Is Technical Analysis Prophetic or Preposterous? We Asked 7 Crypto Traders

In fact it's quite bad.For most of October, analysts in the bitcoin market were warning that the death cross was coming - using what's known in the trading business as technical analysis.

Many traders set up their systems to automatically sell out of a position if the price of bitcoin suddenly falls below a certain threshold; the exercise is known as a stop-loss order and roughly translates to, "Get me out, now, before I lose any more money." Once those stop-loss orders get tripped, the price move accelerates, and pretty soon a lot of novices trading bitcoin futures are getting "REKT." That's crypto-speak for when heavily leveraged traders get liquidated due to a margin call.

"It's basically technical analysis on technical analysis."

At BitBull, technical analysis is a key part of our active management, and works well in concert with news analysis to reveal probable movement patterns and downside/upside limits.

Since crypto markets are highly volatile and generally speculation-driven, technical analysis provides key indicators of price movements, especially support and resistance zones.

Technical analysis is what led us to believe that the high reached after Xi Jinpeng spoke was ephemeral and would retrace back to just above $8,000.

Using technical analysis enables us to trade around crypto's volatility, buying low and selling high with confidence.

What I see is that technical analysis actually works better in crypto because you don't have the fundamental analysis that you have in equities and other asset classes.

It's basically technical analysis on technical analysis.

If you look at technical analysis as a tool that a lot of traders are looking at, and everybody's looking at the same indicators, they're seeing the same things and adjusting their trading strategies accordingly.