{"id":14849,"date":"2022-04-20T17:04:44","date_gmt":"2022-04-20T11:34:44","guid":{"rendered":"https:\/\/zebpay.com\/?p=14849"},"modified":"2025-05-02T07:33:23","modified_gmt":"2025-05-02T07:33:23","slug":"understand-crypto-trend-analysis-and-buying-patterns","status":"publish","type":"post","link":"https:\/\/zebpay.com\/au\/blog\/understand-crypto-trend-analysis-and-buying-patterns","title":{"rendered":"Understand Crypto Asset Buying Patterns and Trend Analysis"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_66_1 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/zebpay.com\/au\/blog\/understand-crypto-trend-analysis-and-buying-patterns\/#A_tryst_with_Volatile_Markets\" title=\"A tryst with Volatile Markets\">A tryst with Volatile Markets<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/zebpay.com\/au\/blog\/understand-crypto-trend-analysis-and-buying-patterns\/#Basics_of_Crypto_Trend_Analysis\" title=\"Basics of Crypto Trend Analysis\">Basics of Crypto Trend Analysis<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/zebpay.com\/au\/blog\/understand-crypto-trend-analysis-and-buying-patterns\/#A_Continuation\" title=\"A Continuation\">A Continuation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/zebpay.com\/au\/blog\/understand-crypto-trend-analysis-and-buying-patterns\/#A_Reversal\" title=\"A Reversal\">A Reversal<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/zebpay.com\/au\/blog\/understand-crypto-trend-analysis-and-buying-patterns\/#Crypto_Technical_Analysis\" title=\"Crypto Technical Analysis\">Crypto Technical Analysis<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/zebpay.com\/au\/blog\/understand-crypto-trend-analysis-and-buying-patterns\/#Technical_Indicators\" title=\"Technical Indicators\">Technical Indicators<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/zebpay.com\/au\/blog\/understand-crypto-trend-analysis-and-buying-patterns\/#Candlestick_Charts\" title=\"Candlestick Charts\">Candlestick Charts<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/zebpay.com\/au\/blog\/understand-crypto-trend-analysis-and-buying-patterns\/#Support_and_Resistance_Levels\" title=\"Support and Resistance Levels\">Support and Resistance Levels<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/zebpay.com\/au\/blog\/understand-crypto-trend-analysis-and-buying-patterns\/#Moving_Averages\" title=\"Moving Averages\">Moving Averages<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/zebpay.com\/au\/blog\/understand-crypto-trend-analysis-and-buying-patterns\/#Chart_Patterns\" title=\"Chart Patterns\">Chart Patterns<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/zebpay.com\/au\/blog\/understand-crypto-trend-analysis-and-buying-patterns\/#Triple_and_Double_Tops_and_Bottoms\" title=\"Triple and Double Tops and Bottoms\">Triple and Double Tops and Bottoms<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/zebpay.com\/au\/blog\/understand-crypto-trend-analysis-and-buying-patterns\/#AscendingDescending_Triangles\" title=\"Ascending\/Descending Triangles\">Ascending\/Descending Triangles<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/zebpay.com\/au\/blog\/understand-crypto-trend-analysis-and-buying-patterns\/#Parting_Thoughts\" title=\"Parting Thoughts\">Parting Thoughts<\/a><\/li><\/ul><\/nav><\/div>\n\n<h3 class=\"wp-block-heading\" id=\"h-a-tryst-with-volatile-markets\"><span class=\"ez-toc-section\" id=\"A_tryst_with_Volatile_Markets\"><\/span><strong>A tryst with Volatile Markets<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>As is well-known, the crypto market is extremely volatile and there are massive price fluctuations. In such an instance, it becomes imperative for investors to follow a strategic plan of action while they are investing. Further, they should also be prepared for various market swings. Understanding crypto trend analysis and identifying crypto buying patterns will help investors make sound investment decisions.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-basics-of-crypto-trend-analysis\"><span class=\"ez-toc-section\" id=\"Basics_of_Crypto_Trend_Analysis\"><\/span><strong>Basics of Crypto Trend Analysis<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Before we dive deeper into the crypto trend analysis, here are the two patterns that you need to spot and conclude in order to understand how to position your trade. It is beneficial to place the decision of buying crypto based on these resultant predictions when you observe the patterns.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-a-continuation\"><span class=\"ez-toc-section\" id=\"A_Continuation\"><\/span><strong>A Continuation<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>When a crypto\u2019s price is predicted to follow more or less the same pattern after a\u00a0 brief period, it is called continuation. These patterns occur in the middle of a trend thereby conveying that the trend will resume after the pattern is complete.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-a-reversal\"><span class=\"ez-toc-section\" id=\"A_Reversal\"><\/span><strong>A Reversal<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>When a crypto\u2019s price is predicted to move in the opposite direction from the one it currently is in, then it is called reversal.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-crypto-technical-analysis\"><span class=\"ez-toc-section\" id=\"Crypto_Technical_Analysis\"><\/span><strong>Crypto Technical Analysis<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>While making predictions, an investor needs to look at the charts and analyse what the current and historic prices indicate. Crypto trend analysis is conducted by carefully analysing the technical indicators and forming patterns. The predictions are then made based on these two factors.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-technical-indicators\"><span class=\"ez-toc-section\" id=\"Technical_Indicators\"><\/span><strong>Technical Indicators<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Technical indicators help place the data in a coherent flow, making it easier to deduce patterns and predict which crypto to buy. One can remove the ambiguity from predictions and arrive at a more informed decision. This can be done based on actual figures, with data being placed together. Here are some common technical indicators:<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-candlestick-charts\"><span class=\"ez-toc-section\" id=\"Candlestick_Charts\"><\/span><strong>Candlestick Charts<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>The candlestick charts can analyse a visual representation of the price fluctuations. They consider four main components &#8211; the high price, opening price, closing price, and the low price. By colour coding, the movement, and candlesticks make it easier for someone to draw out a clear pattern.<\/p>\n\n\n\n<p>Green candlesticks represent the closing price on top which is higher than the opening price. The red candlesticks in turn reveal a contradictory trend.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-support-and-resistance-levels\"><span class=\"ez-toc-section\" id=\"Support_and_Resistance_Levels\"><\/span><strong>Support and Resistance Levels<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>The support refers to the level at which the price reaches the maximum possible bottom and tends to move up from thereon. Stop-loss orders can be placed at the support levels to protect investments when they go further down from the support level, reaching record lows. When the prices are about to increase, buying crypto at the lowest level works out to be a significant investment.<\/p>\n\n\n\n<p>Resistance levels are the opposite of support levels. They indicate the peak price the crypto asset achieves before falling again. A sell order at the resistance level can help investors maximise their profits without hoping for the costs to increase even further.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-moving-averages\"><span class=\"ez-toc-section\" id=\"Moving_Averages\"><\/span><strong>Moving Averages<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>One of the most popular methods of crypto trend analysis, which is Moving Averages, help determine the direction of the trend. It summarises the data points over time and divides them by the total number of data points considered for the calculation. Since it considers the latest price, it is regarded as a reliable indicator.<\/p>\n\n\n\n<p>Investors can use moving averages to track a golden cross when the short-term moving average is lower than the long-term moving average. Still, when the market reverses, the short-term moving average increases rapidly and cuts down the levels of long-term moving averages, thereby creating a cross on the graph.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-chart-patterns\"><span class=\"ez-toc-section\" id=\"Chart_Patterns\"><\/span><strong>Chart Patterns<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Once the data is plotted, it is relatively easy to understand the chart patterns and make suitable predictions. One must always look at the patterns before buying the crypto, as it gives a fair idea of the historical performance of the crypto asset.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-triple-and-double-tops-and-bottoms\"><span class=\"ez-toc-section\" id=\"Triple_and_Double_Tops_and_Bottoms\"><\/span><strong>Triple and Double Tops and Bottoms<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>In a candlestick chart, when the price touches a consistent level two or three times before reversing in the opposite direction, it is called a double or triple top or bottom. A double top is when the crypto prices reach the same highest level two times before switching to a downward trend. A triple bottom indicates similar lowest price levels touched three times before switching to an upward trend.<\/p>\n\n\n\n<p>These are indicative of a strong support or resistance level. Crypto buying plans can be based on these patterns.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-ascending-descending-triangles\"><span class=\"ez-toc-section\" id=\"AscendingDescending_Triangles\"><\/span><strong>Ascending\/Descending Triangles<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>An ascending triangle is formed when the price highs form a straight line over a period of time, but the price lows form a diagonal line, creating a triangle. This is indicative of consistent price resistance and increasing price support. Therefore, the price wouldn\u2019t fall as low as before.\u00a0<\/p>\n\n\n\n<p>The descending triangle is the opposite of an ascending triangle.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-parting-thoughts\"><span class=\"ez-toc-section\" id=\"Parting_Thoughts\"><\/span><strong>Parting Thoughts<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>By using a mix of various technical indicators and chart patterns, investors can learn to predict the values of the crypto assets and create tailor-made investment strategies. However, the crypto market is still highly volatile and carries a fair amount of risk. Making prudent choices before buying crypto is a must for every investor.\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A tryst with Volatile Markets As is well-known, the crypto market is extremely volatile and there are massive price fluctuations. In such an instance, it becomes imperative for investors to follow a strategic plan of action while they are investing. Further, they should also be prepared for various market swings. Understanding crypto trend analysis and [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":12408,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[14],"tags":[],"class_list":["post-14849","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto"],"acf":[],"_links":{"self":[{"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/posts\/14849","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/comments?post=14849"}],"version-history":[{"count":1,"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/posts\/14849\/revisions"}],"predecessor-version":[{"id":23285,"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/posts\/14849\/revisions\/23285"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/media\/12408"}],"wp:attachment":[{"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/media?parent=14849"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/categories?post=14849"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/tags?post=14849"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}