Apr 21, 2025: Our weekly Institutional Insights explores the latest market developments — market performance, industry news, exchange-traded fund (ETF) flows, trending topics, upcoming events and token unlocks — to help you supercharge your crypto trading.

 explores the latest market developments — market performance, industry news, exchange-traded fund (ETF) flows, trending topics, upcoming events and token unlocks — to help you supercharge your crypto trading.

Weekly highlight — Trump wants to fire Powell? 

US president Donald Trump is actively considering firing Federal Reserve Chairman Jerome Powell, following Trump's public criticism of Powell for not moving quickly enough to reduce interest rates. National Economic Council Director Kevin Hassett confirmed that the administration is examining this option, suggesting that Powell's actions have politically favored Democrats. Hassett argued that the Federal Reserve's decision to raise interest rates shortly after Trump took office was intended to undermine the economic impact of the tax cuts implemented during his administration, which were deemed inflationary. He further criticized the Fed for not addressing inflation concerns stemming from federal spending under President Biden, implying a lack of accountability.

During a recent press conference, Trump conveyed his dissatisfaction with Powell, asserting that if he wanted to remove him, it could happen "real fast." While he did not explicitly state his intention to dismiss Powell, his remarks highlighted the growing tensions between the White House and the Federal Reserve regarding monetary policy. Hassett defended Trump's frustrations, advocating for a focus on economic policy rather than interpersonal conflicts. This situation underscores the complex dynamics between the executive branch and the central bank, as Trump navigates economic challenges leading up to the next election.

Weekly crypto highlight — XRP ETF coming

HashKey Capital has officially launched the HashKey XRP Tracker Fund, marking the first investment fund in Asia designed specifically to track the performance of XRP, the digital asset integral to Ripple's global payment ecosystem. This fund is aimed at professional investors and offers a unique opportunity to gain exposure to XRP without the complexities of direct asset management. Investors can subscribe through cash and in-kind options, with the fund providing monthly liquidity.

Ripple, as an early backer of the fund, is looking to enhance its strategic partnership with HashKey Capital, which already manages Hong Kong–listed spot ETFs for Bitcoin and Ethereum. This collaboration not only solidifies Ripple's presence in the Asian market, but also opens avenues for future financial products, such as the potential tokenization of a money market fund on the XRP Ledger. Fiona Murray, Ripple's Managing Director for the Asia-Pacific region, highlighted that this partnership is part of a broader strategy to introduce more regulated cryptocurrency products for institutional investors in the region, aiming to foster a more robust crypto landscape in Asia.

Advanced

21 Apr 2025 weekly newsletter.png

Weekly Institutional Insights: Trump’s desire to fire Powell might induce volatility; XRP ETF coming

Hong Kong's Securities and Futures Commission (SFC) has approved a new Ethereum ETF with staking capabilities, allowing institutional investors to earn staking rewards.

Daily top performer — Pyth Network (PYTH)

The S&P 500 dropped 1.5% to 5,282.70 this week, down 5.9% in April and 10% year-to-date, led by tech losses. Real estate and energy outperformed, while political pressure on Fed Chair Powell and inflation concerns weighed on sentiment. Gold dipped 0.6% to $3,319 after a record high, as Powell’s stagflation warning tempered its rally. Despite the pullback, the uptrend remains intact. The Coindesk Indices, which tracks the broader crypto market, are up by 0.77%, with Bitcoin and Ether rising 0.64% and 0.72%, respectively, over the past 24 hours. Trade these markets and more with up to 500x leverage on Bybit MT5 using this 

Today's top performer is PYTH, up 10.1%, following the launch of Pyth Entropy for secure on-chain random number generation by Soneium.

Pyth Network (PYTH),  is a blockchain oracle system that delivers real-time crypto price data to blockchains, enabling smart contracts to react to market changes. Soneium 

 Pyth Entropy, a tool for securely generating random numbers on-chain. Two apps, HandsNFT AI and 2p2e, are already utilizing Pyth Entropy to create unpredictable and engaging experiences.

Check out the latest prices, charts, and data of 

Hong Kong's Securities and Futures Commission (SFC) has approved a new Ethereum ETF with staking capabilities, allowing institutional investors to earn staking rewards. This approval follows recent changes to local laws, with China Asset Management (ChinaAMC) partnering with OSL Digital Securities to launch the ETF by May 15. The ETF will offer exposure to Ethereum staking, transforming it from a passive investment into an active participant in the Ethereum network. The staking process is powered by Kiln, with OSL providing custody and insurance services. The rewards will contribute to the ETF's net asset value, benefiting shareholders.

Yesterday, Bitcoin spot ETFs saw $25.9M in inflows, all from non-GBTC funds, while GBTC recorded no flow.

" and a points campaign called Drops, where users can earn points—potentially leading to an airdrop—by engaging with Linera content on X. To join, sign up on 

, complete tasks like joining Discord and interacting on X, then enter the campaign. Keep engaging to earn more points, but avoid spamming.

Beginner

1.png

Hong Kong approves Ethereum ETF with staking rewards, boosting institutional participation

Our weekly crypto derivatives analytics report delves into macro events; the current state of crypto and trading signals from spot trading volume; and futures, options and perpetual contracts.

US president Donald Trump’s tariff policies are influencing both crypto and US equities. Last week, BTC and the S&P 500 rallied due to a 90-day pause in reciprocal tariffs (excluding China). Equities are slightly below their April 9 highs, while BTC is holding above $83K. Its implied volatility term structure has normalized, and the volatility skew has improved from last week’s bias toward out-of-the-money puts, though it hasn't fully shifted toward calls.

Please check out the report’s highlights.

Tariff pause briefly brings back trading volume

Since our last report, open interest surged on Apr 9, 2025, as crypto spot prices rose after President Trump’s temporary tariff pause, accompanied by a nearly $10B increase in trade volumes. However, trade volumes have since returned to mid-March levels, and open interest has declined from the April 9 highs. The initial price spike indicates the tariff pause surprised the markets, but the subsequent pullback reflects concerns over remaining tariffs.

After being inverted for much of April due to trade policy shocks and macro headwinds, BTC’s term structure has disinverted, with front-end volatility dropping significantly this week. Call and put volumes have been balanced, with calls slightly exceeding puts most days. Apr 9, 2025, reflected mixed market sentiment, as both call and put volumes rose, but puts were higher overall. Open interest remains greater in calls, and has increased slightly since last week, reaching its highest level for the month (more than double from the beginning of April).

Despite a rally on Apr 9, 2025 that brought ETH close to $1.7K, traders sought downside protection, leading to higher volumes in put contracts as compared to calls. Since then, ETHUSDT options volumes have declined, but open interest remains strongly weighted toward calls with later expirations, which have increased since last week. After being inverted for much of April, ETH’s term structure of volatility has flattened, with volatility compressing around the 70% mark across tenors.

block-scholes-x-bybit-report.jpeg

Bybit X Block Scholes crypto derivatives analytics report (Apr 16, 2025): Bitcoin put bias has moderated, but not yet shifted to calls

KiloEx (KILO) is a user-friendly DEX for perpetuals trading, offering high leverage, rewards, LSTfi integration and a robust multi-chain ecosystem.

 trading is one of the most lucrative areas for cryptocurrency enthusiasts if you know how to navigate the sometimes complex world of these contracts. Unlike standard futures, perpetual futures contracts have no expiration date, allowing traders to hold onto their positions as long as they prefer. You only exit a crypto perpetual (or “perp”) contract when you feel it’s the best time to execute your long or short trade. The lack of an expiration period makes these contracts attractive for traders.

Unfortunately, many crypto perpetual contract trading platforms are far from user-friendly. It seems like many perpetual crypto exchanges assume that only professional traders dabble in these contracts, and along with that assumption goes a second one — that these pros can navigate even the most complex user interfaces. As a result, finding a user-friendly perps platform is a challenge in the world of crypto trading.

 (DEX) that aims to change the status quo by providing a user-friendly environment for traders. Its platform also offers high leverage ratios, integration into the wider liquid staking token finance (LSTfi) ecosystem and generous reward programs for referrers and affiliates.

Thanks to its numerous benefits, this DEX caters to the needs of traders at all levels of expertise who are interested in crypto perpetuals. Operational since mid-2023, KiloEx launched its native token, KILO, in March 2025 to further enhance its platform's reward, staking and governance mechanisms.

 (BNB) that specializes in crypto perpetual futures trading.

 The platform prides itself on offering a user-friendly interface, high 

 ratios of up to 100x, multi-token vaults with generous APYs and a number of reward programs for referrers and affiliates.

Co-founded by Joey Ni (CEO) and Charles Gong (COO), KiloEx was originally launched on BNB Chain's mainnet in June 2023. As of mid-April 2025, the platform has additionally expanded its service coverage to five 

 (B2). This coverage allows KiloEx to access the ecosystems of three leading blockchain platforms — 

Manta, Base and Taiko are Ethereum-focused Layer 2 solutions, while opBNB is an efficient and low-cost optimistic rollup for the BNB Chain, while B

 is a platform linked to Bitcoin that acts as a major Bitcoin DeFi (BTCFi) enabler.

Because it’s a BNB-native platform, KiloEx's industry footprint is most notable within this blockchain's broader ecosystem. In fact, as Apr 17, 2025, KiloEx is the top DEX on the opBNB network by 

Using Layer 2 chains allows KiloEx to offer its users fast and low-cost transactions, which isn't always possible on a typical Layer 1 network. It's true that BNB Chain, the primary Layer 1 used by KiloEx, generally has much lower gas fees than Ethereum, the industry's leading 

 chain that’s notorious for its exorbitant costs. However, KiloEx's partner Layer 2 networks help drive costs and transaction times even lower. BNB Chain's current average gas fee is slightly over $0.10, while the opBNB Layer 2 rollup's comparable fee is only about $0.005.

In 2024, the platform introduced one of its most innovative features — the 

, which allows liquidity providers to stake multiple assets to earn high yields. That same year, KiloEx significantly expanded its partnership network, becoming an active player in the LSTFi ecosystem. LSTFi is a new stream within the DeFi industry that allows you to use 

 (LSTs) on various protocols for additional yield.

Having solidified its market presence in 2024, the project launched its native token, KILO, in March 2025. However, in mid-April 2025, KiloEx 

 and halted trading on April 15 as a risk management measure, pending investigation of the damage.

The Hybrid Vault is among the most innovative features offered by KiloEx. Essentially, it acts similarly to liquidity pools on other exchanges. Liquidity providers can contribute their crypto funds to the vault to support trading activity on the DEX and earn interest on their contributions, based on the fees earned by the protocol.

You can contribute a mix of coins to a KiloEx vault. Supported assets include 

Depending upon trading activity and the mix of coins contributed, you can earn APYs as high as 30%, making KiloEx one of the most lucrative choices for liquidity providers in this niche.

KiloEx uses a health factor calculation for this type of vault to keep your funds and the entire ecosystem safe. Based on the health factor score of your contribution to the vault, your funds could be liquidated if their value drops dangerously low.

Discounts are also offered for fixed-term deposits for established assets, such as USDT and USDC. Withdrawals for the fixed deposits are processed upon maturity, while all other withdrawals are processed within one to three "epochs," with each epoch on the platform lasting about three days. Thus, depending upon your contributed funds, you’ll wait anywhere from three to nine days to receive your crypto back.

The KiloEx platform also runs a generous referral program under which you can earn rewards for referring your friends to the platform. The amount you earn depends upon the trading volumes generated by the people whom you’ve referred. Additionally, your referees to the DEX can also benefit from fee rebates, again depending upon the volume of trade they generate.

There’s a tiered system, comprising nine levels, based on which you and your friends earn commissions and rebates. Under this system, even those referred traders whose monthly volume is at the lowest level (below $5,000) can still benefit from 5% rebates, while you also earn a 10% commission.

The table below shows the structure of this referral system with percentages for commission and rebates based on monthly trading volumes.

KiloEx offers an affiliate program for key opinion leaders (KOLs) with a certain level of social media following and influence in the crypto market. KOLs may apply to join the program by filling out an application, which is then considered by the project team within 48 hours.

To qualify for affiliate status, a KOL must have: 

Approved affiliates are provided a link to the platform, and are encouraged to invite their followers to trade on the KiloEx. If they invite at least five followers who trade at sufficient levels, the affiliates can start earning their commission. KOLs can earn up to 55% commission, depending upon the referred followers' trading activity.

KiloEx’s native utility token, KILO, is a 

 asset launched on BNB Chain. It’s used on the platform for governance, fee discounts on trades, rewards via 

, liquidity provision incentives and staking.

KILO is a supply-capped asset, with a maximum and total supply of 1 billion. The token’s supply allocation shares are shown in the chart below.

xKILO is an escrowed version of the KILO token. You can convert KILO to xKILO at a fixed rate of 1:1. The primary utility of xKILO is to provide boosted liquidity provision, which makes it possible to receive staking rewards. By locking xKILO on the platform, you can access special discounts and other benefits reserved for VIP-level users. Holding xKILO also grants you governance power to vote and influence the platform's future direction.

Unlike KILO, xKILO is nontransferable and isn’t tradable on the secondary market. The only ways to obtain xKILO are either to buy it with KILO or receive it via airdrops.

Platform users can earn points to qualify for KILO airdrops. Typically, you accumulate points by trading, depositing funds, referring others to the DEX, checking in to the platform and completing other specified eligible activities.

The project’s initial airdrop, Genesis Season, had an eligibility snapshot taken back in July 2024. Under the currently running airdrop campaign, Pioneer Season, users can earn points to receive KILO tokens for 180 days past the token generation event (TGE) in late March 2025 (i.e., until late September 2025).

Additionally, you can earn KILO tokens on Bybit simply by participating in the 

 event and holding BNB in your account. Every day at various random times, Bybit will take snapshots of your BNB holdings in your Funding and Unified Trading Accounts to calculate the number of KILO tokens you’re eligible for. The campaign will run through Apr 25, 2025, 11:59PM UTC, and you’ll have your share of KILO airdropped seven days after this date.

 market as a swap pair with USDT. If you don't have a Bybit account, you can easily 

, and access opportunities across hundreds of trading pairs and crypto products on the exchange's Spot and Derivatives markets.

As of Apr 17, 2025, the KILO token is trading at $0.039, which is 76.2% lower than its ATH of $0.1648 on Mar 27, 2025, and 17.3% higher than its ATL of $0.03344 on Apr 12, 2025.

Long-term price forecasts for KILO are mostly bullish. CoinCodex 

 at $0.0387 in 2027 and then rise to $0.135 in 2030 while PricePredictions 

When it comes to perpetuals trading, both traditional 

 (CEXs) and DEXs have often struggled to offer an intuitive trading experience. In contrast, KiloEx has made user-friendliness a cornerstone of its operations. With KiloEx, you can enjoy a streamlined trading process, access market trends info for thorough research, get an overview of the cryptocurrency market and conduct other activities via an interface that’s designed for anyone, irrespective of their familiarity with decentralized trading.

The platform also boasts a diverse range of other benefits not easily found in the world of perpetuals-based cryptocurrency trading — generous leveraged trading options, trading fee discounts, lightning-fast trades, low trading fees and an innovative Hybrid Vault system. Many of these benefits are thanks to KiloEx's collaboration with several Layer 2 decentralized platforms, which provide the technical infrastructure to enable low costs and fast order processing.

If you’re a crypto perpetuals enthusiast, KiloEx is definitely a platform to peruse.

Intermediate

KiloEx.png

KiloEx (KILO): More than a DEX — a rewarding ecosystem

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?

Compete for 2,500 USDT Every Week

Earn Points by Completing Tasks

Event Rules

Register now and get 10 points

Write/Reply Comments (0/5)

Publish an Article (0/5)

Share an Article on Social Media (0/5)

Like an Article (0/5)

Read an Article (0/5)

Weekly Leaderboard