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Crypto Chart Analysis – What Factors Are Worth Looking At?

To anyone with a pulse, it should be obvious what’s going on in the crypto markets. You see headline news stories screaming “Bitcoin Crashes!” almost daily. It’s hard to know who to trust when everyone has such strong feelings about. In this post, I will discuss how to analyze cryptocurrencies charts.

Crypto chart Crypto analysis

One mistake that a lot of novice crypto traders make is they let emotion take over. This can stop them from making profitable trades. I'm going to focus purely on the statistical factors you need to evaluate before entering a trade, so let's get started...

We’ll be covering factors like time frames, market cap, Relative Strength Index (RSI) and much more.

Time frames:

Different crypto charts show different information. For example, if you want to open and close your position in a single day, you will look at a short-term chart like the 15-minute or hourly chart. If you hold crypto long-term, you will look at long-term charts like the 4-hour, daily, or weekly chart.

Market Cap:

The cryptocurrency market cap is an interesting concept that is used in several different ways. Some people look at it to see how the market has developed in a given time period, and others use it as a way to gauge the health of a specific coin or token.

Japanese Candle Stick:

A Japanese Candlestick contains useful information for crypto traders. A candle is coloured red when the closing price is lower than the opening price. This means the price of the asset declines (Bearish pattern). In contrast, a green candle shows that the closing price is greater than the opening price. This indicates that the asset’s price has risen (bullish pattern).

These candle sticks could tell you about how the market would act.

Relative Strength Index (RSI):

The Relative Strength Index (RSI) is an essential tool for traders and analysts to determine overbought and oversold conditions and get a sense of when it is the right time to buy or sell.

When you’re looking at a coin’s RSI graph, you can tell if it is overbought/overvalued by checking when the RSI approaches 70. Conversely, if the RSI dips below 30, then it is considered to be undervalued.

You can set timeframe values for the RSI. Normally, RSI-14 is used while according to the experts RSI-2 to RSI-6 gives the best result.


MACD is short for Moving Average Convergence Divergence and it’s a trend following momentum indicator. It works by applying a smoothing function on the price using exponential moving averages (ema).

Then the difference between the two moving averages is plotted as a histogram on the price chart, which tends to lead the price where it’s headed next.

Interestingly, MACD can be used to trade all different kinds of securities such as forex, stocks, futures and commodities as well.

MACD has become one of the most popular trend-detecting indicators in use today.

There are more indicators in the crypto chart that predicts the market of the coin. For example, Support and Resistance.

We’ll discuss about all these indicators and factors in the next article.

Moreover, you can embrace these practices to better grasp the crypto knowledge:

  • Join Online Community of Crypto Enthusiasts
  • Read News about crypto coins daily
  • Analyse the Charts on your own
  • Take smaller risks
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Disclaimer: Information found on WWCrypto is those of writers quoted. It does not represent the opinions of WWCrypto on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.