How to Easily Analyze Crypto Charts for a 100x

After fundamental and tokenomics analysis, the final thing to do is analyze the chart of the crypto projects you are considering investing in.

Whenever I talk about analyzing charts, a couple questions usually come up:

1. Is technical analysis actually real?

2. How should a chart be setup?

3. What are we looking for?

4. How can we do all of this to find a 100x crypto?

Don’t worry! I’m going to give you the easiest way to do all of this from a retail investor’s perspective while explaining the actual benefits to understanding basic chart principles.

1) Why Should We Be Concerned With Charts (Can We Even Trust TA)?

The chart is a beautiful visualization of all the market participants, their movements, and their ideas related to the future value of an investment.

The chart is like the Mona Lisa, and we are trying to be Da Vinci.

Understanding chart analysis only puts you at an even better advantage than everyone else, and when I mention chart analysis, I don’t mean some crazy technical analysis with weird patterns.

My definition of chart analysis simply means that you can look at a chart and understand common themes around what price has done and what it can do in the future. Look at charts from a retail perspective.

Chart analysis provides a couple clear benefits:

1. Market direction analysis

2. Pattern and historical references

3. Educated speculation and indication

These ideas intertwine with fundamentals, tokenomics, and market direction analysis because we want to find optimal times to buy good projects. We are not timing the market! Good projects become overvalued and undervalued every day. If you make it through market direction, fundamentals, and tokenomics analysis and still think a project is good, why not also analyze the chart to understand if price is an indication of future growth or potential downswings?

At no point in this email do I want you to think “oh I need to be a trader” or “I must need to learn some patterns and spend all day watching charts”…..NO! This is the opposite of the mentality that I want you to have.

We are not technical analysis (TA) gurus. What I have found is that the further out on the chart I go, and the simpler I make my analysis, the better off my positions are.

So yes, TA does work….but it probably won’t work in the way you think about TA. I thought about TA in the way you are probably thinking about it for a long long long long long time. The real way to do TA for normal, retail investors is to keep it simple, keep it easy, and keep timeframes longer.

If you want to understand where the total crypto market cap is going. Charts can help.

If you want to understand how releasing liquidity is affecting a crypto project. Charts can help.

If you want to understand which direction a project’s token is headed. Charts can help.

They aren’t 100% accurate, and they aren’t supposed to be. But they can help you to understand crypto cycle over cycle, help formulate investment decisions, and provide guidance on market conditions and possible outcomes.

2) How Can Chart Analysis Be Done Simply With Less Time/Stress?

Okay so chart analysis can help us find the next crypto 100x play, but how do we do the analysis?

There are 3 main steps I take to analyze a chart:

1. Price Action, Patterns, and Timing

2. Risk Levels

3. Ultimate Buy Point

Inside of these 3 broad steps contain tools such as:

• RSI

• MACD

• Fibonacci Retracement

• Fibonacci Extension

• Moving Averages

• Risk Levels

• Trend Lines

Here’s the TLDR of my basic chart strategy:

1. Daily chart: use 21, 50 ,150, and 200 day moving averages

   1. Price should be above 50 and 50 should be above 200

2. Weekly chart: use 10, 30, and 40 week moving averages

   1. Price should be above 30 and 30 should be above 40

3. Look for cup and handle patterns and buy in the handle or breakout above handle (read this post for more info)

4. Cut all losses at about 10% so you never lose more than you can handle

Sounds simple enough, right!

Here’s a video for further explanation because I know you might have more questions. Watch this to basically learn this chart strategy.

So why do I analyze charts like this?

My logic is that I want something I can do:

• Reliably

• Quick

• Stress Free

• Simple

• Repeatable

I want a method that allows me to still have free time. I don’t want to be rich in crypto but also tied to the desk analyzing charts and stressing all day. My goal is to do as little work in crypto as possible in order to satisfy the returns I desire.

From this, I have realized that on a large enough timeframe, simple enough chart analysis tools work wonders.

I tried the fast paced meme coins analysis, I tried NFT flipping, and I tried day trading crypto. They all didn’t work! Not because they’re wrong, but because I’m just a normal guy with a 9-5 and wasn’t as skilled as I needed to be for that type of investing plan.

I had to pull myself out of that game, out of that headspace, and realize my lane in crypto investing.

With that being said, the lane of crypto chart analysis I focus on is simplicity.

The logic is that normal indicators work when you don’t force them.

You don’t force them by zooming out your timeframe and analyzing charts on a long enough timeframe.

You don’t force them by being patient and comfortable; not being a trader.

This is how I think through these charts:

1. Are there any patterns that I can recognize over the history of the chart that can help show what might happen?

2. Is price in an obvious upwards, downwards, or sideways direction?

3. Is the timing of current price action relevant to any previous timing? Such as is the price action in November 2024 similar to price action in November 2023?

4. Is price on any key support and resistance levels?

5. Is price on any key moving averages?

6. Are other cryptos going up as well or is this the only one?

7. Is there a cup and handle breakout forming or how can I limit my risk?

Patterns, price action, and timing is the perfect place to start a chart analysis because it helps you build a thesis of what is happening without any indicators (keep it very simple).

By looking at a chart, your first impression can tell you whether there are any price actions or patterns that seem relevant to the overall story.

Next, I typically move to support and resistance (S&R). There’s three ways you can do S&R:

1. Draw S&R lines

2. Use Fibonacci retracement levels

3. Use moving averages

I draw S&R lines by going out to the furthest (or 2nd furthest) timeframe that has a reasonable amount of candles to see what’s going on. For instance, on the ADA chart, this is the monthly chart. Once I find a chart that is zoomed out enough, I draw support and resistance lines (maybe like 2-3 at max) that seem like strong areas for price. By zooming out this far on the chart timeframe, you can remove the noise of daily price fluctuations and focus on the simple, minimal candles that make the difference.

I also like to use Fibonacci retracements to see what key levels are from the swing high to swing low. Lastly, moving averages are great to see where price could have support and resistance.

I like the below basic moving averages (or you can use Ben Cowan’s Bull Market Support Band):

• 21SMA

• 50SMA

• 150SMA

• 200SMA

The best analysis builds a theory off of the conglomerate of all of these ideas across multiple timeframes while keeping everything very simple.

3) Avoid These Chart Mistakes

1. Thinking that chart analysis is bulletproof or that you won’t be wrong

2. Overanalyzing and wearing yourself out for no reason

3. Not having enough patience and expecting price action to happen immediately 

4. Thinking this is easier than it seems

5. Watching charts everyday (I typically analyze charts like 1-2 hours per week; less is more)

6. Not building a thesis you believe in and have conviction in

7. Not being flexible or admitting when your chart didn’t play out as expected

8. Holding onto a loss more than 10%

9. Not reading and learning more than you already know

There’s so much to unpack with chart analysis that it is impossible to explain it all in this post. I hope the video helped explain more details about how I view charts and their importance in this space.

If you have any questions on chart analysis, feel free to drop me a DM on X (Twitter) here.

Don’t forget to read the final post in the Crypto 100x Blueprint series:

Thanks,

Dawson