ANALYSIS OF CRYPTOCURRENCY DYNAMICS BASED ON CHARTS AND JAPANESE CANDLESTICKS

Abstract

In the modern world, cryptocurrencies have become an important part of the financial system. They provide decentralized circulation of digital assets, based on blockchain technology, which are not controlled by any central institution. The rapid growth in the popularity of Bitcoin, Ethereum and other cryptocurrencies (altcoins) has created a need for reliable methods for analyzing their value, studying their dynamics and patterns of price fluctuations. Due to the high volatility of the cryptocurrency market, traditional valuation methods are not always effective, so technical analysis comes to the fore. One of the most convenient and visual tools for analyzing price fluctuations are Japanese candlestick charts, which are widely used in financial analytics. They allow you to track price changes over time, identify trends, market sentiment and signals for buying or selling assets. Each Japanese candlestick reflects the behavior of buyers and sellers over a certain period of time, which allows traders to determine the moments of entry and exit from the market. Candlestick patterns allow you to predict possible trend reversals or continuations. By combining technical analysis with a visual representation of market processes, a trader can react more quickly to price changes. Thus, Japanese candlesticks are not only a means of graphically depicting price movements, but also a powerful tool for making decisions in the changing conditions of the cryptocurrency market. Charts in cryptocurrency trading serve as the main tool of market processes. They reflect the history of price changes, trading volumes, support and resistance, allowing you to assess the general direction of the asset's movement. In particular, charts help identify trend phases and possible reversal points; to determine the real value of cryptocurrency and its potential for growth and decline.