Bitcoin Forum

Its better to have both when you do have the chance yet we know that fundamentals doesnt come out very often which means if you do rely on news and other aspect then you would really be on stagnant knowing that
this market doesnt generate out time to time news unlike on traditional markets like forex and stocks.

Fundamentals and technicals can be correlated but we know that no matter how good your analysis is, it is still bound to fail yet this market is always been unpredictable.It can neither break nor follow those kind of analysis.

When it comes to importance then it all vary on which one do give out profit into you but majority is been using technicals in regards into their trades.

Ahh.. So the influencers that can be found in the environment are called Fundamental Analysis :o. Now I know! Thanks mate.

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But like what you've said, traders usually use both methods as it helps them to be more effective in daytrading. So what's the point of choosing one only. Anyway, if there should be only one which weighs greater then I would choose the Technical one. You don't need to know every detail of the news because it will manifest its effects on the chart later on. Thus, reading the trend requires more focus than anything else (IMO).

For me, this two type of analysis are far different.
So when you are trading and use either of the two (fundamental or technical analysis) then it's ok, you still foundation and bases why you take this trade.
For me, I recently use more on technical analysis for trading.

Depends on the situation/context.

Day trading (short term returns) will rely more on technical analysis (chart, onchain, sentiment)
Long term investment, better to go deep in fundamentals.

Both have their difficulties.
Betting on older projects with proven track record (BTC/ETH/LTC...) is the safest but probably the less rewarding % wise

These two types of market analysis is a perfect complement for each other. It's not that which type of analysis you trust the most, but it's the source of the analysis. Nevertheless, there's no way someone could predict the price accurately, despite the fact that these are so called "analysis", but these are just also a prediction backed up with relevant analysation of past and future references.
I guess there are more fundamental analysis sources than the TA's nowadays. So, the question should be, which sources do you trust the most?

It’s not an either or. You want to have a fundamental analysis view or bias for a certain narrative assumption and you would then use technical analysis to have higher efficiency entries and exits.

I totally agree with you. Its always better to know both kinds of analysis in trading because they are both helpful. Understand two different concepts will help you to understand the market deeper and therefore, there will be more information generating for you in order to put a trade. However, having too much knowledge can be a double-edged sword because you dont know where and when to use your analysis. The practice is certainly necessary so as you can become more flexible and open-mind on each unique edge in trading

Trading is depending on you. Everything is related to your hobby and your disciplines. The more disciplined you are, the more stable your income will be

Most technical traders will tell you everything (including fundamentals) is reflected in the price chart. I tend to fall into this camp. Price is the truest expression of supply and demand. Strong underlying fundamentals show up as weak supply (people don't want to sell) and strong demand. Vice versa.

I do like to keep track of fundamental events. For example, when nonfarm payroll data and unemployment numbers get released, or when CME quarterly Bitcoin futures get settled. These can catalyze price moves even if they aren't necessarily causing them.

If we expert on technical or fundamental analisys,we will be good traders. having routine research for every project will give us hidden information that could be potecny as future GEM. by learning technical we understand price action and its analisys, and by fundamental we will know what 's new that will released in near time so will give influence to market or price. expert on  both of them make us best trader ever, and easily get profit from every new coins.

It depends on the trading system and the profile of the trader, if you will ask me if what is more important; my answer is technical because I'm used to it and my trading system are purely base on technical analysis. I know that news are important but I'm not a trader who are relying on it, I respect the ideas of some fundamentalist; fundamental analysis are actually working for some people but for me it is not working and it is the reason why I keep focusing only in technical analysis. If you want to learn technical analysis, this forum can help you and remember that we are now in information age where you can access a lot of concepts and ideas about technical analysis by searching it in the web. Find a trading system that can help you to build your own foundation that can give you profitable trading career.

You must focus first on reading the candlestick, a lot of people are failing in this basic part and you should master it and also the reversal candles because it is important. After that try to master the identifying of trends because in technical analysis, "trend is your friend" wherein you should base your decisions on what is the trend of the coin that you are currently trading.

It is as simple as that, while both tools can be used to earn money in the markets their nature is completely different and as such they apply in different cases, anyone that is looking to trade their coins in a very small time frame should use technical analysis and nothing else because at that time fundamental analysis is not going to have almost any effect on the charts.

But if you are looking to become a positional trader or an investor then fundamental analysis is more important than technical analysis and while is important apply both the truth is that you could safely forget about technical analysis in those conditions and only care about fundamental analysis to decide whether or not you invest in a coin.

I think both of these methods don't work properly on the crypto market because it's not a regulated market. I still tend to go with fundamental data

Fundamental analysis is at the core of trading (crypto or otherwise). This is just like theoretical knowledge. But for practical applications you need to be well versed in performing technical analysis. This is the practical knowledge part. If you can't do this then it's better you hire a fund manager kind of guy to do the analysis for you.

Both technical and fundamental analysis can be made to predict a possible future price. Just like you have said, both do not offer 100% on anything but when you look at the past history of some coin, you will discover some repeated pattern which makes it easy to predict the price however, news and event can sometime influence this repeated chart history but both can provide a baseline for predicting the price at a point

When it comes to percentage gains when these established coins wont really give you that much specially on a shorter time frame this is why majority would really end up on recognizing into those projects that has less price but actually a more risky type kind of decision imho.

Involving with trading will matter on which path you would choose into and it would be subjective because not all would really have the extra time to deal with the market on an active manner thats why they do chose
on long term swings and basing of with news or fundamentals.

For people who do have the ample time then active trade would suit them and as you mentioned both do have their difficulties but you can actually switch up in both methods depending according to your likes
or preference.

If I had to choose between the two, it's easier to follow technical analysis because you are right there, and it's made to for you if you are the one charting it. The consequences for it are that you would be biased to your chart, and if it went the opposite direction, you would get discouraged unless you have a solid trading plan.

On the other hand, I would consider fundamental analysis if and only if it is significant and relevant to the current situation that we have now. Like recently, with the pandemic, the price has gone down, and it recovered.

Basically, it depends on the situation. It doesn't matter if you use TA or FA. What matters is to stick to your plan and be strict about it.

I tend to agree with this matter. You can use both of them too if you want to have a good forecast of price movement.

Either which analysis you will use that is the same predicting the market price movement.
Don't stick any of them if there's an opportunity to grab then, grab it. For example, you have technical analysis and you have drawn your chart already, but there is an opportunity that might you will get profit. So you will refuse it because you need to follow your chart. That's the wrong perception, you need to balance them and analyze very well. You can always have a comparison between both TA and FA to get an accurate results in predicting.

I think the most important factor would always be the risk that you are willing to put into trades and putting a stop loss in order to limit the amount of losses that you could incur while having the open position on the market. First of all I think the understanding of different factors in trading should be important as well, no matter what you are going to do, have a trading plan and follow it.

It's a matter of bias or subjective judgment imo. As long as you aren't swayed by possible mistakes, since you've taken into account mistakes and errors when doing your analysis, any types would do. It's not like either analysis' hold an advantage against each other, both of them have their own strong points and weak points. Not to mention that they have different usage based on what trading you're really doing. Still, there's nothing wrong with learning and developing the both of them, since any knowledge you can get can be used one way or another in trading.

A plan is a natural prerequisite in doing everything, not just trading. Sure, doing yolo moments once or twice could prove to be helpful, but life ain't really easy for everything to go your way. Besides, yolo could also be considered a plan, just that there's no plan.

As a day trader technical analyst is more important to me, I mean I just need to see some news first before I start to trade and the rest I'll just focus on technical analyst. It would be different if the movement price change drastically then I'll find the information again, without that I never check again.

Sometimes, that we think is a good news and we expect that the price will change but it doesn't happen. So it would make me confused if I combine the both strategy if I choose a day trader. Because I just need a little time to wait after I got an entry, I only use 1 hour time frame and 15 time frame.

I most oftenly use technical analysis but I see to it that I checked fundamental analysis for further knowing and understanding where does that coin will be possibly leading (whether go pump or eventually dump). Both are significant and both can be useful in trading but it all depends on how we treat those tools to become efficient in our trading. There is a great impact honestly, if we incorporate it together in our trading. However, not everyone are fond of using both of these.
 
 On the other hand, the success rate is greater when using these two methods ( both TA and FA) since analyzing the crypto market is confusing.

I believe more in technical analysis than fundamental analysis, because based on my experience during the last few years of trading.
Indeed, technical analysis can easily determine the selling / buying price, because technical analysis is quite accurate in predicting
price movements. Meanwhile, fundamental analysis is often inaccurate for determining price movements in the market.

I agree with what you said cause Technical was what most crypto trader use and Fundamental analysis shouldn't be excluded in other not to miss out great opportunity but the trading analysis is just a way of predicting the market next direction. However, a single whales decision can change the whole analysis and what's important is knowing when to exit the market and having a good stop loss strategy.

I believe that you can combine them both if you really want to make a change, you do not have to follow just the one or the other, you can make both of them work at the same time if you really want to. For example? You could check the TA as much as you want, start with that, it is the most important part and with more you check the more chances you are going to face because putting time in research is the most important part.

Let's say you did all the legwork and you found something that could help you out, that moment you switch into fundamental, at that point you start to read the gossip places and you start to read the news and that way you now have one coin you want to invest in because of TA but you also know what people are saying about it as well.

As a forex trader I focused majorly on technical analysis for my trading decisions while taking into cognizance the importance of fundamental analysis as the mover of the price ie price volatility I always avoid trading one hour before or after any news which I believed will rubbish whatever analysis I had made before pulling trigger to buy or sell.
While some traders focuses more fundamental analysis in taking their trade despite the massive dumping and pumping ie high volatility occasioned in that period of time while I believed both analysis are very important in any trading plan and strategy.

I believe that there is no need to look for which analysis is the most important, since fundamental and technical analysis are fundamentally different from each other and provide separately very important information for an investor and a trader, because fundamental analysis provides general information about a coin - is it worth buying at all and what there may be prospects. And technical analysis provides an opportunity to predict the course of a certain coin within a specified time frame.

echnical analysis comes with a word technical which sounds hard but it is really hard looking at the charts when you have no experience on trading but fundamental analysis looks doeable based on its definition because it says data from the news and events  . this is also more accurate because you arent depending on past data like what you did on t.a but you can make your move based on the current or future happenings let say if theres a good news or a bad news related to cryptos .

Long story short: I use fundamental analysis for finding the potential direction and technical analysis is needed to find entry/exit points. For finding the trend direction using the indicators is useless unless there is a schedule on the calendar during important news. Technical analysis is based on statistic data which is collected from the chart itself, why am I supposed to play with indicators instead of directly analyzing the chart itself?

Trend direction is completely technical in my view. The reason they say markets can stay irrational longer than you can stay solvent is because fundamentals can diverge from price for long periods of time. TA is for both determining trend direction and entries/exits.

Fundamental analysis is all about finding value, as in cheap price vs. expected returns. So a fundamental investor might buy into a bear market on the basis of value alone, even though that means trading against the trend.

Fundamental Analysis + Technical Analysis is equal to a good profit.

We should not argue with this two because we can choose either an FA or TA depending upon the strategy and methodology that will support your trading. It is also good to know the three kind of analysis and master them all. I said Three analysis because Sentimental Analysis can be also use in trading. It is an analysis that shows how a certain trader react with their trades. As a trader, we should not just base our movement upon the chart or news but how does market players play the market. This is what we called sentimental analysis.

TA or Fa, these are just tool to guide us in trading. But most of the time, it value a lot when a coin is good at fundamentals or strong news and development as well as having a bullish chart.

Right now, fundamental would have helped you to realize that bitcoin could have gone down whereas TA wouldn't help you to realize that, there was too much things showing that bitcoin could be going up, even the most advanced trader was saying that $12k was a wall that we are trying to knock down and that wall can't handle to stay up forever so one day we will go up, that was the logic for a long time.

Unfortunately they were wrong, but if you worked with Fundamental instead, you could have seen that it is actually doing not that great, not as great as TA shows, there was too much pressure. All those times we tried to go over $12k and didn't? That means someone didn't want it, and buyers are not going to just keep on buying from that level to make people richer so it went down.

But that is precisely the issue, you can use any technique that you want in order to try to make money from the markets but very few people have a complete trading plan that tells them what to do in exactly every single situation they can face, which means that just when they need it the most they are left to their own devices trying to improvise when the market is moving very abruptly.

So I will suggest to anyone that is thinking about trading and about using any of those techniques to develop a very concise plan about what they plan to do in every single circumstance because that is the only way to be successful over the long term in any market.

How would fundamentals have predicted anything? Fundamentals have very little to do with short term price action. That's why it's so commonly said that markets are irrational.

You raise a good point about trader sentiment. I'm really big on contrarian trading. When everyone is thinking the same thing, the opposite usually happens. Next time it seems like all the traders are planning on BTC going to the moon, consider trading against them. ;)

What many people don't realize is that being a good trader is all about reacting to price action, not predicting it. When we were trading at $12K, predicting whether bulls would fail or not was a gamble. Stop selling below the $11,100-$11,200 breakout zone was much more of a sure thing.

Im actually on that contrarian side where i do go to the opposite way when everyone is already on that optimist side where they are boosted out on the price increase.
I heavily agree on that price action matters yet not all do decide to be a hodler anyway which means fundamentals are somewhat irrelevant and doesnt really come out
from time to time. It doesnt matter which one you do use as long you do see for it to be effective on being profitable then better stick to that.
Its a matter on how you do make use all of the info that you can grasp on.

In my opinion Technical Analysis. The cryptocurrency market is driven by speculations and fundamental analysis is not yet applicable for now. We have to wait for the market to be mature first before we can consider using fundamental analysis.

You have to make the combination of both FA and TA to get the best output. Relying on only one will cause you loss eventually. In the past week, I believe a lot of TA buddies have lost huge amount of money despite they were having different signal on different crypto. So, if you don't combine both, you will have loss at some point.

While it is obviously the optimal solution at the same time it is by far the hardest, just mastering one of those aspects is incredibly difficult and most traders never master one during their lives so mastering both of them should prove to be even harder, and we must also remember that due to their different natures you could even receive contradicting signals from both of those schools of trading confusing even more the subject for those that are starting their careers.

As such it is my opinion that at the beginning new traders should focus only in one of those disciplines and only try to learn the one they are missing once they have been in the market for years and have obtained good results.

FA is more important than TA when it comes to crypto market because most of the time our technical analysis predictions will go wrong due to the market sudden changes especially due to manipulation so it is important to concentrate on the fundamental analysis more than the technical analysis.

For forex market it would be good to know both technical and fundamental analysis. As for crypto market, I am not sure which fundamentals you should follow in order to get the best result. So, my view is better to focus on technical analysis on crypto market

For one to make maximum profits in trading, it is absolutely necessary to depend on both Fundamental analysis and Technical Analysis. These two are extremely important.
However, if you're concerned as to which is more important as to make the most of the market, then I think Fundamental analysis is more important.
One can not rely too much on past events to predict the move of the market due to the extremely volatile nature of the market. However, news have always affected the move of the market and making predictions based on this can give one profits

If you have been trading crypto for a long time, you will definitely agree that fundamentals and technical analysis are very important
to be able to predict prices in the market. But in my opinion technical analysis is much more important than fundamental analysis, because
based on my experience trading analysis technical is more accurate in predicting prices. Although there is no guarantee that 100% predictions
using technical analysis are correct. So still be careful when trading crypto, therefore it is very important to use the stop-loss feature,
if it is the result of technical analysis not accurate.

For bitcoin particularly I use TA sometimes, because the coin is old enough and has enough volume to do that but for ANYthing else, I would rather use FA , because most of them are new and in cryptocurrency, some times a coin moves 100% up or 100% down with which TA techniques you wanna explain that?!

In the case of trading it is not possible to do anything without basic knowledge just as it is not possible to do anything without technical analysis it will be very difficult to survive in the market technical analysis is the most effective. Is investing heavily in technical equipment starting with the index and ending with the drawing lines of the chart which helps us determine the trend. The advantage of technical analysis is a very descriptive presentation of the market that facilitates an understanding of the current market situation.

Both are important and have a good use in the market, but I prioritized using Technical Analysis because I see it much profitable for me.

This helped me a lot about the timing and patience, this also made me understand that there are a lot of possibilities that might happen in a short period of time.

It can improve your decision making to prevent bad timings, it will help you to have much clearer and certain perception towards the movement in the market. Most of the common mistakes of the newbies are decision making, that's why they aren't really making profits and instead losing their assets.

I dont think we should divide the altcoins like that. Both FA and TA are important but what I have felt to be most important is that if you are going for a long term hold and sell your entry and exit points are, thus FA is what is needed. If you are day trading you need a lot more of TA and it is risky.

There are inorganic pumps done by groups of cryptocurrency shills in a coordinated manner. You cannot explain or predict when this is going to happen unless you are one of them. The point is that doing TA on such a coin you will make a wrong prediction.

Rather if you hold such a coin already, dump it when this happens.

For me, both analysis can be very much helpful in achieving our goals in the crypto market. The more knowledge you will have, the higher chances of creating good profits in the market. But i also believe that there is more than these two. Discipline is what we also need the most particularly in trading. Technical and fundamental analysis won't end up having good results if we traders do not have discipline and don't have patience in whatever uncontrolled situations that may come in the market.

In terms of market movement, I think it is more inclined towards fundamental analysis, the more I come here I think it is easier for users to catch and be influenced by events, news and several other things to make market movements. But it doesn't hurt to have both, because TA is very influential for the mindset of users facing the volatile market of cryptocurrency.

I disagree, if your TA is failing constantly that is not a sign that FA is the way to go what you need to do is to improve your TA.

FA is not really that effective in this market when 95% of the projects in this market are scams or are lead by developers that are only thinking about making money for themselves and for the most part the coins in which FA could be effective like bitcoin and ethereum there is no need to make any kind of analysis because anyone that has been in this market for some time already know that those coins are the best in the market.