In recent years, cryptocurrency has become widely accepted as a global trading legal tender. The development has led to the emergence of a new billionaire class, thanks to the advent of blockchain technology.
As crypto trading continues to gain popularity and acceptance, the global economy is equally shifting towards online currency, and the casino and gaming industry isn’t falling behind.
The trend has led to the emergence and development of crypto currency casinos, which are convenient online arenas for gaming, lotteries, and betting. However, just like gamers try to read the game patterns in traditional casinos, it is advisable to read and study crypto charts to increase your chances of winning big in a money game.
The Art of Reading and Decoding Crypto Charts
Mastering the art of reading and predicting crypto charts is a vital skill in online casino betting. But the technicalities and the intimidating jargon included in the chart analysis can put off a gamer. This article has broken down the details of crypto chart reading to easily digestible material for all looking to make sense of it.
The Dow Theory
The Dow theory is the most widely used crypto chart reading formula. The theory is hinged on the fact that the crypto market follows a defined trend until an external force brings in some turbulence. The Dow theory is anchored on the following six tenets.
1. Market Movements
The primary movement in a crypto chart is indicative of a major pattern, which normally lasts a minimum of a year to several years. The trend could be bullish or a bear.
There are also short-term reactions, called medium and short swings. Medium swings vary between 33% and 60% of the primary crypto price change and can last for a few days, while the short-term swings occur for a few hours.
2. Phases of Market Trends
The theory proposes that the crypto market experiences three specific phases as outlined below:
Wise and experienced traders use their perceptions to judge the market trend. However, the discerning group is too small to affect the crypto market prices, so this trend is not a big deal.
The trend refers to a point at which the actions of the experienced crypto traders generate an effect on the market prices. It is the point at which prices grow exponentially due to price speculations.
At this point, the market finally obeys the speculated direction and finally goes back to the point of accumulation.
3. Global News and the Market
Fears and hopes of traders have a significant influence on the crypto market value. The whole market reacts to emergent cryptocurrency news, such as the release of new coins or projects.
4. Market Averages
According to the Dow theory, market averages tend to confirm each other. If asset Y is linked to asset X, a fall in Y’s value will lead to a fall in X. Wise investors should be on the lookout for this trend as it is a good indicator of an impending trend change.
5. Trading Volume Confirms Trend
A bull market will lead to an increase in trading volumes, while a bear market will lead to decreased trading activities. The rise in trading volumes results from an increase in crypto price and vice versa.
6. Trends Are Hard to Reverse and Predict
Trends are hardly reversible and continue despite the minor changes along the way. Reversal is also hard to predict until it is evident on the crypto chart.
Online crypto betting is rewarding if you read the crypto charts with the seriousness they deserve. Minor changes in the general trend can have a tremendous effect on your prospects. If the prices are favorable, it is wise to take advantage and do your best to reap big.