natively integrated into other 

The Bubblemaps system contains a variety of features meant to improve blockchain data accessibility. The following are some of the ways users can enjoy Bubblemaps services.

This is the main feature of the website. Its users can search for tokens and click on a token to see its map. This visual representation of data looks like a series of circles and lines. The circles represent wallets holding significant portions of a token's total supply: the larger the circle, the more tokens the wallet holds. Lines drawn between wallets represent transfers, and highlight interconnected addresses. Clicking on the circles highlights the wallet's owner, and depending upon their privacy settings, you may even be able to see which individual or organization holds the tokens. 

Intel Desk is a community-driven feature for investigation. Users vote on which tokens need to be more closely examined. Winning tokens are carefully examined by Bubblemaps’ scam-detection squad, and users are told if any fraudulent activities have been found among a token's interconnected addresses and wallet holders.

The Time Travel feature lets users look at the past activity of multiple blockchains. You can see how maps shift over time, in order to get an idea of what's happening on blockchains throughout a coin's entire lifespan.

Magic Nodes is an advanced feature that shows interconnected addresses. Instead of just looking at wallet owner labels, Magic Nodes looks at how the crypto is actually moving around. For example, it can identify multiple holders who are all paying their gas fees from one address, so that users can see when an entity is using intermediaries to manipulate the market.

Bubblemaps has already managed to achieve a lot. In addition to designing its visual interpretation of blockchain data, the site has also natively integrated with various partners on other DeFi platforms. 

. In addition to the release of the token, the system also plans to add multiple features linked to the token, including upgrades to cross-chain analytics, AI cluster interpretation and P&L computation. 

For the future, Bubblemaps hopes to expand further into the crypto space. By adding multiple blockchains to its app and integrating with more systems, Bubblemaps aims to become the premier crypto and DEX screener. 

The BMT token helps power Bubblemaps’ Intel Desk feature. Holders of BMT vote for the cryptos they’d like Bubblemaps to investigate. BMT is also used as the reward method for those whose proposals are chosen for Intel Desk.

Residing on both Solana and BNB Chain, BMT has a total token supply of 1 billion tokens. Of these, 27% were available at launch. The rest will be unlocked on a 

Though BMT was only released in March 2025, it's already experienced some wild price swings. The token debuted at around $0.16, but prices quickly dropped to $0.07. Currently, BMT’s price is stable in the $0.08–$0.10 range.Bankless Times 

 will help keep its price up, predicting that BMT might reach $0.30 by 2025. DigitalCoinPrice is slightly more cautious, but agrees that some sort of price rise is likely. Taking into account current market growth,DigitalCoinPrice 

Looking to trade Bubblemaps tokens? Bybit now offers the BMT/USDT Spot trading pair and BMTUSDT Perpetual contract. To get started, you’ll first need to create a Bybit account, then fund it with cryptocurrency and navigate to the 

To celebrate this listing, Bybit is holding 

 where you can earn a share of a 2,000,000 BMT prize pool. 

BMT was hotly anticipated leading up to its release. The Bubblemaps tool is a favorite of crypto investors, and many people are interested in supporting the new project. Furthermore, the coin's link to the Intel Desk feature could help stabilize its price and create demand.

However, keep in mind that there’s been some criticism of BMT. Using the Bubblemaps tool on the system's own coin reveals that an outsized portion of the total supply is held by a single wallet. This has led to some 

, and the token’s price has stayed fairly low since this issue arose. While it's possible there's a good explanation for this distribution pattern, a lack of user trust could still cause problems for the new token. 

Therefore, investors who are interested in working with BMT token holdings need to maintain some caution. Furthermore, the crypto market always exhibits some volatility, so be sure to take that into account. As always, 

 — and avoid putting all of your funds into a single coin.

Using the Bubblemaps tool is a simple and great way to visualize the data from traditional blockchain explorers — making it quick and easy to spot potential problems with token holdings and distributions. Now that Bubblemaps is moving to the next level of its road map, fans also have the opportunity to buy and sell BMT tokens. Thanks to the hype around the platform, even investors who don’t use Bubblemaps may want to explore BMT.

Intermediate

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Bubblemaps (BMT): Bursting crypto's complexity bubble

Trading

Bitcoin

Technical analysis (TA) helps traders to forecast future price trends based on market sentiments, past price action & volume data. But is TA for you? Learn more.

In technical analysis, the main goal is to help traders analyze the past performance of a trading instrument and predict what may happen in the future. A trader who uses technical analysis, aka technical trader, will evaluate the price fluctuation, volume data, price levels, and trading sessions to 

. While technical analysts generally observe and interpret the price movements and patterns formed in the past to formulate trading ideas to forecast the next price trend.

TA is a common analysis used to assess stocks and other assets in traditional financial markets. But it is also an essential component to trading digital assets in the crypto market. In fact, technical analysis is quick and easy to understand, but it requires discipline and dedication to master it.

In the following section, we’ll look at everything a trader should know about analyzing cryptocurrency using technical analysis.

Technical analysis is used to forecast the future price movement of an asset by analyzing its past price action and volume data — TA focuses on assessing the historical trading activities and chart patterns to identify trends and trading opportunities.

 considers multiple factors regarding price. In fundamental analysis, the most effective price direction comes from economic events, fundamental releases, and geopolitical events.

On the other hand, TA focuses solely on past events, 

, and trading activity. The best part of technical analysis is that it doesn’t require you to be a finance graduate to understand it. Anyone with an understanding of the market forces of supply and demand and the core concept of technical indicators can easily spot favorable trading opportunities.

The foundations of technical analysis appeared in 17th-century Amsterdam and 18th-century Japan. However, modern technical analysis is a result of the work of 

, a financial journalist and the founder of The Wall Street Journal.

Dow was the first person to observe that a trading asset often moves within a trend and remains in a range most of the time. Later on, his work gave birth to Dow Theory, which gave further impetus to technical analysis. 

Technical analysis is a process used to study past price actions and anticipate future price movements. The core concept of price action is that the price in a trading instrument doesn’t move randomly. Instead, there’s a story behind the price movement, and technical analysts can read the price history like a book and predict what may happen next.

Price movement in the cryptocurrency market happens with the change in supply and demand. When supply exceeds demand, a price will move down, and when demand exceeds supply, the price will rise. 

But the main question is when and how the price will move.

Technical analysts’ primary duty is to calculate the overall market context and find the exact point from which the price has a higher possibility of making a move.

TA is the most reliable and effective way to anticipate price movement. However, it requires several tools and elements. For example, besides using 

, volume and liquidity traders often use various charting tools known as indicators. 

Let’s look at the core elements of technical analysis in the cryptocurrency market.

Price action uses price fluctuation and volume charts, allowing traders to predict what may happen in the future.

There are no specific tools for price action traders. However, traders can make profits by analyzing the price chart, while other traders include price levels, patterns, and indicators to observe the price action.

Let’s have a look at how price action pattern works in financial trading:

Sample of head and shoulder candlestick pattern

In the above image, we can see an example of a 

, a potential price action reversal pattern in which any breakout from the neckline indicates a significant price change.

Some other examples of price patterns are as follows:

Candlesticks are the most effective tool used in technical analysis. Japanese candlesticks (similar to OHLC charts) 

 most technical analysts in the world. The core idea of using candlesticks is to observe the current candle formation and, based on a single candlestick or group of candlesticks, anticipate what may happen next.

Candlesticks usually show reversal and continuation price setups. Using this tool as an indicator, any reliable candlestick reversal from a support level points out a good buying opportunity, as shown in the image below:

Now, we’ll move to how a continuation price format appears with the candlestick formation:

Overall, technical analysts should know how to analyze cryptocurrency using candlesticks from an appropriate 

Price action covers the nature of trends. During an impulsive trend, the price makes new highs or lows, with aggressive buying or selling pressure. On the other hand, in a corrective trend, price barely makes new highs or lows. 

Let’s see an example of impulse and correction from a Bitcoin chart:

In mid-May 2021, Bitcoin’s price was in a correction. After testing the $60,000 resistance level, an impulse trend led to an aggressive move from $60,000 to $30,000 in just 12 days.

These aggressive movements indicate the price’s momentum. When the impulsive movement is in the seller’s direction, the market momentum is bearish. In that case, traders should take only sell trades. On the other hand, buying and holding a cryptocurrency is profitable when the market momentum is bullish.

In the beginning phases of technical analysis, there was no electronic charting system. Traders used to write prices using paper and pen.

Now, technology makes trading more effective, especially in the cryptocurrency market. Traders can use 

 to see the possible price movement in a more predictive way.

Technical indicators show the current position of price based on specific metrics. However, to obtain a reliable outcome from technical analysis, traders should know how to use several important indicators.

In technical analysis, there is no way to ignore indicators. Traders should know how to use the basic indicators in the following section.

RSI is a momentum indicator that plots results on a scale of 1–100. It shows the overbought and oversold conditions of assets. If the 

 moves below 30, it indicates a bearish pressure in the price. 

Moreover, when the RSI indicator moves to the oversold zone, i.e., above 70, it means an asset is overbought and may experience price bounces. Because RSI is a momentum indicator, the price can stay overbought or oversold for a long time. Therefore, as with most other technical indicators, RSI signals are more efficient and reliable with long-term trends and when combined with additional indicators.

RSI indicator showing the overbought and oversold levels.

The above image shows how the price changes its direction from the overbought and oversold areas.

 shows the average price of a crypto trading asset for a particular time frame. A daily MA of 20 represents the average price of the last 20 days’ price movements. The core idea of using a moving average is to anticipate price movement by observing the price’s behavior.

For long-term price analysis, simple moving average (SMA) works well, while for short-term price analysis, exponential moving average (EMA) is effective. The best part of using EMA is that it places more weight and significance on the most recent data points. It identifies bullish or bearish signals based on crossovers and divergences from the historical average.

Based on the above picture, the long-term trend is bearish as the price remains below the 200 SMA. Therefore, traders can find sell signals using the 20 EMA toward the selling direction.

 is another commonly used momentum indicator. It shows the connection between two key moving averages. When a MACD histogram moves above zero, it indicates a bullish market. Likewise, if the reading crosses below the signal line, it shows a bearish price movement for an asset.

Therefore, the primary idea is to determine the upcoming price direction by observing the location of the histogram. Another approach is to match highs and lows with the price, thereby finding divergence. When divergence occurs, it’s a sign the price is likely to change its direction.

In the above image, we can see Bitcoin’s price moving down to 35,000 and forming a regular divergence with the MACD. Later on, the price moves higher, followed by higher highs in the MACD histogram.

 are a technical indicator used widely in various markets, including stocks, futures, and currencies. In the 1980s, John Bollinger developed this tool that grants exceptional insights into the relationship between price and volatility. Additionally, you can use Bollinger Bands to identify both overbought and oversold levels. This capability can help you both as a trend-following instrument and for finding breakouts. 

How do we calculate Bollinger Bands in the daily time frame?

To assess the SMA of security, we commonly utilize a 20-day SMA. This is the initial phase in calculating Bollinger bands. As the first data point, a 20-day SMA averages the closing prices for the initial 20 days. The following data point would drop the maximum price, add the price on day 21, and take the average. The standard deviation of the security’s price will be attainable after that.

The breakdown of the mechanism of bollinger bands in a trading chart.

The upper and lower bands work as dynamic support and resistance to the price, while the middle point shows the average price of these lines. Thus, any rejection from the upper and lower bands can be an entry point for a trade, and the middle point is the first take-profit level.

 is an indicator that uses the core concept of supply and demand in regard to price. We all know that price fluctuates with changes in supply and demand, but there is a price level where supply and demand remain almost the same. This level is known as the equilibrium point.

In financial trading, a pivot point represents the point of equilibrium. When a price approaches this level, it may work as a support or as resistance. Moreover, the pivot point includes multiple support and resistance levels below and above the equilibrium point, which can also serve as price shift points.

Any lines above the pivot point are resistant in the above image, and those below the pivot point are supported. The basic approach is to find a reliable candlestick formation from pivot points and to consider the support of, and resistance to, take-profit levels.

Fibonacci numbers are an important mathematical phenomenon found everywhere in the natural world. In financial trading, 

helps traders identify the correction and extension amount of a price. For example, after an impulsive trend, traders can expect 38.2%, 50%, or 61.8% Fibonacci correction before making another impulsive move.

Additionally, the Fibonacci extension tool helps predict how long a price may go after a correction. It uses significant values like 161.8% or 261.8% to indicate a potential take-profit or price reversal point.

Fibonacci Retracement and Extension illustration.

The above image indicates 38.2%, 50%, and 61.8% retracement in the Bitcoin chart,  with its price ultimately dropping to the 361.8% extension level.

On April 25, 2021, Bitcoin’s price rejected the $49,000 support level with a bullish daily close. Later on, the price made a new high on May 12 with the price of $57,732, creating hope for a new all-time high above $60,000. At that time, most of the technical indicators showed buy signals on the daily chart. However, strong fundamental news regarding a 

, which crashed the market from $59,507 to $30,065 in mid-May.

The above scenario is a perfect example of one in which technical analysis has failed due to the unanticipated rules and regulations imposed on the crypto market. Here traders are using multiple indicators and trading tools to anticipate the price movement. However, as always, there is no guarantee that the price will follow the indicated direction. Plus, TA can be inaccurate due to personal bias and subjectivity.

In technical analysis, the biggest drawback is that any fundamental event, or perhaps geopolitical news, can invalidate all technical outlooks. The ultimate challenge is to take maximal benefit from trade with minimal risk. 

The best approach is to study a cryptocurrency’s background and obtain reliable information about it. Identify recent news and developments, and match the technical analysis with the direction of fundamentals.

Another drawback of technical analysis is that it depends on past price actions. Technical analysis usually fails given if the market does not present a clear pattern or trend. To add on, it is often difficult to find previous data for new coins. Even if previous data is found, it might not be reliable due to volatility.

Despite dealing with empirical data, technical analysis can also fail during periods when markets don’t present a clear pattern or trend.

Fundamental analysts emphasize qualitative factors, whereas technical analysts focus on historical price charts to assess an asset’s performance. While both generate an efficient market hypothesis, the technical trading strategies still rely on how a trader perceives the information from these analyses.

The fundamental analysis (FA) considers the macro conditions of the assets to predict the future price movement. For example, the high consumer adoption in 

) or the strong support from the community may be the key drivers for DeFi’s token price surge. Thus, taking these factors into considerations help traders to predict future movements of an asset, whether it’s overvalued in a 

Technical traders tend to assess the market psychology through quantitative data analysis. Technical analysts tend to be more objective in drawing reasonable trading decisions. The use of market data in technical analysis like historical data, chart patterns, past trading activity, and market sentiment eliminates the basic assumptions. Traders then use the identified previous market patterns to predict future price trajectories. As such, TA is more suitable for 

Still, to have the best of both worlds, traders are recommended to take considerations into technical and fundamental analysis to formulate a best trading strategy.

In technical analysis, the main goal is how to analyze cryptocurrency and predict future movement. The good news is that financial instruments follow their past price actions most of the time.

Keep in mind that no technical analysis is perfect, and using TA cannot guarantee you 100% accurate signals. Professional technical analysts always consider the weakness of every trading signal and keep a risk management system as a high priority. 

Why Is Technical Analysis Important to Trade Bitcoin?

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