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If you dream to be a good cryptocurrency trader, you need some most essential technical skills to analyze the market situations based on historical data and trading volumes on different trading platforms. If you are a beginner in cryptocurrency trading, do not worry, these articles attempt to demonstrate essential techniques to perform technical analysis. Technical Analysis It is a process to study cryptocurrency market conditions based on historical data and trading volumes by applying different analytical tools. Technical Analysis is a practical approach to help traders to make further trading strategies because it is responsible to change market psychology. It does make the sense because the majority of traders follow the previous trends and chart patterns to make further moves. Key terms to understand 1. Trends and trend lines Bullish Trend: It is also known as an uptrend. In a bullish trend, the price of cryptocurrency is going up. Sideways trend: In this sideways trend, the price of assets neither falls nor increases. It just follows a horizontal path. Bearish Trend: It is also known as a downtrend. In a bearish trend, the price of cryptocurrency is going down. Trend Line It is an abounding line to show price movements from low to high. Have a look at the figure. 2. Support and resistance It is extremely important to understand these two terms:- Support: It is a lower level at which the bearish trend is expected to be paused and the price rebounds to that mark. Resistance: It is the highest level at which a bullish trend is expected to be paused and price reverts to that mark. 3. Moving Averages Traders analyze the market momentum by locating the moving average. It helps to identify support and resistance levels for some specific time frame. How to read Candle Sticks charts? Every candlestick in a trading chart consists of opening and closing prices. Bullish vs Bearish Bullish Market: In this type of market, buyers compete with each other to grab orders by setting the higher price mark. You can see bullish candles going up. Bearish Market: In this type of market, sellers compete with each other to grab orders by setting the lower price mark. You can see bearish candles going down. Volatility Check Generally, cryptocurrency markets are volatile in nature. Have a look at following diagram. Overbought and Oversold Overbought:-It is the state of the market when cryptocurrency is massively bought and it will be the best time for a trader to sell his asset. Oversold:-In this state of the market, sellers sell their assets at the cheapest rate and it will be the perfect time for a buyer to purchase cryptocurrency at the cheapest rate. Trading volume and price connection Keep it in your mind, the bigger the trading volume, the better will be price trend for cryptocurrency. Have a look at the following chart. Conclusion:- In essence, Technical Analysis is done according to already available data. Sometimes, it may fail to predict market momentum correctly and in that condition, beginners could lose important opportunities. So it is better to perform according to situations. Thank You😊!