I've noticed that many newcomers in crypto don't understand how to properly read trends. And this is critically important because the cryptocurrency market lives by trends. When it catches them, it usually continues moving in one direction, and that’s the whole point.

First, forget about minute charts. Always look at higher timeframes — daily and weekly charts. Yes, there may be noise and pullbacks on lower timeframes, but in the end, everything will still go where the higher timeframe is heading. It’s like looking at the forest, not just individual trees.

When a bullish trend is active, everything is quite clear: the price creates consecutively higher highs and higher lows. This is a pattern that doesn’t lie. If this pattern is broken — the price breaks below the previous high — it means the bullish trend is breaking down. I’ve seen this many times, and each time it’s a signal to reevaluate your position.

Now, where to enter a trade? Nothing grows in a straight line. On lower timeframes, there will be pullbacks; on higher timeframes, consolidation. I often see the price drop 30-40% on a lower timeframe, but on the daily chart, it looks like a normal pullback within an uptrend. When the price falls to a key zone — the previous higher low — that’s where you can look for an entry. The target will be new highs.

Everything changes when a bullish trend shifts into a bearish one. The picture simply inverts: the price begins forming lower highs and lower lows. This is a sign of a trend reversal. If you short the market in a bearish trend, use the same logic: wait for a bounce to the lower high zone on a lower timeframe and look for a trigger to short. The targets will be new lows.

The most dangerous thing is not noticing the trend reversal. People lose money exactly here. If everyone was bearish, but the trend turned bullish, they keep shorting. If everyone was optimistic, but the trend changed, they keep buying on dips. This is a psychological trap.

Identifying a reversal is easy: use the same strategy as for trend identification. When the price breaks below a higher low in an uptrend — that’s the first signal of a change. When the price breaks above a lower high in a downtrend — that’s a sign that the bearish trend may be reversing.

Some take profits when the trend breaks, others open opposite positions. It depends on your trading style. The main thing is not to ignore the signals.

The whole scheme is simple: stay long when the bullish trend is confirmed. Stay short when it’s bearish. Change your perspective when the market changes. This is the only way to survive and trade profitably. Everything else is emotions and noise.