Binance Square

CryptoZeno

image
Verified Creator
Verified Creator on #BinanceSquare #CoinMarketCap and #CryptoQuant | On Chain Research and Market Insights with Smart Trading Signals
71 Following
1.1K+ Followers
3.6K+ Liked
120 Shared
Posts
PINNED
·
--
Support And Resistance The Key To Avoiding Traps And Increasing Trading ProfitsSupport and resistance are simple concepts. The price finds a level that it’s unable to break through, with this level acting as a barrier of some sort. In the case of support, price finds a “floor,” while in the case of resistance, it finds a “ceiling.” Basically, you could think of support as a zone of demand and resistance as a zone of supply. While more traditionally, support and resistance are indicated as lines, the real world cases are usually not as precise. Bear in mind; the markets aren’t driven by some physical law that prevents them from breaching a specific level. This is why it may be more beneficial to think of support and resistance as areas. You can think of these areas as ranges on a price chart that will likely drive increased activity from traders. Let’s look at an example of a support level. Note that the price continually entered an area where the asset was bought up. A support range was formed as the area was retested multiple times. And since the bears (sellers) were unable to push the price further down, it eventually bounced potentially starting a new uptrend. Now let’s look at a resistance level. As we can see, the price was in a downtrend. But after each bounce, it failed to break through the same area multiple times. The resistance level is formed because the bulls (buyers) were unable to gain control of the market and drive the price higher, causing the downtrend to continue. How traders can use support and resistance levels Technical analysts use support and resistance levels to identify areas of interest on a price chart. These are the levels where the likelihood of a reversal or a pause in the underlying trend may be higher.  Market psychology plays a huge part in the formation of support and resistance levels. Traders and investors will remember the price levels that previously saw increased interest and trading activity. Since many traders may be looking at the same levels, these areas might bring increased liquidity. This often makes the support and resistance zones ideal for large traders (or whales) to enter or exit positions. Support and resistance are key concepts when it comes to exercising proper risk management. The ability to consistently identify these zones can present favorable trading opportunities. Typically, two things can happen once the price reaches an area of support or resistance. It either bounces away from the area or breaks through it and continues in the direction of the trend potentially to the next support or resistance area. Entering a trade near a level of support or resistance area may be a beneficial strategy. Mainly because of the relatively close invalidation point where we usually place a stop-loss order. If the area is breached and the trade is invalidated, traders can cut their loss and exit with a small loss. In this sense, the further the entry is from the zone of supply or demand, the further the invalidation point is. Something else to consider is how these levels may react to changing context. As a general rule, a broken area of support may turn into an area of resistance when broken. Conversely, if an area of resistance is broken, it may turn into a support level later, when it’s retested. These patterns are sometimes called a support-resistance flip. The fact that the previous support zone acts as resistance now (or vice versa) confirms the pattern. As such, the retest of the area may be a favorable place to enter a position. Another thing to consider is the strength of a support or resistance area. Typically, the more times the price drops and retests a support area, the more likely it is to break to the downside. Similarly, the more times the price increases and retests a resistance area, the more likely it is to break to the upside. So, we’ve gone through how support and resistance works when it comes to price action. But what other types of support and resistance are out there? Let’s go over a few of them. Psychological support and resistance The first type we’ll discuss is called psychological support and resistance. These areas don’t necessarily correlate with any technical pattern but exist because of how the human mind tries to make sense of the world. In case you haven’t noticed, we live in a staggeringly complex place. As such, we inadvertently try to simplify the world around us so we can make more sense of it and this includes rounding numbers up. Have you ever thought to yourself that you have a craving for 0.7648 of an apple? Or asked a merchant for 13,678,254 grains of rice? A similar effect is at play in the financial markets. It’s especially true for cryptocurrency trading, which involves easily divisible digital units. Buying an asset at $8.0674 and selling it at $9.9765 just isn’t processed the same as buying it at $8 and selling at $10. This is why round numbers can also act as support or resistance on a price chart. Well, if only it’d be that simple! This phenomenon has become well-known over the years. As such, some traders might try to “frontrun” obvious psychological support or resistance areas. Frontrunning, in this case, means placing orders just above or below an anticipated support or resistance area. Take a look at the example below. As the DXY approaches 100, some traders place sell orders just below that level to make sure those orders are filled. Because so many traders expect a reversal at 100 and many frontrun the level, the market never reaches it and reverses just before. Trend line support and resistance If you’ve read our classical chart patterns article, you’ll know that patterns will also act as barriers for price. In the example below, an ascending triangle keeps the price contained until the pattern breaks to the upside. You can use these patterns to your advantage and identify areas of support and resistance that coincide with trend lines. They can be especially useful if you manage to spot them early, before the pattern is fully developed. Moving average support and resistance Many indicators may also provide support or resistance when they interact with the price.  One of the most straightforward examples of this are moving averages. As a moving average acts as support or resistance for the price, many traders use it as a barometer for the overall health of the market. Moving averages may also be useful when trying to spot trend reversals or pivot points. Fibonacci support and resistance Levels outlined by the Fibonacci retracement tool may also act as support and resistance. In our example below, the 61.8% Fibonacci level acts as support multiple times, while the 23.6% level acts as resistance. We’ve discussed what support and resistance are, and some of their different types. But what’s the most effective way to build trading strategies around them? A key thing to understand is a concept called confluence. Confluence is when a combination of multiple strategies are used together to create one strategy. Support and resistance levels tend to be the strongest when they fall into multiple of these categories that we’ve discussed. Let’s consider this through two examples. Which potential support zone do you think has a higher chance to actually act as support? Support 1 coincides with: a previous resistance areaan important moving averagea 61.8% Fibonacci levela round number in the price Support 2 coincides with: a previous resistance areaa round number in the price If you’ve been paying attention, you’ll correctly guess that Support 1 has a higher chance of holding the price. While this may be true, the price could also fly through it. The point here is that the probability of it acting as support is higher than it is for Support 2. With that said, there are no guarantees when it comes to trading. While trading patterns can be helpful, past performance does not imply future performance, so you should be prepared for all possible outcomes. Historically, the setups that are confirmed by multiple strategies and indicators tend to provide the best opportunities. Some successful confluence traders might be very picky about what setups they enter and it often involves a lot of waiting. However, when they do enter trades, their setups tend to work out with a high probability. Even so, it’s always essential to manage risk and protect your capital from unfavorable price movements. Even the strongest looking setups with the best entry points have a chance of going the other way. It’s important to consider the possibility of multiple scenarios, so you don’t fall into false breakouts or bull and bear traps.

Support And Resistance The Key To Avoiding Traps And Increasing Trading Profits

Support and resistance are simple concepts. The price finds a level that it’s unable to break through, with this level acting as a barrier of some sort. In the case of support, price finds a “floor,” while in the case of resistance, it finds a “ceiling.” Basically, you could think of support as a zone of demand and resistance as a zone of supply.
While more traditionally, support and resistance are indicated as lines, the real world cases are usually not as precise. Bear in mind; the markets aren’t driven by some physical law that prevents them from breaching a specific level. This is why it may be more beneficial to think of support and resistance as areas. You can think of these areas as ranges on a price chart that will likely drive increased activity from traders.
Let’s look at an example of a support level. Note that the price continually entered an area where the asset was bought up. A support range was formed as the area was retested multiple times. And since the bears (sellers) were unable to push the price further down, it eventually bounced potentially starting a new uptrend.
Now let’s look at a resistance level. As we can see, the price was in a downtrend. But after each bounce, it failed to break through the same area multiple times. The resistance level is formed because the bulls (buyers) were unable to gain control of the market and drive the price higher, causing the downtrend to continue.
How traders can use support and resistance levels
Technical analysts use support and resistance levels to identify areas of interest on a price chart. These are the levels where the likelihood of a reversal or a pause in the underlying trend may be higher. 
Market psychology plays a huge part in the formation of support and resistance levels. Traders and investors will remember the price levels that previously saw increased interest and trading activity. Since many traders may be looking at the same levels, these areas might bring increased liquidity. This often makes the support and resistance zones ideal for large traders (or whales) to enter or exit positions.
Support and resistance are key concepts when it comes to exercising proper risk management. The ability to consistently identify these zones can present favorable trading opportunities. Typically, two things can happen once the price reaches an area of support or resistance. It either bounces away from the area or breaks through it and continues in the direction of the trend potentially to the next support or resistance area.
Entering a trade near a level of support or resistance area may be a beneficial strategy. Mainly because of the relatively close invalidation point where we usually place a stop-loss order. If the area is breached and the trade is invalidated, traders can cut their loss and exit with a small loss. In this sense, the further the entry is from the zone of supply or demand, the further the invalidation point is.
Something else to consider is how these levels may react to changing context. As a general rule, a broken area of support may turn into an area of resistance when broken. Conversely, if an area of resistance is broken, it may turn into a support level later, when it’s retested. These patterns are sometimes called a support-resistance flip.
The fact that the previous support zone acts as resistance now (or vice versa) confirms the pattern. As such, the retest of the area may be a favorable place to enter a position.
Another thing to consider is the strength of a support or resistance area. Typically, the more times the price drops and retests a support area, the more likely it is to break to the downside. Similarly, the more times the price increases and retests a resistance area, the more likely it is to break to the upside.
So, we’ve gone through how support and resistance works when it comes to price action. But what other types of support and resistance are out there? Let’s go over a few of them.
Psychological support and resistance
The first type we’ll discuss is called psychological support and resistance. These areas don’t necessarily correlate with any technical pattern but exist because of how the human mind tries to make sense of the world.
In case you haven’t noticed, we live in a staggeringly complex place. As such, we inadvertently try to simplify the world around us so we can make more sense of it and this includes rounding numbers up. Have you ever thought to yourself that you have a craving for 0.7648 of an apple? Or asked a merchant for 13,678,254 grains of rice?
A similar effect is at play in the financial markets. It’s especially true for cryptocurrency trading, which involves easily divisible digital units. Buying an asset at $8.0674 and selling it at $9.9765 just isn’t processed the same as buying it at $8 and selling at $10. This is why round numbers can also act as support or resistance on a price chart.
Well, if only it’d be that simple! This phenomenon has become well-known over the years. As such, some traders might try to “frontrun” obvious psychological support or resistance areas. Frontrunning, in this case, means placing orders just above or below an anticipated support or resistance area.
Take a look at the example below. As the DXY approaches 100, some traders place sell orders just below that level to make sure those orders are filled. Because so many traders expect a reversal at 100 and many frontrun the level, the market never reaches it and reverses just before.
Trend line support and resistance
If you’ve read our classical chart patterns article, you’ll know that patterns will also act as barriers for price. In the example below, an ascending triangle keeps the price contained until the pattern breaks to the upside.
You can use these patterns to your advantage and identify areas of support and resistance that coincide with trend lines. They can be especially useful if you manage to spot them early, before the pattern is fully developed.
Moving average support and resistance
Many indicators may also provide support or resistance when they interact with the price. 
One of the most straightforward examples of this are moving averages. As a moving average acts as support or resistance for the price, many traders use it as a barometer for the overall health of the market. Moving averages may also be useful when trying to spot trend reversals or pivot points.
Fibonacci support and resistance
Levels outlined by the Fibonacci retracement tool may also act as support and resistance.
In our example below, the 61.8% Fibonacci level acts as support multiple times, while the 23.6% level acts as resistance.
We’ve discussed what support and resistance are, and some of their different types. But what’s the most effective way to build trading strategies around them?
A key thing to understand is a concept called confluence. Confluence is when a combination of multiple strategies are used together to create one strategy. Support and resistance levels tend to be the strongest when they fall into multiple of these categories that we’ve discussed.
Let’s consider this through two examples. Which potential support zone do you think has a higher chance to actually act as support?
Support 1 coincides with:
a previous resistance areaan important moving averagea 61.8% Fibonacci levela round number in the price
Support 2 coincides with:
a previous resistance areaa round number in the price
If you’ve been paying attention, you’ll correctly guess that Support 1 has a higher chance of holding the price. While this may be true, the price could also fly through it. The point here is that the probability of it acting as support is higher than it is for Support 2. With that said, there are no guarantees when it comes to trading. While trading patterns can be helpful, past performance does not imply future performance, so you should be prepared for all possible outcomes.
Historically, the setups that are confirmed by multiple strategies and indicators tend to provide the best opportunities. Some successful confluence traders might be very picky about what setups they enter and it often involves a lot of waiting. However, when they do enter trades, their setups tend to work out with a high probability.
Even so, it’s always essential to manage risk and protect your capital from unfavorable price movements. Even the strongest looking setups with the best entry points have a chance of going the other way. It’s important to consider the possibility of multiple scenarios, so you don’t fall into false breakouts or bull and bear traps.
PINNED
#BinanceSquare is currently a true goldmine for crypto content creators. Recently, I received 1 $BNB from a Binance Square creator program that rewards quality content daily, with total rewards reaching up to 200 BNB. In addition, there are programs like Write to Earn and CreatorPad, where you can earn rewards simply by sharing content and engaging with the community. Based on your interaction level, the rewards can be quite meaningful. Let’s grow together on #Binance Square. You follow me ↔ I follow you back. You engage with my content ↔ I engage with yours. Leave a comment below so we can connect and grow together. I will also send $USDT to some of you via Binance Pay. Please leave your #UID in the comments, and I will send it to you. Wishing everyone great creative content and strong results from your hard work. 🙏
#BinanceSquare is currently a true goldmine for crypto content creators.

Recently, I received 1 $BNB from a Binance Square creator program that rewards quality content daily, with total rewards reaching up to 200 BNB.

In addition, there are programs like Write to Earn and CreatorPad, where you can earn rewards simply by sharing content and engaging with the community. Based on your interaction level, the rewards can be quite meaningful.

Let’s grow together on #Binance Square.
You follow me ↔ I follow you back.
You engage with my content ↔ I engage with yours.
Leave a comment below so we can connect and grow together.

I will also send $USDT to some of you via Binance Pay.
Please leave your #UID in the comments, and I will send it to you.

Wishing everyone great creative content and strong results from your hard work. 🙏
The #liquidation heatmap currently shows a large liquidation cluster sitting between 66k and 73k. We are at 78k dollars, and if $BTC drops just 4k down to 73k, the domino effect will begin. Everyone who bought the dip at 80k, 75k, 70k using leverage will start getting forcibly closed. That forced selling pushes the price lower. This leads to more liquidations. That, in turn, pushes the price even lower. The 66k-73k zone is where all the long term buyers are positioned. Billions of dollars in positions have survived the drawdown so far. Possible scenarios: Sweep the lows. Drop to 73k. Trigger liquidations. Domino effect down to 66k. Maximum pain. Never touch it. #BTC holds 78k and grinds higher. Those long positions remain alive, but they turn into resistance on the way up because everyone is waiting to take profit and exit safely. But the thing about liquidation heatmaps is that every time they show everyone where the trap is and say “hopefully we do not get dragged into it”, the market ends up dragging itself straight into it. #StrategyBTCPurchase
The #liquidation heatmap currently shows a large liquidation cluster sitting between 66k and 73k.

We are at 78k dollars, and if $BTC drops just 4k down to 73k, the domino effect will begin.

Everyone who bought the dip at 80k, 75k, 70k using leverage will start getting forcibly closed.

That forced selling pushes the price lower. This leads to more liquidations. That, in turn, pushes the price even lower.

The 66k-73k zone is where all the long term buyers are positioned. Billions of dollars in positions have survived the drawdown so far.

Possible scenarios:
Sweep the lows. Drop to 73k. Trigger liquidations. Domino effect down to 66k. Maximum pain.

Never touch it. #BTC holds 78k and grinds higher. Those long positions remain alive, but they turn into resistance on the way up because everyone is waiting to take profit and exit safely.

But the thing about liquidation heatmaps is that every time they show everyone where the trap is and say “hopefully we do not get dragged into it”, the market ends up dragging itself straight into it.
#StrategyBTCPurchase
Plasma One and the Direction of Stablecoin-Native InfrastructureStablecoin infrastructure becomes meaningful when it moves beyond protocol abstractions and begins to surface as usable financial systems. The introduction of #PlasmaOne signals a shift in how Plasma frames its Layer 1 design, not just as a settlement network, but as an integrated environment where stablecoin functionality is exposed directly at the application level. At the base layer, @Plasma is designed around stablecoin settlement rather than generalized asset execution. Full EVM compatibility via Reth ensures that existing contracts and tooling remain usable, but execution flexibility is constrained by a settlement-first philosophy. This approach prioritizes consistency and predictability, especially for stablecoin flows that behave more like financial operations than speculative transactions. PlasmaBFT provides sub-second finality, which becomes particularly relevant when stablecoins are treated as spendable balances rather than pending transfers. Fast finality reduces the conceptual gap between execution and usability, allowing balances to be reflected with minimal delay. In the context of an application like Plasma One, this creates a user experience closer to traditional payment systems while retaining on-chain settlement guarantees. Stablecoin-centric features further differentiate the system. Gasless USDT transfers and stablecoin-first gas abstract away the need for users to manage multiple assets simply to move value. By aligning transaction costs with the asset being transferred, Plasma reduces cognitive and operational friction. This design choice is especially important when targeting retail users in high-adoption regions, where simplicity often determines whether infrastructure is actually used. $BTC anchored security adds another layer to this structure. Rather than introducing novel trust assumptions, Plasma leverages Bitcoin as a settlement anchor to reinforce neutrality and censorship resistance. For stablecoin systems that may handle significant transactional volume, this anchoring strengthens confidence in final settlement without complicating the execution environment. Plasma One can be viewed as the surface layer where these architectural decisions converge. It reflects an intention to present stablecoin infrastructure not as fragmented protocol components, but as a coherent financial system. Cards, wallets, and applications are not separate products layered on top of the chain; they are expressions of how the underlying settlement logic is intended to be used. Within this framework, $XPL functions as an infrastructural asset supporting network operation rather than as a focal point of speculation. Its role is tied to maintaining the continuity and reliability of settlement as usage scales across retail and institutional contexts. The value proposition emerges from sustained system usage rather than episodic activity. #Plasma direction suggests a broader view of blockchain design, one where stablecoins are treated as first-class financial instruments and infrastructure is built accordingly. Plasma One represents a step toward making that infrastructure tangible, bridging protocol-level design with real-world financial interaction.

Plasma One and the Direction of Stablecoin-Native Infrastructure

Stablecoin infrastructure becomes meaningful when it moves beyond protocol abstractions and begins to surface as usable financial systems. The introduction of #PlasmaOne signals a shift in how Plasma frames its Layer 1 design, not just as a settlement network, but as an integrated environment where stablecoin functionality is exposed directly at the application level.
At the base layer, @Plasma is designed around stablecoin settlement rather than generalized asset execution. Full EVM compatibility via Reth ensures that existing contracts and tooling remain usable, but execution flexibility is constrained by a settlement-first philosophy. This approach prioritizes consistency and predictability, especially for stablecoin flows that behave more like financial operations than speculative transactions.

PlasmaBFT provides sub-second finality, which becomes particularly relevant when stablecoins are treated as spendable balances rather than pending transfers. Fast finality reduces the conceptual gap between execution and usability, allowing balances to be reflected with minimal delay. In the context of an application like Plasma One, this creates a user experience closer to traditional payment systems while retaining on-chain settlement guarantees.

Stablecoin-centric features further differentiate the system. Gasless USDT transfers and stablecoin-first gas abstract away the need for users to manage multiple assets simply to move value. By aligning transaction costs with the asset being transferred, Plasma reduces cognitive and operational friction. This design choice is especially important when targeting retail users in high-adoption regions, where simplicity often determines whether infrastructure is actually used.
$BTC anchored security adds another layer to this structure. Rather than introducing novel trust assumptions, Plasma leverages Bitcoin as a settlement anchor to reinforce neutrality and censorship resistance. For stablecoin systems that may handle significant transactional volume, this anchoring strengthens confidence in final settlement without complicating the execution environment.
Plasma One can be viewed as the surface layer where these architectural decisions converge. It reflects an intention to present stablecoin infrastructure not as fragmented protocol components, but as a coherent financial system. Cards, wallets, and applications are not separate products layered on top of the chain; they are expressions of how the underlying settlement logic is intended to be used.

Within this framework, $XPL functions as an infrastructural asset supporting network operation rather than as a focal point of speculation. Its role is tied to maintaining the continuity and reliability of settlement as usage scales across retail and institutional contexts. The value proposition emerges from sustained system usage rather than episodic activity.
#Plasma direction suggests a broader view of blockchain design, one where stablecoins are treated as first-class financial instruments and infrastructure is built accordingly. Plasma One represents a step toward making that infrastructure tangible, bridging protocol-level design with real-world financial interaction.
Bitcoin Social Sentiment Falls Into Extreme Fear, Mirroring Conditions Seen Near Previous Local Bott$BTC social sentiment has continued to deteriorate, with negative commentary now overtaking positive discussions for the first time in nearly two months. Data from Santiment shows that bearish narratives are once again dominating social media, pushing market psychology into an “extreme fear” zone similar to levels observed during early and late November. Those prior sentiment spikes coincided with periods of intense uncertainty and widespread retail capitulation, which ultimately aligned with local price bottoms rather than the start of prolonged downside trends. The current sentiment structure appears comparable, as fear-driven commentary accelerates while price action remains under pressure, suggesting that emotional selling may be approaching exhaustion. From a broader macro and behavioral perspective, sharp sentiment reversals of this nature often emerge after a significant portion of downside risk has already been priced in. When negative social signals reach extreme levels without a corresponding breakdown in on-chain fundamentals, market participants tend to shift from aggressive selling toward a more defensive and selective positioning phase. While sentiment alone does not define precise turning points, historical patterns indicate that sustained pessimism at this intensity has frequently preceded periods of consolidation or gradual recovery. If this dynamic persists, the current environment may reflect a late-stage correction phase, where downside momentum slows and risk–reward conditions begin to rebalance, even as short-term volatility remains elevated.

Bitcoin Social Sentiment Falls Into Extreme Fear, Mirroring Conditions Seen Near Previous Local Bott

$BTC social sentiment has continued to deteriorate, with negative commentary now overtaking positive discussions for the first time in nearly two months. Data from Santiment shows that bearish narratives are once again dominating social media, pushing market psychology into an “extreme fear” zone similar to levels observed during early and late November.
Those prior sentiment spikes coincided with periods of intense uncertainty and widespread retail capitulation, which ultimately aligned with local price bottoms rather than the start of prolonged downside trends. The current sentiment structure appears comparable, as fear-driven commentary accelerates while price action remains under pressure, suggesting that emotional selling may be approaching exhaustion.
From a broader macro and behavioral perspective, sharp sentiment reversals of this nature often emerge after a significant portion of downside risk has already been priced in. When negative social signals reach extreme levels without a corresponding breakdown in on-chain fundamentals, market participants tend to shift from aggressive selling toward a more defensive and selective positioning phase.
While sentiment alone does not define precise turning points, historical patterns indicate that sustained pessimism at this intensity has frequently preceded periods of consolidation or gradual recovery. If this dynamic persists, the current environment may reflect a late-stage correction phase, where downside momentum slows and risk–reward conditions begin to rebalance, even as short-term volatility remains elevated.
Looking at @Vanar , it feels less like a narrative driven L1 and more like infrastructure built for actual products The design connects AI capabilities with gaming, metaverse, and brand applications, so compute and user activity can scale naturally In that setup, $VANRY works as the utility layer supporting real usage across the ecosystem rather than pure speculation #Vanar
Looking at @Vanarchain , it feels less like a narrative driven L1 and more like infrastructure built for actual products

The design connects AI capabilities with gaming, metaverse, and brand applications, so compute and user activity can scale naturally

In that setup, $VANRY works as the utility layer supporting real usage across the ecosystem rather than pure speculation #Vanar
What stands out with @Plasma isn’t speed or hype, but restraint. The system is built around repetition and clarity, which makes sense when settlement is the core problem being solved. With $XPL sitting at the infrastructure layer, #Plasma treats stablecoin flows as something to organize, not excite. That mindset feels closer to real-world finance than typical crypto design.
What stands out with @Plasma isn’t speed or hype, but restraint.
The system is built around repetition and clarity, which makes sense when settlement is the core problem being solved.

With $XPL sitting at the infrastructure layer, #Plasma treats stablecoin flows as something to organize, not excite.
That mindset feels closer to real-world finance than typical crypto design.
$BTC once had a 87% drawdown that lasted for over a year. Crashing all the way down to the low $200s. At this point it actually did appear it was going to zero. Then it didn't until the next crash, which also didn't, then the next one and the next one, ging higher every time.
$BTC once had a 87% drawdown that lasted for over a year. Crashing all the way down to the low $200s. At this point it actually did appear it was going to zero.
Then it didn't until the next crash, which also didn't, then the next one and the next one, ging higher every time.
#Bitcoin❗ liquidity sandwich🥪 2 strong liquidity levels shining bright for $BTC . Will markets get enough of a bounce at the start of Feb to take both out? IMO yes, but it may take a little time and the US passing the Crypto bill as a catalyst.
#Bitcoin❗ liquidity sandwich🥪

2 strong liquidity levels shining bright for $BTC . Will markets get enough of a bounce at the start of Feb to take both out?
IMO yes, but it may take a little time and the US passing the Crypto bill as a catalyst.
Reviewing @Vanar from a technical lens, $VANRY feels more like infrastructure than a typical token The stack separates memory, reasoning, and execution into clear layers That modular design reduces base layer load and keeps AI tasks deterministic For builders, this means easier scaling, cleaner data flow, and fewer bottlenecks Architecture first, narratives later #Vanar
Reviewing @Vanarchain from a technical lens, $VANRY feels more like infrastructure than a typical token

The stack separates memory, reasoning, and execution into clear layers
That modular design reduces base layer load and keeps AI tasks deterministic
For builders, this means easier scaling, cleaner data flow, and fewer bottlenecks

Architecture first, narratives later #Vanar
Designing Stablecoin Infrastructure as a Coordinated SystemStablecoin settlement works best when it is treated as infrastructure rather than a collection of isolated features. As usage scales, the challenge shifts from enabling transfers to coordinating execution, cost, privacy, and settlement guarantees into a single coherent system. Plasma can be understood through this lens, where each protocol component contributes to reducing friction across stablecoin-native flows. At the core, @Plasma architecture emphasizes coordination between execution and settlement. Rather than layering stablecoin functionality on top of a generalized system, the protocol integrates stablecoin logic directly into its design. This allows transfers to behave predictably across different usage patterns, whether they involve simple payments, treasury operations, or application-level settlement. Execution compatibility plays a stabilizing role within this structure. Full EVM support allows applications to operate within familiar execution semantics while benefiting from infrastructure optimized for stablecoin activity. This balance preserves developer flexibility without introducing unnecessary variability into settlement behavior, which becomes increasingly important as transaction volumes grow. Cost management is treated as a first-class design concern. Features such as zero-fee USDT transfers and stablecoin-based gas mechanisms abstract away volatility from the user experience. By aligning transaction costs with the asset being transferred, Plasma simplifies how stablecoin flows are integrated into operational systems and reduces the need for external cost hedging or buffering logic. Security and finality are integrated as structural properties rather than optional assurances. Plasma settlement model prioritizes clear boundaries between executed and finalized states, enabling stablecoin transfers to be treated as conclusive within predictable timeframes. This clarity supports use cases where downstream systems rely on immediate settlement confirmation rather than probabilistic assumptions. Taken together, these components form a settlement environment that resembles financial infrastructure more than experimental blockchain design. Within this context, $XPL functions as an enabling asset that supports network operation and coordination rather than serving as a speculative focal point. Its relevance is tied to sustained system usage as stablecoin activity continues to expand. #Plasma approach reflects a broader shift in blockchain design. As stablecoins become foundational to on-chain activity, the networks that succeed may be those that optimize for coordinated settlement behavior rather than isolated performance metrics.

Designing Stablecoin Infrastructure as a Coordinated System

Stablecoin settlement works best when it is treated as infrastructure rather than a collection of isolated features. As usage scales, the challenge shifts from enabling transfers to coordinating execution, cost, privacy, and settlement guarantees into a single coherent system. Plasma can be understood through this lens, where each protocol component contributes to reducing friction across stablecoin-native flows.
At the core, @Plasma architecture emphasizes coordination between execution and settlement. Rather than layering stablecoin functionality on top of a generalized system, the protocol integrates stablecoin logic directly into its design. This allows transfers to behave predictably across different usage patterns, whether they involve simple payments, treasury operations, or application-level settlement.

Execution compatibility plays a stabilizing role within this structure. Full EVM support allows applications to operate within familiar execution semantics while benefiting from infrastructure optimized for stablecoin activity. This balance preserves developer flexibility without introducing unnecessary variability into settlement behavior, which becomes increasingly important as transaction volumes grow.
Cost management is treated as a first-class design concern. Features such as zero-fee USDT transfers and stablecoin-based gas mechanisms abstract away volatility from the user experience. By aligning transaction costs with the asset being transferred, Plasma simplifies how stablecoin flows are integrated into operational systems and reduces the need for external cost hedging or buffering logic.
Security and finality are integrated as structural properties rather than optional assurances. Plasma settlement model prioritizes clear boundaries between executed and finalized states, enabling stablecoin transfers to be treated as conclusive within predictable timeframes. This clarity supports use cases where downstream systems rely on immediate settlement confirmation rather than probabilistic assumptions.

Taken together, these components form a settlement environment that resembles financial infrastructure more than experimental blockchain design. Within this context, $XPL functions as an enabling asset that supports network operation and coordination rather than serving as a speculative focal point. Its relevance is tied to sustained system usage as stablecoin activity continues to expand.
#Plasma approach reflects a broader shift in blockchain design. As stablecoins become foundational to on-chain activity, the networks that succeed may be those that optimize for coordinated settlement behavior rather than isolated performance metrics.
In periods when markets slow down, many users move capital into #Binance Earn simply to stay flexible. What’s interesting is how #Plasma connects this familiar behavior with onchain settlement. By supporting $USDT yield at the protocol level, @Plasma focuses on keeping funds productive without constant manual moves. It’s a quiet layer beneath the Earn experience, not a headline feature. $XPL
In periods when markets slow down, many users move capital into #Binance Earn simply to stay flexible.

What’s interesting is how #Plasma connects this familiar behavior with onchain settlement.

By supporting $USDT yield at the protocol level, @Plasma focuses on keeping funds productive without constant manual moves. It’s a quiet layer beneath the Earn experience, not a headline feature. $XPL
I am truly grateful for the recognition from #Binance Square. Receiving 1 $BNB is an honor, but the real value lies in being acknowledged for consistency and genuine contribution. This motivates me to continue delivering in depth, data driven insights to the community. Thank you @Cy123456 @heyi and the Binance Square team for supporting me and fellow creators. 🙏
I am truly grateful for the recognition from #Binance Square.

Receiving 1 $BNB is an honor, but the real value lies in being acknowledged for consistency and genuine contribution.

This motivates me to continue delivering in depth, data driven insights to the community.

Thank you @CY005 @Yi He and the Binance Square team for supporting me and fellow creators. 🙏
Binance Square Official
·
--
Congratulations, @Wendyy_ @TF Invest @CryptoZeno @Batchild @Mastering Crypto you've won the 1BNB surprise drop from Binance Square on Feb 2 for your content. Keep it up and continue to share good quality insights with unique value.
$BTC is trading below the U.S. ETFs avg cost basis after the 2nd & 3rd biggest outflow weeks ever (last week and week before) (and last week’s outflow will increase after IBIT reports friday’s numbers tomorrow) this means the average bitcoin ETF purchase is underwater
$BTC is trading below the U.S. ETFs avg cost basis after the 2nd & 3rd biggest outflow weeks ever (last week and week before)

(and last week’s outflow will increase after IBIT reports friday’s numbers tomorrow)

this means the average bitcoin ETF purchase is underwater
💥 BREAKING: US ISM Manufacturing PMI just came in at a 40 MONTH high of 52.6. Expected was 48.5. The ISM above 50 is bullish for markets. $BTC 🚀
💥 BREAKING: US ISM Manufacturing PMI just came in at a 40 MONTH high of 52.6.

Expected was 48.5.
The ISM above 50 is bullish for markets. $BTC 🚀
#Bitcoin is currently trading inside a liquidity range. Upside liquidity is stacked around 79K–81K, this zone holds sell-side pressure and previous rejections, making it a key area for a potential sweep. Downside liquidity is concentrated around 73K–75K, strong bid absorption is visible here, marking the main demand zone to watch if price flushes. As long as $BTC stays between these two levels, expect volatility, fake breakouts, and liquidity hunts. The real directional move starts only after one side gets fully cleared.
#Bitcoin is currently trading inside a liquidity range.

Upside liquidity is stacked around 79K–81K, this zone holds sell-side pressure and previous rejections, making it a key area for a potential sweep.

Downside liquidity is concentrated around 73K–75K, strong bid absorption is visible here, marking the main demand zone to watch if price flushes.

As long as $BTC stays between these two levels, expect volatility, fake breakouts, and liquidity hunts.

The real directional move starts only after one side gets fully cleared.
99% of Memecoins on DexScreener Are Scams. Here’s How They Trick You and How to Avoid Becoming ExitMemecoins are flooding the market at an insane pace. Every day, new tokens appear on DexScreener, promising the next 100x, viral hype, or “community-driven” dreams. And scammers are feasting on that chaos. Rugs, fake hype, and drained liquidity have become the norm rather than the exception. In 2025, your real edge isn’t being early. It’s being able to spot traps before they snap shut and staying several steps ahead of the frauds. Even Mark Cuban has said memecoins are just musical chairs with money. He isn’t wrong. The only real question is whether you’ll still have a seat when the music stops, or whether you’ll be left holding a bag full of noise and regret. One of the first red flags is unnatural price action. If you see duplicated trades or price staying oddly flat despite heavy volume, something is off. Scammers often use bots to fake activity and hold price steady before pulling liquidity. Real markets breathe. They move, fluctuate, and react. If a chart looks frozen, it’s usually manufactured. Fake volume is one of the most common tricks in the memecoin playbook. In many scams, over 90% of transactions come from brand-new wallets. The goal is simple: make the token look explosive, trigger FOMO, and lure in real buyers. If you don’t catch it early, you’re not early you’re exit liquidity. Scammers don’t care about the meme, the narrative, or the so-called mission. They care about draining wallets. They sell hype, fake hope, and empty promises. The cycle is always the same: pump the chart, dump on buyers, repeat with a new token, then disappear. To make things worse, anyone can buy promotional services. It’s just a question of budget. These services flood the transaction feed, inflate numbers, and create the illusion of legitimacy. You see big activity and assume it’s organic. That assumption is exactly where most people get trapped. The recent indictment of Gotbit only confirmed what many already knew. A well-known crypto “market maker” allegedly faked volume for years, from 2018 to 2024. The strategy was straightforward: inflate numbers, manufacture FOMO, and bait traders into terrible entries. This isn’t an exception. It’s how much of the game is played. That’s why slowing down matters. Study the transactions. If you see countless tiny transactions, like $0.01 trades, it’s usually paid bot activity. It’s engineered momentum, not real demand. Don’t chase the illusion. Always check the data before aping in. Liquidity is where the truth hides. Developers can add or remove liquidity at any time to distort the chart and create a false sense of safety. Many rugs happen right after liquidity looks “healthy.” Sudden changes often reveal the real intent behind the project. A quick social check can save you a lot of money. Search the token’s ticker and look at who’s talking about it. Are there real people discussing it, or just bots echoing the same phrases? Look at the marketing. Organic growth feels very different from paid hype if you know what to look for. Always vet the basics. The website should look deliberate, not rushed. Twitter should show real engagement, not just reposts and giveaways. Telegram should have actual conversation, live moderators, and consistent activity. Empty rooms and scripted messages are major warning signs. Memecoins aren’t evil by default. But most of them are designed to exploit speed, emotion, and FOMO. The more you slow down, verify data, and question what you’re seeing, the less likely you are to become someone else’s liquidity. In this market, survival is alpha. #memecoin #Cryptoscam #dexscreener

99% of Memecoins on DexScreener Are Scams. Here’s How They Trick You and How to Avoid Becoming Exit

Memecoins are flooding the market at an insane pace. Every day, new tokens appear on DexScreener, promising the next 100x, viral hype, or “community-driven” dreams. And scammers are feasting on that chaos.

Rugs, fake hype, and drained liquidity have become the norm rather than the exception. In 2025, your real edge isn’t being early. It’s being able to spot traps before they snap shut and staying several steps ahead of the frauds.

Even Mark Cuban has said memecoins are just musical chairs with money. He isn’t wrong. The only real question is whether you’ll still have a seat when the music stops, or whether you’ll be left holding a bag full of noise and regret.

One of the first red flags is unnatural price action. If you see duplicated trades or price staying oddly flat despite heavy volume, something is off. Scammers often use bots to fake activity and hold price steady before pulling liquidity. Real markets breathe. They move, fluctuate, and react. If a chart looks frozen, it’s usually manufactured.
Fake volume is one of the most common tricks in the memecoin playbook. In many scams, over 90% of transactions come from brand-new wallets. The goal is simple: make the token look explosive, trigger FOMO, and lure in real buyers. If you don’t catch it early, you’re not early you’re exit liquidity.

Scammers don’t care about the meme, the narrative, or the so-called mission. They care about draining wallets. They sell hype, fake hope, and empty promises. The cycle is always the same: pump the chart, dump on buyers, repeat with a new token, then disappear.
To make things worse, anyone can buy promotional services. It’s just a question of budget. These services flood the transaction feed, inflate numbers, and create the illusion of legitimacy. You see big activity and assume it’s organic. That assumption is exactly where most people get trapped.
The recent indictment of Gotbit only confirmed what many already knew. A well-known crypto “market maker” allegedly faked volume for years, from 2018 to 2024. The strategy was straightforward: inflate numbers, manufacture FOMO, and bait traders into terrible entries. This isn’t an exception. It’s how much of the game is played.
That’s why slowing down matters. Study the transactions. If you see countless tiny transactions, like $0.01 trades, it’s usually paid bot activity. It’s engineered momentum, not real demand. Don’t chase the illusion. Always check the data before aping in.

Liquidity is where the truth hides. Developers can add or remove liquidity at any time to distort the chart and create a false sense of safety. Many rugs happen right after liquidity looks “healthy.” Sudden changes often reveal the real intent behind the project.
A quick social check can save you a lot of money. Search the token’s ticker and look at who’s talking about it. Are there real people discussing it, or just bots echoing the same phrases? Look at the marketing. Organic growth feels very different from paid hype if you know what to look for.
Always vet the basics. The website should look deliberate, not rushed. Twitter should show real engagement, not just reposts and giveaways. Telegram should have actual conversation, live moderators, and consistent activity. Empty rooms and scripted messages are major warning signs.

Memecoins aren’t evil by default. But most of them are designed to exploit speed, emotion, and FOMO. The more you slow down, verify data, and question what you’re seeing, the less likely you are to become someone else’s liquidity.
In this market, survival is alpha.
#memecoin #Cryptoscam #dexscreener
💥 Looking at #Vanar architecture, what stands out to me is not speed claims but structure Instead of forcing AI workloads onto a generic chain, @Vanar separates logic into dedicated layers for memory, reasoning, and execution That modular design feels more like a system stack than a typical L1 From a technical view, this could reduce bottlenecks when AI demand scales $VANRY
💥 Looking at #Vanar architecture, what stands out to me is not speed claims but structure

Instead of forcing AI workloads onto a generic chain, @Vanarchain separates logic into dedicated layers for memory, reasoning, and execution

That modular design feels more like a system stack than a typical L1
From a technical view, this could reduce bottlenecks when AI demand scales $VANRY
Quiet Shifts Build The Strongest InfrastructureMost people in crypto chase what moves fast. New narratives, new tokens, new hype cycles. But real infrastructure rarely announces itself loudly. The most important upgrades usually happen quietly at the architecture level, where better design compounds over time and slowly makes older models feel outdated. @Vanar is not trying to win attention with bigger numbers alone. Instead, it is redesigning how a chain thinks, stores data, and executes logic. Rather than treating the blockchain as a simple transaction processor, Vanar approaches it as an intelligent system where data, reasoning, and execution are deeply connected. #Kayon introduces onchain reasoning directly inside the network. Smart contracts and agents can query structured, verifiable data and automate decisions without relying on external middleware or fragile offchain layers. Logic no longer lives outside the chain. It becomes native, which reduces friction and increases reliability for real world use cases like compliance, payments, and automated workflows. #Neutron focuses on the data layer. Instead of storing files as passive blobs or links, it compresses information into compact, queryable forms that remain provable and AI readable. Documents, receipts, and records turn into active data that applications can understand and act on. This shifts blockchain storage from static archiving to functional intelligence. At the base, the full Vanar stack ties everything together into a Layer 1 designed for continuity. Fast execution, structured storage, embedded reasoning. Each layer supports the next, creating an environment where applications do not constantly rebuild context from scratch. As activity grows, efficiency improves rather than degrades. This is the kind of progress that does not create instant noise but quietly reshapes what is possible. Over time, systems built this way become harder to ignore because they simply work better. With $VANRY and the broader #Vanar ecosystem, the shift may be subtle today, yet the long term impact on scalable, AI native infrastructure could be significant.

Quiet Shifts Build The Strongest Infrastructure

Most people in crypto chase what moves fast. New narratives, new tokens, new hype cycles. But real infrastructure rarely announces itself loudly. The most important upgrades usually happen quietly at the architecture level, where better design compounds over time and slowly makes older models feel outdated.
@Vanarchain is not trying to win attention with bigger numbers alone. Instead, it is redesigning how a chain thinks, stores data, and executes logic. Rather than treating the blockchain as a simple transaction processor, Vanar approaches it as an intelligent system where data, reasoning, and execution are deeply connected.
#Kayon introduces onchain reasoning directly inside the network. Smart contracts and agents can query structured, verifiable data and automate decisions without relying on external middleware or fragile offchain layers. Logic no longer lives outside the chain. It becomes native, which reduces friction and increases reliability for real world use cases like compliance, payments, and automated workflows.

#Neutron focuses on the data layer. Instead of storing files as passive blobs or links, it compresses information into compact, queryable forms that remain provable and AI readable. Documents, receipts, and records turn into active data that applications can understand and act on. This shifts blockchain storage from static archiving to functional intelligence.

At the base, the full Vanar stack ties everything together into a Layer 1 designed for continuity. Fast execution, structured storage, embedded reasoning. Each layer supports the next, creating an environment where applications do not constantly rebuild context from scratch. As activity grows, efficiency improves rather than degrades.

This is the kind of progress that does not create instant noise but quietly reshapes what is possible. Over time, systems built this way become harder to ignore because they simply work better. With $VANRY and the broader #Vanar ecosystem, the shift may be subtle today, yet the long term impact on scalable, AI native infrastructure could be significant.
How to Read the Most Popular Candlestick Patterns (And Why Most Traders Misuse Them)Imagine you are tracking the price of an asset like a stock or a cryptocurrency over a period of time, such as a week, a day, or an hour. A candlestick chart is a way to represent this price data visually. The candlestick has a body and two lines (often referred to as wicks or shadows). The body of the candlestick represents the range between the opening and closing prices within that period, while the wicks or shadows represent the highest and lowest prices reached during that same period. A green body indicates that the price has increased during this period. A red body indicates a bearish candlestick, meaning that the price decreased during that period. How to Read Candlestick Patterns Candlestick patterns are formed by multiple candles in a specific sequence. There are numerous patterns, each with its interpretation. While some candlestick patterns provide insight into the balance between buyers and sellers, others may indicate a point of reversal, continuation, or indecision. Keep in mind that candlestick patterns aren’t intrinsically buy or sell signals. Instead, they are a way of looking at price action and market trends to potentially identify upcoming opportunities. As such, it’s always helpful to look at patterns in context.  To reduce the risk of losses, many traders use candlestick patterns in combination with other methods of analysis, including the Wyckoff Method, the Elliott Wave Theory, and the Dow Theory. It’s also common to include technical analysis (TA) indicators, such as trend lines, the Relative Strength Index (RSI), Stochastic RSI, Ichimoku Clouds, or the Parabolic SAR. Candlestick patterns can also be used in conjunction with support and resistance levels. In trading, support levels are price points where buying is expected to be stronger than selling, while resistance levels are price levels where selling is expected to be stronger than buying. Bullish Candlestick Patterns Hammer A hammer is a candlestick with a long lower wick at the bottom of a downtrend, where the lower wick is at least twice the size of the body. A hammer shows that despite high selling pressure, buyers (bulls) pushed the price back up near the open. A hammer can be red or green, but green hammers usually indicate a stronger bullish reaction. Inverted hammer This pattern is just like a hammer but with a long wick above the body instead of below. Similar to a hammer, the upper wick should be at least twice the size of the body.  An inverted hammer occurs at the bottom of a downtrend and may indicate a potential reversal to the upside. The upper wick suggests that the price has stopped its downward movement, even though the sellers eventually managed to drive it back down near the open (giving the inverted hammer its typical shape).  In short, the inverted hammer may indicate that selling pressure is slowing down and buyers may soon take control of the market. Three white soldiers The three white soldiers pattern consists of three consecutive green candlesticks that all open within the body of the previous candle and close above the previous candle's high. In this pattern, the candlesticks have small or absent lower wicks. This indicates that buyers are stronger than sellers (driving the price higher). Some traders also consider the size of the candlesticks and the length of their wicks. The pattern tends to work out better when the candlestick bodies are bigger (stronger buying pressure). Bullish harami A bullish harami is a long red candlestick followed by a smaller green candlestick that's completely contained within the body of the previous candlestick. The bullish harami can be formed over two or more days, and it's a pattern that indicates that the selling momentum is slowing down and may be coming to an end. Bearish Candlestick Patterns Hanging man The hanging man is the bearish equivalent of a hammer. It typically forms at the end of an uptrend with a small body and a long lower wick. The lower wick indicates that there was a significant sell-off after the uptrend, but the bulls managed to regain control and drive the price back up (temporarily). It’s a point where buyers try to keep the uptrend going while more sellers step in, creating a point of uncertainty. The hanging man after a long uptrend can act as a warning that the bulls may soon lose momentum in the market, suggesting a potential reversal to the downside. Shooting star The shooting star consists of a candlestick with a long top wick, little or no bottom wick, and a small body, ideally near the bottom. The shooting star is very similar in shape to the inverted hammer, but it’s formed at the end of an uptrend. This candlestick pattern indicates that the market reached a local high, but then the sellers took control and drove the price back down. While some traders like to sell or open short positions when a shooting star is formed, others prefer to wait for the next candlesticks to confirm the pattern. Three black crows The three black crows consist of three consecutive red candlesticks that open within the body of the previous candle and close below the low of the last candle. They are the bearish equivalent of three white soldiers. Typically, these candlesticks don’t have long higher wicks, indicating that selling pressure continues to push the price lower. The size of the candlesticks and the length of the wicks can also be used to judge the chances of downtrend continuation. Bearish harami The bearish harami is a long green candlestick followed by a small red candlestick with a body that is completely contained within the body of the previous candlestick. The bearish harami can unfold over two or more periods (i.e., two or more days if you are using a daily chart). This pattern typically appears at the end of an uptrend and can indicate a reversal as buyers lose momentum. Dark cloud cover The dark cloud cover pattern consists of a red candlestick that opens above the close of the previous green candlestick but then closes below the midpoint of that candlestick. This pattern tends to be more relevant when accompanied by high trading volume, indicating that momentum may soon shift from bullish to bearish. Some traders prefer to wait for a third red bar to confirm the pattern. Three Continuation Candlestick Patterns Rising three methods The rising three methods candlestick pattern occurs in an uptrend where three consecutive red candlesticks with small bodies are followed by the continuation of the uptrend. Ideally, the red candles should not break the area of the previous candlestick.  The continuation is confirmed by a green candle with a large body, indicating that the bulls are back in control of the trend. Falling three methods The falling three methods are the inverse of the three rising methods. It indicates the continuation of a downtrend. Doji candlestick pattern A doji forms when the open and close are the same (or very similar). The price may move above and below the opening price but will eventually close at or near it. As such, a doji can indicate a point of indecision between buying and selling forces. However, the interpretation of a doji is highly contextual. Depending on where the open and close line falls, a doji can be described as a gravestone, long-legged, or dragonfly doji. Gravestone Doji This is a bearish reversal candlestick with a long upper wick and the open and close near the low.  Long-legged Doji Indecisive candlestick with top and bottom wicks and the open and close near the midpoint. Dragonfly Doji Either a bullish or bearish candlestick, depending on the context, with a long lower wick and the open/close near the high. According to the original definition of the doji, the open and close should be the same. What if the open and close aren't the same but are very close to each other? That's called a spinning top. However, since cryptocurrency markets can be very volatile, an exact doji is quite rare, so the spinning top is often used interchangeably with the term doji. Candlestick Patterns Based on Price Gaps A price gap occurs when a financial asset opens above or below its previous closing price, creating a gap between the two candlesticks. While many candlestick patterns include price gaps, patterns based on gaps aren’t prevalent in the crypto markets because they are open 24/7. Price gaps can also occur in illiquid markets, but aren’t useful as actionable patterns because they mainly indicate low liquidity and high bid-ask spreads. How to Use Candlestick Patterns in Crypto Trading Traders should keep the following tips in mind when using candlestick patterns in crypto trading: Crypto traders should have a solid understanding of the basics of candlestick patterns before using them to make trading decisions. This includes understanding how to read candlestick charts and the various patterns they can form. Don’t take risks if you aren’t familiar with the basics. While candlestick patterns can provide valuable insights, they should be used with other technical indicators to form more well-rounded projections. Some examples of indicators that can be used in combination with candlestick patterns include moving averages, RSI, and MACD. Crypto traders should analyze candlestick patterns across multiple timeframes to gain a broader understanding of market sentiment. For example, if a trader is analyzing a daily chart, they should also look at the hourly and 15-minute charts to see how the patterns play out in different timeframes. Using candlestick patterns carries risks like any trading strategy. Traders should always practice risk management techniques, such as setting stop-loss orders, to protect their capital. It's also important to avoid overtrading and only enter trades with a favorable risk-reward ratio. Candlestick patterns don’t predict the future, but they do reveal how market participants are behaving in real time. Used correctly, they offer insight into momentum, exhaustion, and market psychology. Used incorrectly, they become just another reason traders overtrade and ignore risk. Understanding candlesticks isn’t about finding perfect entries. It’s about learning to read price action with context and letting the market show its hand before you act.

How to Read the Most Popular Candlestick Patterns (And Why Most Traders Misuse Them)

Imagine you are tracking the price of an asset like a stock or a cryptocurrency over a period of time, such as a week, a day, or an hour. A candlestick chart is a way to represent this price data visually.
The candlestick has a body and two lines (often referred to as wicks or shadows). The body of the candlestick represents the range between the opening and closing prices within that period, while the wicks or shadows represent the highest and lowest prices reached during that same period.
A green body indicates that the price has increased during this period. A red body indicates a bearish candlestick, meaning that the price decreased during that period.

How to Read Candlestick Patterns
Candlestick patterns are formed by multiple candles in a specific sequence. There are numerous patterns, each with its interpretation. While some candlestick patterns provide insight into the balance between buyers and sellers, others may indicate a point of reversal, continuation, or indecision.
Keep in mind that candlestick patterns aren’t intrinsically buy or sell signals. Instead, they are a way of looking at price action and market trends to potentially identify upcoming opportunities. As such, it’s always helpful to look at patterns in context. 
To reduce the risk of losses, many traders use candlestick patterns in combination with other methods of analysis, including the Wyckoff Method, the Elliott Wave Theory, and the Dow Theory. It’s also common to include technical analysis (TA) indicators, such as trend lines, the Relative Strength Index (RSI), Stochastic RSI, Ichimoku Clouds, or the Parabolic SAR.
Candlestick patterns can also be used in conjunction with support and resistance levels. In trading, support levels are price points where buying is expected to be stronger than selling, while resistance levels are price levels where selling is expected to be stronger than buying.
Bullish Candlestick Patterns
Hammer
A hammer is a candlestick with a long lower wick at the bottom of a downtrend, where the lower wick is at least twice the size of the body.
A hammer shows that despite high selling pressure, buyers (bulls) pushed the price back up near the open. A hammer can be red or green, but green hammers usually indicate a stronger bullish reaction.

Inverted hammer
This pattern is just like a hammer but with a long wick above the body instead of below. Similar to a hammer, the upper wick should be at least twice the size of the body. 
An inverted hammer occurs at the bottom of a downtrend and may indicate a potential reversal to the upside. The upper wick suggests that the price has stopped its downward movement, even though the sellers eventually managed to drive it back down near the open (giving the inverted hammer its typical shape). 
In short, the inverted hammer may indicate that selling pressure is slowing down and buyers may soon take control of the market.

Three white soldiers
The three white soldiers pattern consists of three consecutive green candlesticks that all open within the body of the previous candle and close above the previous candle's high.
In this pattern, the candlesticks have small or absent lower wicks. This indicates that buyers are stronger than sellers (driving the price higher). Some traders also consider the size of the candlesticks and the length of their wicks. The pattern tends to work out better when the candlestick bodies are bigger (stronger buying pressure).

Bullish harami
A bullish harami is a long red candlestick followed by a smaller green candlestick that's completely contained within the body of the previous candlestick.
The bullish harami can be formed over two or more days, and it's a pattern that indicates that the selling momentum is slowing down and may be coming to an end.

Bearish Candlestick Patterns
Hanging man
The hanging man is the bearish equivalent of a hammer. It typically forms at the end of an uptrend with a small body and a long lower wick.
The lower wick indicates that there was a significant sell-off after the uptrend, but the bulls managed to regain control and drive the price back up (temporarily). It’s a point where buyers try to keep the uptrend going while more sellers step in, creating a point of uncertainty.
The hanging man after a long uptrend can act as a warning that the bulls may soon lose momentum in the market, suggesting a potential reversal to the downside.

Shooting star
The shooting star consists of a candlestick with a long top wick, little or no bottom wick, and a small body, ideally near the bottom. The shooting star is very similar in shape to the inverted hammer, but it’s formed at the end of an uptrend.
This candlestick pattern indicates that the market reached a local high, but then the sellers took control and drove the price back down. While some traders like to sell or open short positions when a shooting star is formed, others prefer to wait for the next candlesticks to confirm the pattern.

Three black crows
The three black crows consist of three consecutive red candlesticks that open within the body of the previous candle and close below the low of the last candle.
They are the bearish equivalent of three white soldiers. Typically, these candlesticks don’t have long higher wicks, indicating that selling pressure continues to push the price lower. The size of the candlesticks and the length of the wicks can also be used to judge the chances of downtrend continuation.

Bearish harami
The bearish harami is a long green candlestick followed by a small red candlestick with a body that is completely contained within the body of the previous candlestick.
The bearish harami can unfold over two or more periods (i.e., two or more days if you are using a daily chart). This pattern typically appears at the end of an uptrend and can indicate a reversal as buyers lose momentum.

Dark cloud cover
The dark cloud cover pattern consists of a red candlestick that opens above the close of the previous green candlestick but then closes below the midpoint of that candlestick.
This pattern tends to be more relevant when accompanied by high trading volume, indicating that momentum may soon shift from bullish to bearish. Some traders prefer to wait for a third red bar to confirm the pattern.

Three Continuation Candlestick Patterns
Rising three methods
The rising three methods candlestick pattern occurs in an uptrend where three consecutive red candlesticks with small bodies are followed by the continuation of the uptrend. Ideally, the red candles should not break the area of the previous candlestick. 
The continuation is confirmed by a green candle with a large body, indicating that the bulls are back in control of the trend.

Falling three methods
The falling three methods are the inverse of the three rising methods. It indicates the continuation of a downtrend.

Doji candlestick pattern
A doji forms when the open and close are the same (or very similar). The price may move above and below the opening price but will eventually close at or near it. As such, a doji can indicate a point of indecision between buying and selling forces. However, the interpretation of a doji is highly contextual.
Depending on where the open and close line falls, a doji can be described as a gravestone, long-legged, or dragonfly doji.
Gravestone Doji
This is a bearish reversal candlestick with a long upper wick and the open and close near the low. 
Long-legged Doji
Indecisive candlestick with top and bottom wicks and the open and close near the midpoint.
Dragonfly Doji
Either a bullish or bearish candlestick, depending on the context, with a long lower wick and the open/close near the high.

According to the original definition of the doji, the open and close should be the same. What if the open and close aren't the same but are very close to each other? That's called a spinning top. However, since cryptocurrency markets can be very volatile, an exact doji is quite rare, so the spinning top is often used interchangeably with the term doji.
Candlestick Patterns Based on Price Gaps
A price gap occurs when a financial asset opens above or below its previous closing price, creating a gap between the two candlesticks.
While many candlestick patterns include price gaps, patterns based on gaps aren’t prevalent in the crypto markets because they are open 24/7. Price gaps can also occur in illiquid markets, but aren’t useful as actionable patterns because they mainly indicate low liquidity and high bid-ask spreads.
How to Use Candlestick Patterns in Crypto Trading
Traders should keep the following tips in mind when using candlestick patterns in crypto trading:
Crypto traders should have a solid understanding of the basics of candlestick patterns before using them to make trading decisions. This includes understanding how to read candlestick charts and the various patterns they can form. Don’t take risks if you aren’t familiar with the basics.
While candlestick patterns can provide valuable insights, they should be used with other technical indicators to form more well-rounded projections. Some examples of indicators that can be used in combination with candlestick patterns include moving averages, RSI, and MACD.
Crypto traders should analyze candlestick patterns across multiple timeframes to gain a broader understanding of market sentiment. For example, if a trader is analyzing a daily chart, they should also look at the hourly and 15-minute charts to see how the patterns play out in different timeframes.
Using candlestick patterns carries risks like any trading strategy. Traders should always practice risk management techniques, such as setting stop-loss orders, to protect their capital. It's also important to avoid overtrading and only enter trades with a favorable risk-reward ratio.

Candlestick patterns don’t predict the future, but they do reveal how market participants are behaving in real time. Used correctly, they offer insight into momentum, exhaustion, and market psychology.
Used incorrectly, they become just another reason traders overtrade and ignore risk.
Understanding candlesticks isn’t about finding perfect entries. It’s about learning to read price action with context and letting the market show its hand before you act.
Login to explore more contents
Explore the latest crypto news
⚡️ Be a part of the latests discussions in crypto
💬 Interact with your favorite creators
👍 Enjoy content that interests you
Email / Phone number
Sitemap
Cookie Preferences
Platform T&Cs