All these fabulous technical analysis tools & patterns may help you understand the historical movements of a cryptocurrency’s price & may give a higher accuracy in predicting future price actions. Ok, don’t rush. Unfortunately, you will not make that much money by just implementing some technical analysis in your investment strategy, but at least, it may indicate these sweets resistance levels, so as to enter the market at the right moment and not buy the top.
You have heard about this, but let me repeat it once more, cryptocurrency market is too young to have a well-developed price history, therefore all these tools and patterns cannot apply 100% to the cryptocurrency market. In the case of Bitcoin and Altcoins there are just too many factors that come into play, including speculation, pump & dump schemes, imminent regulations on the table, upcoming technological upgrades, and so on.
Therefore, all these trading bots / mere machine learning models that are based only on historical data and technical analysis tools will not save the day. Yet, an ML algorithm that incorporates at least historical data and market sentiment, plus taking into consideration the correlation between the cryptocurrencies & the strong influence of Bitcoin over Altcoins, would make more sense.
