Technical Analysis has always been a core part of the financial markets which made people believe it is the ultimate mode of prediction.
But the crypto-world doesn’t look impressed by the method.
Recently, Brenna Sparks, a well-known internet personality and crypto-enthusiast, took this matter to Twitter by expressing her sceptical view regarding the application of the method in crypto-analysis.
“Technical Analysis is the biggest horsecrap and has been dead since the 80’s.You may as well talk to an astrologer.”
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We agree with her to some extent as cryptocurrencies are known for its volatile markets and here repetitive patterns are rarely observed.
The experts on this matter too believe that this method goes as far as people believe that the patterns will repeat. Financial markets have had success using this method because the entire strategy was designed according to the previous concerns which were obstructing the investor’s viewpoint regarding the stock.
But the same cannot be accurately implemented in the case of cryptocurrencies as they are new to the market. The technology behind it is still not properly understood by the potential investors which make some of their decisions regarding it completely vague.
This prediction method does have a track record of accurate calculations despite the scrutiny it is under in. Since technical analysis is not the sole criteria for determining trends, it shouldn’t be considered as one.
But the problem incurred is that it still stays as a method that people rely on because better methods have not emerged yet. The solution to it has not come up yet even though the issue has existed for a long time now.
Well, the final decision to speculate or invest in cryptocurrency does involve some risk.No method can guarantee one sure shot success despite the extensive claims they make.
The process of such an evaluation of cryptocurrency will always be some sort of guessing game with few sure shot hints thrown at you to complete it.