The 3 Types of Crypto Analysis and Why They’re Important

Today I’d like to talk about something a little technical. Crypto analysis.

There are many different ways to analyse crypto data, but three are particularly important.

1. Fundamental analysis: Looks at cycles and news events to understand the value and potential future performance of cryptocurrencies.
2. Technical analysis: Interprets charts and candlestick patterns to predict future movements based on historical data.
3. Market sentiment: The analysis of human emotions and market psychology to gauge the overall mood of investors.

Many people analyse the first two and overlook the third. However, sentiment is a major driving force in the crypto market!

When the market is high, people will chase pumps, follow the sentiment of the crowd and make impulsive decisions without research (which they later come to regret).

They buy crypto when prices are sky high and place maximum downside potential in front of them instead of upside.

And when the market is down? The sentiment and collective opinion around crypto is down, too. These same people will be reluctant to invest at this time, but savvy investors are buying up a storm. It feels counter-intuitive, but this is how many millionaires have been made.

This is where knowing the market cycles and planning your moves with them is crucial.

The truth is, market cycles are generally quite predictable, but they can also be brutal. The emotional journey new investors go on is very real! But when you learn about market timing, sentiment and the importance of being a contrarian, you can absolutely master the crypto investing game.