The Link Between Charts and News

Traders, have you ever noticed how bad news often lines up perfectly with chart movements? If you really pay attention, you’ll see that right before a significant drop, after days of selling, there’s usually some negative headline in the news, and then boom, BTC takes a hit. I’ve seen this happen a lot, and it makes me wonder if there’s something more to it. I’m really interested in hearing your thoughts on this.

I think this could be the start of it, since Bitcoin already dumped below $100k after the US attack on Iran. It’s inevitable, the market will react just like other stocks, but remember, this isn’t permanent. Even when Bitcoin dumps hard, it always finds a way to recover. The real question is, are you willing to take the opportunity to accumulate when these situations show up?

This has always happened, especially with major news that can affect Global economies or let say the US dollar. In the early years, it would be new like crypto bans, exchange delistings, Crypto project collapse (LUNA, FTX) but lately news such as wars lead to movements in the market Also, the way BTC or crypto markets dump these days is not as bad as they used to do back then. Bitcoin could easily dump between 20% to 60% in a day  or two following some bad news.

Most of my analyses are technical. I do sometimes check the news or get alerted to big news related to crypto, but 90% of my analyses are more technical than fundamental. News actually has some impact depending on how good or bad it is, but be careful; not all news out there related to crypto is true; most of them are fake, created just for FUD. If news came from a legit source, then expect a price impact; it's normal. It could be good, which could turn the market bullish, or bad, which could turn the market bearish. For me, even if you don't have a source about the news, the chart should tell you there's something wrong, why there's a sudden market shift, or a huge pump or dump. I don't actually trade on that if I notice those sudden changes in the price action. I look for the reason, and I end up checking the news. That is why the important thing in trading is risk management. If there are sudden changes in the market because of the news, you can prevent your losses from a sudden huge pump or dump. Analyze the market after and plan your entry and exit later because there's a 2nd wave after that huge price action.

I happened to think about same thing. Honestly when looking at chart, it was forming double top in the daily chart and suddenly war happens, it's been like this for long. Is it the chart following the news or news following the chart, we don't know whats exactly it is but it just feels strange how things aligned with the chart structures sometime .

I would say when the news hit the ground - it's too late to think where the market would go, the money makers already have all the info and you can only witness what happens, no entries are needed (especially rushed ones). Surely, news affect the stage, but not to a degree we may think about it.. And it's usually a short-lived influence.

This is very common in the market, that's why knowledge in technical and fundamental analysis is very much of a key for you to be successful because the price chart is just like a sign language telling you what is about to happen next, but if you can't read the sign language like the chart, you will get burnt for trading without proper knowledge of what is happening in the market, so before anything happens in the market, you will definitely sees it in the chart patterns if you know how to read the chart, that's why the chart will definitely correlate with what's going on in the news.

If you are grounded in technical analysis, you will not be too surprised when you see the reaction of Bitcoin to the news because technical guys sees the news as what the market need to gather the momentum that will help it complete the pattern. I have seen many cases in which the news simply makes the big guys achieve things like hitting the protective stops of the retails thereby kicking them out of the market l and then getting their orders filled at lower prices. I have even seen a situation I which the news was negative but the market reacted positively and vice versa. So, the news is simply needed to complete the pattern from technical point of view. If you are familiar with analysing the yield market, you will be able to sport SMT divergence in the interest rate triad and be able to predict the direction of the market upon release of news such as Cpi, nfp and so on.

Big news, or what is said by influential figures in the world regarding Bitcoin, can affect market prices. They are affected because some traders follow what influential figures say. These news stories direct market sentiment to move in a certain direction. Like when Trump spoke about Bitcoin during the election campaign. This creates market sentiment that moves prices. And vice versa. If the news or narrative conveyed is negative, it can create negative sentiment in the market.

This is true, charts don't just move, something has to propel it and it's mostly the fundamentals, when global trends happens it creates the market sentiments to move in certain directions and traders naturally reacts to it. To a large extent influential people directly or indirectly influences and manipulates the market because their actions manifests in market sentiments, take for instance when the actions of Trump, hits major headlines Bitcoin price reacts to it. I believe that traders who are in the know before major news breaksout will have an advantage over those that waits for news to happen.

Depending on the news, it could really have an impact, especially if it is coming from someone with a big following like the president of the United States. When he gives something on his X account, it could move the market. Like you said, it's not just from a person but also from the news, and as long as there is something related to crypto, I think it will move. You can take it as a guide in addition to confirmation of whether you are trading long or short.

The war happened then suddenly theres dump cause its a bad news and when theres a news like that people speculate that it will be one of the reason for a dump so some acted imeediately resulting into flash dump. Well its also the people makes the market goes down due to this norm of events and charts correlation.. But its always goes back to a normal charting.

Now it can be said that the figures who talk about bitcoin, whether negative or positive, become the latest news that can affect the market, so that sentiments like this are getting stronger in the direction that is being discussed. How Trump, carrying out a war attack on Iran, the market moves down, when the Trump campaign talks about adopting bitcoin - then bitcoin goes up. What the important figures say becomes a reference for many whether about positive or negative news, then traders will draw conclusions.

It works most of times but there are times when a good news makes the market falling down and oppositely a bad news makes the market rising. Such times are when the market already feel familiar with bearish or bullish period and positive or negative news, so market participants tend to lose their ability to differentiate positive and negative news. They react in a wrong way that does not match with news type released at that moment. If you always believe that similar news will surely and always make the market move down, for example, and you go shorting bitcoin, let's be careful as there will be times for you to pay high cost with market liquidations.

Maybe you forgot two important tools in trading, the fundamental analysis and technical analysis. News and events are part of fundamental analysis, which you can also use to gauge market sentiment. As a trader, this is an important factor that can impact the market.   Because in trading, we should consider what's happening around the world, as it will surely affect the market. As you can see, the war between Iran and Israel, along with the interference of the United States, is considered to have an impact.   The market is in a bad condition right now, but I think it will recover soon when there is positive news.

This is not new with crypto market and the stocks too, it's been like that for since I can remember, the price of Bitcoin, stocks and other assets always react if some negative news has been released or known, if any positive news is already released, it still influences the market. During this incidents, what sometimes surprises me is that the market quickly respond to those news even before they get published. I remember that something happen few months ago, after Trump was sworn in and he announced the tariff increment, market started fall even before the  news was released, it also happened after he made the announcement that some altcoins like Solana was going to be added in the federal reserve, market started pumping.

There is an opinion that "The news adjusts to the chart, not the chart to the news". This means that according to technical analysis, this price reduction is already included in the chart and the negative news acts only as a catalyst. In general, the price reduction would have happened anyway, even if there had been no negative news.

Technical seems to focus more on the charts and indicators but it was the fundamental is the one that is about the news. About that bad news but the market reacts oppositely, one example would that be is the Ukraine Versus Russia war that we have last time. The market I'm referring to is the crypto because I'm not aware of what it caused outside. As for the good news, I can think of the halving time, specifically the ones that we have recently. Although the effects of it might only be delayed. I won't say that all these are a kind of pattern but reaction or effect is already appropriate. Another reason is because the result is not always expected.

...Or price spiked following positive news too. Bitcoin was highly volatile then unlike this day. It could do big numbers like you said within a day or two. I witnessed those great years of uncertainty also. Now, it seems people/investors don't panic that much anymore. They believe Bitcoin is that proverbial cat with nine lives.

Manipulations in market is possible or could happen but there's no solid evidence that we can be able to point out our fingers and sues them out. Wait, whom you would be trying out to blame into those movements? We do know that there would be always those big players or to those who are sitting at the top on which they could make those possible manipulations for their own benefit but of course they would be that letting it not to be that obvious as much as possible and this is where we do have sudden events that do happen in the space and it could neither be giving out some impact into the market or not. If you do find yourself that you do see up the pattern then you can just that simply ride with that and make that kind of advantage on which this could bring out that potential profits. Fundamentals doesnt always affect out on how the market moves but this is something an analysis that cant be neglect out because if there are some major economic news then we do always assume out that it will be bringing out that such impact whether the news is positive or negative ones then it will be that have that potential effect and this is where we do presume out that it would happen, but we do know that crypto market isnt that always be that highly reactive then it comes to news and sentiments. There are those times that it doesnt have any impact at all and there are those times that even technical analysis and fundamental doesnt work on which it could move out randomly without any basis. One of the main reasons on why there's no assurance about making money within the markets because no matter how good your analysis would be on which the market could easily fucked it out and leave you out or simply do mess up with those analysis that you had made out earlier. It neither correlate or not, there's no way of knowing that and thats why it will be just that depending on you on how you would be able to react accordingly and set out your back up plans if ever the market goes opposite on what you have analyzed. News could neither give out that impact or not and it will be that everything basing or depending on how you would be acting into it. There are those times or moments that you are that being that hesitated just because you are seeing that sometimes it doesnt have any effect.