The Vibe: The overall direction a crypto price is moving over time—up, down, or sideways. The Details: A trend shows the general path of price action on a chart. There are three main types:
- Uptrend (bullish): Price makes higher highs and higher lows — buyers are stronger.
- Downtrend (bearish): Price makes lower highs and lower lows — sellers are in control.
- Sideways trend (range-bound): Price bounces between the same high and low levels — no clear winner. Trends can last days, weeks, months, or years. Most traders follow the trend (“the trend is your friend”) rather than fight it.
Pro Tip: Use moving averages (like 50-day or 200-day) on charts to spot trends easily. In uptrends, buy dips; in downtrends, sell rallies or stay out. Zoom out to see the bigger trend before trading.