WHEN IN DOUBT, ZOOM OUT
Even as an inexperienced trader or investor, without extensive knowledge of technical analysis, you can leverage observation and common sense when entering the world of crypto—especially through centralized exchanges like Binance.
Choose three or four tokens and examine their charts. If your first thought is, “They all look very similar,” you’re absolutely correct! Most token charts exhibit similar patterns due to their correlation with Bitcoin (BTC) and its movements.
I often see people in post comments asking questions like: “What about this coin? Will it go up or down?” If you analyze charts on a weekly timeframe, you’ll notice a pattern. Most tokens were on an upward trend starting in early November, peaked, and experienced a significant liquidation drop on December 9th. Afterward, they didn’t resume their uptrend but started sliding down.
What goes up must come down—and vice versa. What was down will eventually go up. Use your common sense (not greed, hype, or hopium) to answer this question: Are the charts showing an upward or downward trend? The answer is evident from every chart. What you see is the current reality. You might hope for a sudden reversal today—perhaps on a 15-minute candle—but the broader trend is what matters.
A very helpful tool is the Fibonacci retracement, where key levels often act as resistance on the way up and as support on the way down. If a support level doesn’t hold, the price is likely to drop to the next level below.
In recent days, many tokens have been searching for support, with some holding at the 0.382 Fibonacci level and many others dipping to 0.5. This behavior is not surprising after a month of exponential growth and reaching a peak.
I’m simply sharing my observations and experiences. Everyone must do their own research and learn from their successes or mistakes. Remember: Your money, your responsibility.
