Hello to my friends who love life and keep smiling despite all kinds of negativity. In this article, I will talk about the "PULL-BACK" that is frequently made in the cryptocurrency markets. I will try to explain it as simply as possible. Let's learn together…
Pull-Back is actually a military term. It is also widely used in technical analysis in the cryptocurrency markets. It starts with a decrease in the acceleration of an upward or downward trend. This situation is created by falling below or exceeding an important technical level. In this case, the price action pulls back to that important technical level again. This situation is also seen as a second chance given to the investor.
A retracement is a pause or fall that occurs in an ongoing uptrend. The term retracement is usually the term for price falls that have a relatively short duration before the uptrend continues.
A temporary reversal in the price of the cryptocurrency. Withdrawal period usually takes two to three. It can be an entry point for traders who want to enter a position when other technical indicators remain bullish.
Pull-backs are considered buying opportunities after a cryptocurrency experiences a massive upward price movement. For example, a cryptocurrency experiences a significant increase following a positive earnings announcement, followed by a pullback while investors with existing positions take profits. Profit is a key sign that the cryptocurrency will continue its uptrend.
Most retracements are based on technical support such as the moving average before the price of a cryptocurrency continues its uptrend. Investors should carefully monitor these support areas. Because the signal of reversal rather than withdrawal may develop. Transaction volume plays a role here.
Pull-backs do not change the underlying underlying narrative that drives the price action on a chart. After a strong rise in the price of a cryptocurrency, it is usually profit-making opportunities.
Both pullbacks and reversals occur at high levels. Withdrawals are temporary, but returns are longer term. How can investors distinguish? Most of the bouncebacks involve some changes in a cryptocurrency base that force the market to reevaluate its value.
It will appear within two to three days and will initially look like a retreat. Therefore, traders use moving averages, trend lines, and trading bands when a retracement continues and there is a risk of entering the return zone.
In finishing…
The only thing the investor needs to do is to analyze the "PULL-BACK" correctly. Because when you don't catch the right cryptocurrency at the beginning of the uptrend, there are buying opportunities.
As I always said, listen to everyone, decide for yourself ...
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