
Crypto Trading Technical Analysis For Intermediate Traders
If you’ve already dipped your toes into crypto and learned the basics, congrats, you’re ahead of the crowd. But now comes the exciting part: leveling up. In this guide, we won’t talk about following the hype or looking at the charts. You’ll learn how pro traders make sense of charts, turn patterns into profits, and make data-based decisions. Let’s explore what moves this market and how you can trade smarter from today.
Why Technical Analysis Is a Game-Changer in Crypto
Crypto markets are emotional. Most crypto traders act like they’re trying to win a lottery and jump into trades based on hype, gut feel, and some influencer’s latest hot take. The constant noise, 24/7 volatility, and the fear of missing out exist to pull money from the impatient and hand it to the prepared.
If you’re at the intermediate level and still chasing that altcoin that will multiply 100x overnight, it’s time to stop the nonsense.
If you know how to read them, price charts are nothing more than human behavior laid bare.
Most people don’t want to accept this because learning takes effort. It’s easier to follow someone on Twitter who promises 10x returns than it is to sit down and study RSI divergence. But success isn’t found in comfort.
Doesn’t matter whether you trade long or short term; technical analysis helps you:
- Identify better entry and exit points
- Catch breakouts before they go mainstream
- Avoid emotional decisions.
Of course, you don’t need to be perfect, but you do need to be prepared and equipped with the right tools.
Chart Patterns That Work
Too many traders memorize chart patterns like students cramming for a test. They learn names (flags, pennants, wedges) without asking why those patterns matter; there’s no need to memorize 50 patterns. Let’s talk about the ones that work:
- Descending Channel: It shows exhaustion of bearish pressure with a controlled decline. Price walks downward, bouncing between falling support and resistance. Volume thins out. Sellers lose steam. Breakouts happen when the last panic seller exits and buyers reclaim control.
- Head and Shoulders: It reflects fading buyer conviction. Three peaks, one higher in the middle. Price climbs, stalls, then fails to reclaim highs. The neckline breaks, and selling pressure takes over.
- Bullish Flag/Pennant: The market pauses in a tight range or sloped channel after a substantial price surge. It’s consolidation, not reversal. Then the uptrend continues.
- Double Bottom: It marks the shift from despair to accumulation. Price hits a low, bounces, tests the same level again, and holds. The second rejection signals strength. If resistance breaks on the way back up, it’s a go.
- Cup and Handle: It shows long-term accumulation, a breakout pause, and a second wave of buying. Over time, a rounded bottom forms, followed by a short pullback (the handle). It’s a continuation when the price breaks above the handle with volume.
Indicators You Should Use
You don’t need to use every indicator under the sun to make the right decisions on online trading platforms. However, before using them, you should understand what they tell you. Then pick the right ones and trust the process.
RSI (Relative Strength Index)
RSI is one of the simplest tools for spotting overbought or oversold conditions. Look for:
- RSI > 70: Overbought (watch for reversals)
- RSI < 30: Oversold (watch for a bounce)
- RSI Divergence: Price goes one way, RSI goes another—potential trend change.
Recent Example: On June 10, 2025, Bitcoin’s RSI dropped to 52 while the price tested $99,200. That suggested the market was cooling, not crashing. Smart traders held their ground.
MACD (Moving Average Convergence Divergence)
You can use MACD crossovers for confirmation:
- Bullish crossover = potential upside
- Bearish crossover = watch out
- Combine it with RSI and volume for more accurate calls.
Bollinger Bands
These bands expand and contract with volatility. If they “squeeze”, a breakout is coming. You should use Bollinger bands with other tools to gain more insight into the direction.
Recent Example: When BTC’s bands squeezed in early June 2025, the breakout sent prices up 8% in 48 hours.
On-Chain Signals
This is where the pros get an edge. On-chain data shows what’s happening behind the price.
- Whale accumulation: Are large holders buying or selling?
- Exchange flows: Are coins moving to wallets (bullish) or exchanges (bearish)?
- Realized cap and dormancy: Helps track market cycles.
Forex market analysis
Use market specific tools at your advantage for forex market analysis.
Think in Probabilities, Not Predictions
If you’re trying to predict what Bitcoin will do tomorrow, you’re already on the wrong track.
A better question is, “If this setup appears, and volume confirms, and RSI aligns, what’s the likelihood this trade works out in my favor?”
You see Bitcoin in a descending channel. RSI is holding steady at 50. Bollinger Bands are tightening. MACD lines are curling toward each other. On-chain data shows stable inflows and positive ETF activity.
What do you do?
Wait for the breakout. Watch volume. Confirm the RSI doesn’t shoot above 70 too fast. And then? You take your shot position sized properly, stop-loss in place, and eyes on your exit.
You will not be right every time. You don’t have to be. But you must avoid catastrophic loss. Preserve your capital. Wait for asymmetric opportunities, where your potential upside far outweighs the risk.
What To Avoid
Even intermediate traders fall into traps:
- Overtrading: Not every dip is a setup. Stick to your criteria.
- Ignoring volume: No volume? No conviction.
- Blindly following influencers: Use them for ideas, not decisions.
- FOMO: The fastest way to lose confidence and money.
One more tip: Keep a trading journal. It’s not exciting, but reviewing your past trades is one of the best ways to improve.
Build Your Edge With Confidence
Crypto is full of noise. Charts, indicators, headlines – all competing for your attention. But you don’t win by reacting in a highly volatile market. When approached seriously, technical analysis is one of the few tools that gives you a fighting chance in this market. It helps you see what others miss. It enables you to wait when everyone else is rushing. Moreover, it helps you act with reason. So keep learning, keep practicing, and remember that smart traders don’t chase the market; they prepare for it.