Is technical analysis negatively affecting cryptocurrencies?

[MMS2017]

Crypto currencies are good when the market is over all good and if any bad news spread in the market then it also badly effect crypto and if we analyze things technically that would be a better option but still if the market have not potential if you work hard nothing you will get in return.

[Kakmakr]

The problem come in when technical analysis based on traditional asset markets are used on Crypto currency markets. I think Bitcoin being both a currency and a commodity, complicates things a little and this makes traditional technical analysis unreliable. Most of the TA is done by people who are personally invested in the asset and this makes them unbiased. <Projecting only data that will suit their hidden portfolio>   

The people doing this, is just trying to manipulate the market in their favour. 

[cc80aa]

 yes, sometimes market is moveble you cannot expect what happened in the next one hour, minutes, and second you must be prepared to what happened in the next, because crypto currency market is very volability. you cannot trust everytime in technical analysis theory.

[exstasie]

I have to say upfront that I'm no fan of technical analysis, even in traditional asset markets. There are 2 main reasons for this:
1) There is no scientific proof that technical analysis works at all. The only correlation between technical analysis and true market movements is that it is widely believed. And this leads to the next point
2) TA is a self-fulfilling prophecy. If people stopped believing in it, it would stop working right away. If people find new patterns they only start actually working once they get enough traction for other people to believe in them.

There can't be scientific proof. Economics and markets can't be studied using the scientific method because cases can't be isolated and reproduced. There are far too many variables in play.

The best one can do is try to isolate trading setups and reproduce them, and then statistically backtest. My trading improved a lot when I stopped trying to use TA to make predictions. It's useful for signalling when the market has left equilibrium, and therefore when to react and what side of the market to be on.

At cryptocurrencies, however, those fundamental values don't work as there are rarely any. Most companies behind cryptocurrencies either have no product that is close to justifying their volume and value. Some of them (Bitcoin amongst them) do not even want to have one. Therefore they are subject to constant influence by those religiously believing in TA, which makes them an object of pure speculation. The fundamental values are "news", no matter the level of reliance.

I think the fundamentals are simply harder to read. The lack of hard numbers doesn't mean the fundamentals don't exist, but they are abstract and speculative and don't boil down to simple ROI calculations.

I find, in all markets, that the more market depth there is, the more applicable TA is. Really thin, low-volume markets (like small-cap altcoins) can be pushed around easily by news events and speculation about fundamentals.

[Jadyn Arroyo]

I agree that speculation and volatility are problems. Speculation overall seems to be affecting cryptocurrencies if the general goal is to use them as an effective cryptocurrency.

[eaglewhite80]

Well! You do have a lot of points put together I must say. One thing actually is that TA, not just in cryptocurrency, but like you said in other traditional assets have become a norm one way or the other, and people obviously get to believe in any patterns that would possibly work out for them and because of that, they all think in the same direction based on their knowledge, and that is TA, which I do not see as the problem here.
 
It is a market, and when it comes to speculation or technical analysis, there is absolutely nothing we can do about it, as they are all part of the market which is why up till now even stock market is not beyond speculation. What we should just be looking at is that, instead of having just a speculated asset in our hands, real life usage will at least bring some sanity to it, and I do not see TA being the problem here, it is just for traders who are trying to make a living and looking for patterns from the market fluctuations.

[Ucy]

Complex Technical analysis never really worked for me. It is yet to be proven if TA tools work or not.
Some work a little. especially the less complicated patterns but they are never consistent. They help make things clearer which is their obvious advantage.

Better to just stick with simplest patterns that most exchanges provide.

[Herbys]

According to technical analyzes conducted by Chainalysis, “whales” not only do not have a negative impact on the volatility of the crypto market, but, on the contrary, serve as its stabilizing factor.

They believe that only a third of the “whales” are active traders, and basically they go against the general movement and buy assets at lower prices.

And they stabilize the situation in the falls.

[ColemanGentry]

Technical analysis may in some points help crypto but in most cases it is still adding to the speculation and volatality as other forms of news also effect it. Looking into investing into any sort of market it is important to stick to facts rather than rely on analysis or speculations as they aren't accurate. Doing a little research and being cautious with investments goes a long way.

[AdamRay]

In my opinion is yes. Because technical analysis in this market is quite effective. We should say it is a whale psychological analysis. I have some people who specialize in data analysis and make the rules for effective trading very accurately. But it does not last long for 2 weeks so they have to work often to find out the principles of the market.

[Ewinsane]

I doubt it, technical analysis is what bitcoin looks like its doing, something that shows what it is doing can't affect what it is doing.  It is after the fact so it can't be really damaging the before the fact at the same time.

Hence I believe technical analysis not only not damaging cryptocurrencies but it also helps a lot.

There are a lot of times whales do crazy stuff in the crypto world and we see many times when bitcoin should go up but kept under by bigger players and thanks to technical analysis we know that the price is not going down because of a problem but because of the whales.

It also helps us to know when it looks like it is legitimately going down and not manipulated, if you compare what price "suppose to" do and what it is doing sometimes they collide which is the normal one and sometimes they don't and than you know someone is tampering with the price.

[Supercrypt]

A lot of people over the years have ended up condemning TA one way or the other, for some reasons best known to them, but like you said it, Technical analyses are just patterns in the market in which traders look for and no matter what, as long as we get to have institutions in play in most markets, all these patterns will always have a role to play in terms of resistance and support, call it whatever you want to call it.

This however is not what has brought about speculation as that is just something basically on its own, and the only thing that can help out of that is to at least get to see some real life usage which would bring about sustainable demand and less of speculation, but trust mate, speculation is something that will always be part of a market, take it or leave it!

[akram143]

A lot of people over the years have ended up condemning TA one way or the other, for some reasons best known to them, but like you said it, Technical analyses are just patterns in the market in which traders look for and no matter what, as long as we get to have institutions in play in most markets, all these patterns will always have a role to play in terms of resistance and support, call it whatever you want to call it.

This however is not what has brought about speculation as that is just something basically on its own, and the only thing that can help out of that is to at least get to see some real life usage which would bring about sustainable demand and less of speculation, but trust mate, speculation is something that will always be part of a market, take it or leave it!

The analytics of our investment are very important to get better than the normal so many of us need to do that and it will definitely be a good way to achieve something.

[Altf4]

Technical analysis does not negatively affecting cryptocurrency , technical analysis can greatly help and improve the promotions of the cryptocurrency so that it will be successful for its launching and promotions.

[yoseph]

Technical analysis does not negatively affecting cryptocurrency , technical analysis can greatly help and improve the promotions of the cryptocurrency so that it will be successful for its launching and promotions.

Even though I don't believe in technical analysis of anything by these so called experts, there are those who believe and I think depending on what these analysts bring forth, it affects the marker either positively or negatively.

[Oliedric]

In all honesty, no researchers or proper analytics have ever measured volatility precisely. Both the negative or positive speculative reports have olnly affected the market.

[Astaling]

It seems to me too that technical analysis are like a astrology for traders and it effects the market in a negative way as it nothing but chaos in rough times.

[Ethigokath]

Looks like graphical analysis is not doing any good to the market. It's sure that the experts are trying hard but sometimes it may not just work.

[Wigowien]

Too much technical analysis is happening recently as the blockchain and cryptocurrency is all new and engineered processing and the sole purpose of its being is hampered and people are more reluctant than ever to accept crypto as their side currency let alone main currency. As we are too busy finding faults with cryptocurrency we are never too much eager to put it even on the reality to see what is going wrong here; we are so into the negativity regarding crypto that, we do not even consider it. New things must have faults but we should let them shine if they really have the potential they proposed they have.

[hero1111]

Yes, it is affecting because; People believe technical analysis and they listen to analysis and when we can check youtube we will see there are more analysis for cryptocurrencies and people watch them if the analysis was negatively it is not good because investors will not invest to cryptocurrencies and it is bad for all market.