In the Crypto market, there are many analytical methods for trading: technical analysis, on-chain analysis, macro analysis, news,... However, relying on only one analytical method will Can lead to interference conditions such as:
Why is the coin's good news but the price is falling?
Technical analysis is qualified to have waves going up, but why doesn't the price go up?
The amount of BTC withdrawn to the wallet is increasing, the amount of BTC on the floor is getting lower and lower, but why is the price still flat?
These questions will forever be unanswered without logical thinking. Investors need to understand that analytical methods should all be considered together, like pieces of a puzzle. This will help investors have a broader and longer-term view of the market.
Even within each analysis method, investors also need to have logical thinking. For example, technical analysis of Bitcoin requires investors to be able to understand the indicators of the M15-1h time frames, and in each time frame to be able to understand the indicators BB, EMA, RSI, MACD, ADX. ,...
It is important that investors have sufficient knowledge, time and experience in analytical methods. After that, investors need to chain, assemble, and flexibly use the analysis together to make their trading decisions.
Each investor is like a boxer, each move is like an analysis method. How to coordinate tactics smoothly is the unique logical thinking of each investor. That will make a difference for each investor in this fierce financial market.