READING CRYPTO CHARTS
Plain English
Crypto charts work the same as stock charts — candlesticks, volume, moving averages. The difference is crypto trades 24/7/365, so charts never 'gap' at open, and weekend moves can be massive. The same technical patterns apply.
Going deeper
Crypto charts use the same tools as equity charts: candlestick patterns, support/resistance levels, moving averages (MA, EMA), RSI (Relative Strength Index), MACD, Bollinger Bands, and volume analysis. Key differences: Crypto trades 24 hours, 7 days a week, 365 days a year — there are no market hours or daily gaps. This means exponential moving averages (EMAs) are more responsive to the continuous data stream. Popular crypto-specific indicators include the Crypto Fear & Greed Index (0-100 scale), Bitcoin Dominance (BTC's % of total crypto market cap), and on-chain metrics like the NUPL (Net Unrealized Profit/Loss). Funding rates on perpetual futures indicate market sentiment.
Examples
Weekend Volatility
It's Saturday 3 AM. A large country announces crypto restrictions. BTC drops 15% before most US traders even wake up. By Monday open, it has partially recovered. Traditional markets would have waited until open to react — crypto doesn't wait.
Fear & Greed Index
Fear & Greed at 11 (Extreme Fear) in June 2022. BTC is at $17,500. Historical pattern: extreme fear = potential buying opportunity. Six months later, BTC recovers to $28,000. The index doesn't guarantee anything, but it contextualizes crowd sentiment.