Methodology

How we analyze crypto markets

Transparency matters when money is on the line. Here's exactly what data we use, how our indicators are calculated, and what our analysis can — and can't — tell you.

1. Data sources

Price and volume data comes from major centralized exchanges via the public CoinGecko API, with daily candles stored in our own database for the top 12 cryptocurrencies by market capitalization. We refresh prices on a 5-minute cadence and persist daily closes, highs, lows, and volume.

We do not use private data, on-chain whale tracking, or paid sentiment feeds. Everything we publish is reproducible from publicly available exchange data.

2. Technical indicators

Our screener and weekly briefs are built from a fixed set of industry-standard technical indicators, computed on the daily timeframe unless otherwise stated:

  • Moving averages: 7-day and 30-day simple moving averages (SMA)
  • Momentum: 14-period Relative Strength Index (RSI)
  • Trend: MACD histogram derived from 12/26-period exponential moving averages
  • Volume context: percentage change vs. the 30-day average daily volume

Our calculation code is deterministic — give us the same input prices and you'll always get the same indicator values.

3. Pattern detection

Pattern signals (bullish reversal, bearish reversal, double top, head-and-shoulders, breakout, breakdown) are identified by rule-based scripts that look for specific price+volume conditions on the recent candles. They are not predictions — they're labels for shapes that the market has formed.

A “Bullish breakout” label means price closed above its 7-day average with rising volume; a “Bearish breakdown” is the inverse. Patterns are recomputed on every data refresh, so the same chart can change labels intraday.

4. AI-generated commentary

Weekly market briefs and the daily Market Pulse are written by an LLM fed the structured outputs from steps 2 and 3 above. The AI does not invent prices, percentages, or volume figures — those come straight from our database. It only writes the surrounding prose.

The “Market Sentiment” headline is derived from a simple count of bullish vs. bearish signals across the top cryptocurrencies on the day of publication, not from a language model's opinion.

5. Sentiment scoring

Our overall market sentiment buckets work as follows, where “bullish” means an asset is showing a Bullish or Bullish breakout signal:

  • ≥ 75% bullish: Strong bullish momentum
  • 60–74% bullish: Moderate bullish bias
  • 40–59% bullish: Mixed / waiting for direction
  • 25–39% bullish: Bearish pressure dominates
  • < 25% bullish: Strong bearish sentiment

6. Limitations and disclaimers

Technical analysis is a lens, not a crystal ball. Our signals are based on historical price action and lagging indicators. None of our content is financial advice, none of it constitutes a recommendation to buy or sell any asset, and none of our authors hold a securities license.

Crypto markets are volatile, often illiquid, and frequently move on news that no technical indicator can anticipate. Always do your own research, only invest what you can afford to lose, and consider consulting a qualified financial advisor before making investment decisions.

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Last reviewed: April 12, 2026