How to do analysis of chryptocurrency? What to consider?

Before determining the investment position for a cryptocurrency, it is necessary to have solid estimates about it. In order to predict the price and trend direction, analysis is required. In this article, we will try to explain what you should pay attention to in your analysis before making an investment decision, and how you can do the analysis by looking at what.

How to do analysis of chryptocurrency?

While analyzing cryptocurrencies, multiple different factors are examined at the same time. Analysis is not done by simply monitoring the trend or price movements of the cryptocurrency. By making technical and fundamental analysis, everything from the developments on the agenda to the graphics is analyzed.

In this respect, the analysis is multifaceted. Crypto analysis can be done by following both past price movements, volumetric changes and current crypto money news. There are different tools and sites to use for this.

What Should Be Considered in Cryptocurrency Analysis?

Issues to be considered while analyzing cryptocurrencies are supply, demand situation, models of historical graphs of crypto money, trend direction, positive and negative news about it. Analysis should be done by paying attention to these basic issues. By following all these, you can learn how to perform the analysis from the sub-headings.

While doing any cryptocurrency analysis, you should definitely keep an eye on Bitcoin. It is especially useful to follow the current Bitcoin news. Because, as all altcoins are affected by the BTC price, the BTC price is also affected by positive or negative news.

Supply-Demand Relationship in Analysis

When analyzing cryptocurrencies, attention should be paid to the supply and demand balance In this context, first of all, the system between supply and demand should be understood. It should be known that when the supply of an asset increases, the demand decreases and when the demand increases, the supply decreases. In a decrease in supply, the number of an asset or product in the market decreases and the asset or product becomes rare. As is known, assets that become rarer have higher prices.

Based on this logic, it should be known that if the supply of the cryptocurrency decreases, its price will rise and investment should be made based on the price rise as a result of the analysis. If the supply of cryptocurrencies is rising and buying demands are decreasing, At the end of the analysis, it should be stated that the price may decrease.

Current Positive and Negative News in Analysis

Current news must be taken into account when analyzing cryptocurrencies. These news include the comments of market makers and the opinions of analysts. In the news, if a market maker has made negative comments about crypto money, it should be added to the analysis results that the price is likely to decrease. For example, since Elon Musk has recently defined Bitcoin as a very energy-consuming crypto money, a short-term decline has occurred in prices. Other points to be considered in the news should be regulations and lawsuits regarding crypto money. On the other hand, rumors of attacks on exchanges should also be taken into account. For example, the Binance exchange is one of the largest Bitcoin trading exchanges. In the near future, Bitcoin prices were seen to fall after the claim that Binance was carrying out loose KYC transactions. In the first half of the SEC lawsuit, after the XRP Coin developers positively defended, It was seen that the price of XRP Coin, which fell at the beginning of the case, went up. Cryptocurrency prices can change direction depending on whether these agenda news are positive or negative.

Historical Price Charts

When analyzing cryptocurrencies, the graphs should be examined in a historical order. Because although cryptocurrencies are not in sight, When you go deeper, they have habits for themselves. For example, the chart model that a cryptocurrency presented before it ran to record prices in the past, If it has taken the stage once again in the future, it should be given in the results of the analysis that this cryptocurrency can again advance to a record price. Of course, in order to understand this, it is necessary to review the chart models of 1 to 2 years, starting with the most recent graphics of the cryptocurrency. Because it requires a process, the process falls under technical analysis, not fundamental.

Cryptocurrency Trend and Direction Tracking

While analyzing crypto money, following the trend direction of crypto money is as important as other transactions. Bull and bear markets can occur over cryptocurrencies. In these market periods, the so-called false breakouts may occur on the chart, as the bulls make movements to increase the price and the bears to pull the price down. If the fake break occurred over the price of the crypto currency, analysts are informed that the trend before the breakout will continue after the breakout. So if the uptrend exists before the fake breakout, At the end of the analysis, it should be stated that the rise may continue in the short term after the break and investment positions should be considered accordingly.


We see that both external and asset-related factors play a role in cryptocurrency analysis. From the news, everything can change the price value of the cryptocurrency asset, depending on the trend and supply demand situation. Accordingly, our analysis results and estimates may change instantaneously. By paying attention to these details, you can make a correct analysis before investing. A good cryptocurrency investor always invests by doing her own analysis. You should never invest based on advice given by heart or with the minds of others. You don’t know who is advertising for what purpose in the crypto money markets, which is called the peak of speculation.