Crypto Chart Patterns Cheat Sheet 2025

Our newsletter provides you with the latest news, trends, and insights that you need to stay informed and make informed decisions. The cup and handle pattern indicates the continuation of a pattern and is a bullish indicator. In a downtrend, the price finds its first support (1) which forms the left shoulder of the pattern. The price reverses and moves upward, it finds the second resistance (3), forming the head, which must be higher than the first resistance (1). In an uptrend, the price finds its first resistance (1) which forms the left shoulder of the pattern. In a sharp and prolonged downtrend, the price finds its first support (2) which will form the pole of the pennant.

It includes a wide range of pre- set filters to help find the best cryptocurrencies to invest in based on your specific trading strategy. Consider applying risk management techniques, such as setting stop-loss orders to help protect your investments. After all, knowledge is your best tool when trading cryptocurrencies. Your next step after learning the intricacy of cryptocurrency patterns is to find a great place to trade. Here are my three top recommendations for the best crypto exchanges in the market and what makes them great. To help you implement them better, here are 10 tips that can help you make more informed decisions when reading these patterns for trading.

This pattern is popular for its reliability and clean structure, especially in trending markets, making it a go-to setup for momentum traders. Chart patterns are one of the key tools used by investors and traders to predict future price movements based on past behavior. They are essential in technical analysis, a method that tries to forecast the future price movements of cryptocurrencies based on historical data. For traders, the value lies in combining these patterns with confirmation tools such as trading volume, RSI, or moving averages. Recognizing them can create an edge, but discipline and risk management are equally important. Mastering chart patterns is less about predicting the future with accuracy and more about improving the odds of making informed decisions in a market known for its unpredictability.

Bearish Pattern Breakouts

• With trading patterns, traders have to do many small trades, instead of few big trades.
• Beginners should start with the most reliable crypto chart patterns such as the Inverse Head and Shoulders, Channel Up, and Falling Wedge.
• Simplicity usually works best; focus on a few tools that complement chart patterns rather than cluttering the analysis.
• You set a target for where you’ll take profits, maybe just below the previous high of $20,000, anticipating it might not break the high on the first try.

When the horizontal resistance line meets with the up-sloping support at the apex of the prices, there is a formation of an ascending triangle. Prices can breakout in either direction; this could be a breakout above the horizontal resistance or a breakdown below the up-sloping support leading to a bearish downtrend. These patterns signal potential trend reversals, resembling a “W” (Double Bottom) or an “M” (Double Top). In a Double Top, prices rise to a resistance level twice, failing to break through, and then reverse downward.

• Crypto chart patterns are visual formations created by the price movements of digital assets.
• This is especially common in the crypto market, where fake-outs happen frequently.
• The more you practise recognising these patterns in real time, the more confident and precise your entries will become.
• Cryptocurrencies, while gaining widespread adoption, are still highly speculative and highly volatile assets, making them ideal for trading.
• Many traders watch for this alignment before committing to a position.
• Another group of structures worth noting are Harmonic Patterns, which use Fibonacci ratios to map out potential reversal zones.

What Are Chart Patterns?

These patterns are generally seen as continuation patterns, suggesting that the trend will continue post-breakout. However, they can also signal a trend shift if the breakout goes in the opposite direction, offering flexibility in their use. A symmetrical triangle is a neutral pattern where both the support and resistance lines converge.

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This formation suggests that buyers are becoming more aggressive and pushing the price higher. A breakout above the horizontal resistance line is considered a bullish signal, potentially leading to further price appreciation. A Channel Up pattern is a bullish chart formation that occurs when the price of an asset consistently moves higher while staying confined between two upward-sloping parallel trendlines. The lower trendline acts as support, where buying pressure tends to come in, and the upper trendline serves as resistance, where selling pressure often appears. This pattern reflects a strong and steady uptrend, with price making higher highs and higher lows over time.

These shorter intervals provide frequent signals but can be noisy, with higher chances of false breakouts. A rectangle chart pattern is created when the price of an asset consolidates between two horizontal levels of support and resistance. This chart pattern can signal that the price is about to break out in crypto triangle pattern either direction.

This pattern is considered a bullish continuation pattern — so it gives a buy signal. Price rises and falls depending on the trading action between the two pairs. This is usually represented as a line chart, or more commonly as Japanese candlesticks. It is the line or candlesticks that a technical analyst draws lines across to discover and highlight potential chart patterns.