All the legit statistical evidence is that charts fail to predict anything about a stock's movement. In the book "Evidence-Based Technical Analysis" the author David Aronson analyzed 6,000 technical predictions over many years and found they were basically useless. How many technical analysts are in the Forbes 400 vs. long term owners of an asset or business? Long Term Capital Management was run by Nobel Prize Winners using charts and they almost caused a global depression.
I lament that people seem to always be showing chart XYZ that claim to predict ABC movement for Bitcoin. When in fact these same charts were being used when Bitcoin was $123,000 to justify it going to a million. And the charts in 2022 when Bitcoin was $16,500 indicated it was going lower. It seems to me the only reason to buy Bitcoin is FUNDAMENTAL, based upon the government's certain debasement of the dollar, Bitcoin's portability and the fact only 21 million will ever be mined. The rest seems noise to me.
Why Do So Many People Rely On Charts To Predict Bitcoin?
byu/Full-Atmosphere-4818 inbtc
Posted by Full-Atmosphere-4818
2 Comments
Because it has no fundamentals to go by
Charts don’t predict anything. They can help people make data-driven decisions, relative to individuals goals, time frames, and risk tolerance. But I think people forget that and treat it as if it can predict things. The tool isn’t the issue here. It’s the knowledge and skill of the tool user