How To Know When Trend Reverses Cryptocurrency

How to know when trend reverses cryptocurrency

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If you’ve been in the crypto scene for awhile, you’ve probably heard some unique terms.

When I first started off trading cryptocurrencies, I was super confused at some of the things people were saying. Hopefully this post will clear up some of the confusion!

51% Attack

A 51% attack is a situation where more than half of the computing power on a network is operated by a single individual or concentrated group, which gives them complete and total control over a network.

Things that an entity with 51% of the computing power can do include, but are not limited to:

  • Halting all mining.
  • Halting and manipulating all interpersonal transactions.
  • Use singular coins over and over, also called double spending


An altcoin is any cryptocoin that is not Bitcoin. Ethereum, Litecoin, Dash, Ripple, etc.

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are all altcoins.

Bear Trap/Bull Trap

Bear Trap: A situation in which investors who sold short near the bottom of a down cycle find themselves trapped when the market unexpectedly reverses.

More people will begin to sell out of fear it will continue to trop.

How to know when trend reverses cryptocurrency

This will cause the upward momentum to slow and the market often resumes its downward trend.

Bull Trap: A false signal indicating that a declining trend in a cryptocurrency has reversed and is heading upwards when, in fact, it’s continuing to drop.A bull trap often causes some investors to buy the coin, but because the it continues to decline after the initial signal, those who bought in are “trapped” in a bad investment.


The blockchain acts as a general ledger, keeping track of all the transactions that happen within the network.

Everyone can look at the blockchain to see what transactions have happened on the network.


A block is part of a blockchain.

Blocks act as pages in the blockchain and they contain a transaction data.

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Once a transaction is made, it gets added to a block. Once the block height is reached, it will then be mined to confirm it’s legitimacy.


A bubble occurs when a market is driven upward by investors.

If the market is perceived to have “topped out,” or investors believe it will no longer retain its overall worth, the bubble can “burst.” This represents a massive sell-off by investors, which can make market value drop sharply.


When a block of transaction information is successfully processed, or mined, all the transactions within that data block are considered confirmed, or validated.


Fiat is used by the crypto community to describe whatever currency you use.

How to know when trend reverses cryptocurrency

For example, canadian dollars, usd dollars, etc. When you cash out your cryptocoins, fiat is the currency you receive once you’re ready to sell and get cash (weather it be USD, CAD, AUD, etc.)


Forks create an alternate version of the blockchain, leaving two blockchains to run simultaneously on different parts of the network.


Yes, you read that correctly.

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H.O.D.L stands for Hold On for Dear Life. It means the same thing as hold, which means to hang on to your cryptocoin(s) and not sell it for a long time.

How to know when trend reverses cryptocurrency

This is because the people believe the value will significantly increase in a few months/years.


A node is essentially a computer connected to the network. A node supports the network through validation and relaying of transactions.

Pump and Dump

Pump and Dump (P&D) is a form of crypto manipulation that involves artificially inflating the price of an owned coin through false and misleading positive statements, in order to sell the cheaply purchased coin at a higher price.


The smallest unit of bitcoin available, names after the creator Satoshi Nakamoto.

How to Spot the Trend and Reversal - Bitcoin Technical Analysis

One bitcoin contains 100,000,000 (100 million) satoshi’s.


A place to hold your cryptocoins.

When you create a wallet, you’re given an address (that looks something like: 1BoatSLRHtKNngkdXEeobR76b53LETtpyT)

Different altcoins have addresses that may look a little different, but it’s the same idea.


A whale is someone who is a “big player” and invests a lot of money. If they own enough of one coin, they could theoretically alter the price of a coin in their favor.