How to acquire crypto price prediction skills?

There are multiple ways to forecast price changes in cryptocurrencies and other financial instruments. How to spot a reversal? Why do emotions play such an important role on the digital asset market? What are the metrics you should be on the lookout for if you want to predict Bitcoin and altcoin price movements? or should you just listen to your favourite Tik Tok influencer — Pablo anyone?

Let’s dive in:

Avoid ‘catching knives’ — buying the dip when you have no idea of where the bottom is.

• Keep track of support and resistance levels. As a rule these will be psychologically significant numbers that the price has difficulty crossing.
• Each asset has its trading range and phases. The more you monitor a certain asset, the more you get a feel for it.
• Remember that the cryptocurrency market is very emotionally-driven. Price movements are often governed by sentiment — and very often this is priced in before the act (buy the rumour, sell the news..)
• There is no universal method that can let you spot tops and bottoms every time.
• Even seasoned, professional traders make mistakes. To get a feel for the market, you have to study the asset, its history, what made it move up and down — and dip your toe in, play, practice etc.

Nobody knows for sure when trends start or end. Nobody knows for certain if an asset is going to move up, down or sideways. Seasoned traders sure don’t go around catching knives or trade against the market when there is no solid reason to. Careful analysis allows for a much better chance at predicting trends. Significant reversals always follow strong signals, but nobody said these signals were obvious — And so you are welcome to the world of crypto — strap in for the ride!