How to determine the timing of buying and selling cryptocurrencies?

Through technical analysis and market fundamentals, judge the buying and selling timing of cryptocurrencies, and pay attention to price trends, moving averages, RSI values, project progress, and policy environment.

Mar 28, 2025 at 05:30 pm

The cryptocurrency market is changing, and price fluctuations are like riding a roller coaster, which makes many investors difficult to choose the timing of buying and selling. Don't worry, today I'll give you a practical guide to judging the timing of buying and selling cryptocurrencies.

• Observe price trends : When the cryptocurrency price shows a significant upward trend over a period of time, and the low point of each pullback is higher than the previous one, forming a gradual upward trend, this may be a buying signal. For example, the price of Bitcoin gradually rose from the low point, with low points being US$5,000, US$5,500, US$6,000, etc., showing that the bullish power is gradually increasing.

• Analysis of moving averages : The short-term moving average crosses the long-term moving average to form a "golden cross", which is a common buying signal. For example, the 50-day moving average crosses the 200-day moving average, indicating that the market demand for the cryptocurrency has increased in the short term and the price is expected to continue to rise.

• Utilizing technical indicators : Relative strength index (RSI) is a common indicator for judging overbought and oversold. When the RSI value is below 30, it indicates that the market is in an oversold state and the price may rebound soon. You can consider buying at this time. For example, Ethereum's RSI value once dropped to 25, and then the price bottomed out and rebounded.

• Pay attention to project progress : If the projects behind cryptocurrencies have major positive news, such as technology upgrades, partner expansion, etc., it may drive price increases. For example, a blockchain project has successfully achieved a more efficient consensus mechanism and improved transaction speed, which may attract more investors to buy their tokens.

• Industry policy environment : When regulatory policies are overall friendly to the cryptocurrency market, or have clear support for a certain type of cryptocurrency, it will bring buying opportunities. For example, some countries have introduced policies to encourage the application of blockchain technology, and the prices of related cryptocurrencies may rise accordingly.

• Price trend reversal : The price changes from an upward trend to a downward trend, and the high point of each rebound is lower than the previous one, forming a gradual decline trend, which may be a selling signal. For example, the price of Litecoin fell from its high point, with high points of $200, $180, $160, etc., indicating that the bear power is gradually gaining the upper hand.

• Moving average dead cross : The short-term moving average crosses the long-term moving average, forming a "dead cross", which means that market demand will decline in the short term and the price may fall, so you can consider selling.

• Technical indicators overbought : When the RSI value is higher than 70, the market is in an overbought state and the price may fall back. You can choose to sell at this time. For example, after the RSI value of Ripple reached 75, the price showed a significant pullback.

• Negative news for the project : If there are negative news such as security breaches and changes in team members, such as prices may fall and you should sell them in time. For example, if a cryptocurrency project is hacked, its token price will often plummet.

• Overall industry risks : When the entire cryptocurrency market faces systemic risks, such as the global recession triggers the withdrawal of funds or the regulatory policies become stricter, it is necessary to sell decisively. For example, during the economic crisis, the cryptocurrency market generally fell, and selling early can avoid losses.