Just saw that BTC dropped another 2.5%, with a trading volume of 497.64M. This is when you need to understand how to read the market even more. Many people enter trades but don't know how to analyze virtual currencies, which is actually the biggest problem.

I think a reliable trader must understand both fundamental and technical analysis. But fundamental analysis only tells you what to buy—BTC, ETH, or XRP. What truly determines whether you make money or not is whether technical analysis can tell you when to buy and when to sell. That’s the core.

Technical analysis is actually about predicting the future through historical price trends. It sounds simple, but there’s a lot of depth. The good news is, this method is used in stocks, forex, commodities, and futures, and it’s fully applicable to cryptocurrencies too. If you understand how to analyze traditional markets, it’s basically the same as mastering how to read the crypto market.

First, learn to read candlesticks. Each candle contains four pieces of information: the highest price, the lowest price, the opening price, and the closing price. If the opening price is lower than the closing price, it’s a bullish candle (green); if the opposite, it’s a bearish candle (red). The thin lines above and below are called shadows, representing the price range during that period. This is the foundation of all technical analysis and must be mastered.

When analyzing the market, first determine the time frame. 1-minute, 5-minute, 1-hour, daily—choose based on your trading style. Then observe the candlestick patterns—doji, engulfing, head and shoulders, double bottom, these have specific meanings. Next, identify the trend—upward, downward, or sideways. Support and resistance levels should also be identified, as they determine buy and sell points.

Volume is very important. When prices rise with high volume, it indicates strong buying pressure. When prices fall with high volume, it shows sellers are dumping. Changes in volume can verify whether candlestick signals are genuine.

Technical indicators are tools used to measure the strength of bulls and bears. Here are the ones I use most:

Moving Averages (MA) are fundamental. If the price is above the MA and close to it, it’s a buy signal; if below, it’s a sell signal. If the price deviates too far, it will revert. EMA is more sensitive to new trends. I usually look at combinations like EMA7, EMA30, and EMA120.

Bollinger Bands help identify overbought and oversold conditions. When the price approaches the upper band, the market is overbought and may decline; near the lower band, oversold and may rise. The middle band continues the previous trend.

RSI is also used to identify overbought and oversold levels. Above 70 is overbought, below 30 is oversold. If RSI diverges from the price (moving in opposite directions), the trend may reverse. This is a very key signal.

KDJ, similar to Bollinger Bands and RSI, has three lines. When K exceeds 80 and crosses below D, it’s a bearish signal; when K drops below 20 and crosses above D, it’s bullish.

MACD is used to find turning points. When the DIF crosses above DEA, it’s a golden cross (buy signal); when it crosses below, it’s a death cross (sell signal). The MACD histogram being positive indicates an upward trend, negative indicates downward. Divergence between MACD and price also warns of trend reversals.

Market analysis requires tools. TradingView is my most used platform—clear charts, full indicators, easy drawing tools. CoinGlass provides various data metrics, while CoinMarketCap and CoinGecko help check market cap, volume, and fear/greed index.

The fear and greed index is also worth watching. 0 indicates extreme fear, 100 extreme greed, 50 neutral. It reflects market sentiment and can sometimes give you a different perspective.

Reading the crypto market, in essence, is about finding patterns. Master candlesticks, indicators, volume, and practice repeatedly—drawing charts, identifying buy and sell points, then verifying. It’s a long-term process. Mistakes will happen, but persistence will improve accuracy.

A suggestion: before each trade, clearly define your risk-to-reward ratio, set mental stop-loss points, and don’t let emotions drive decisions. Regularly review your trading records, analyze what worked and what didn’t. Technical analysis isn’t foolproof; unexpected news can disrupt plans, so don’t rely solely on one indicator. Multiple indicators confirming each other are more reliable.

Currently, BTC is at $78.42K. To predict the next move, you need to analyze the market with these methods. Reading the crypto market isn’t hard or easy—it’s about systematic learning and repeated practice.