Understanding Crypto Market Structure

Aspiring traders often face failure due to a lack of understanding of the crypto market structure.

I’m going to share with you today, if you read this article until the end you will have all the keys to becoming a successful trader. 

As I mentioned above, understanding the crypto market structure. So it is important for you to know that, the expectation and the reality of the crypto market structure.

In this article, we will discuss the concept of crypto market structure and provide you with valuable insights to become a successful trader. This article is divided into three parts, each comprising two sections.

If you are a crypto trader and searching for, an understanding of crypto market structure.

If your question same as any of these queries, then you’ve come to the right place.

Without any more delay, let’s get started!!!

Simple Crypto Market Structure

When we talk about the crypto market structure, it is essential to differentiate between expectation and reality.

While textbooks, articles, and videos often depict market structure as a series of higher highs and higher lows for bullish trends, or lower lows and lower highs for bearish trends, this representation is rarely accurate. In reality, market structure tends to be more complex and unpredictable.

To understand a simple crypto market structure, we need to break it down step by step.

First, we identify the current trading range, which consists of the lows and highs.

Next, we observe the pullback phase, where the price undergoes internal pullbacks before breaking the structure.

The challenge lies in the difference between the swing structure and the internal structure. The external high or low represents the swing structure, while everything in between is considered an internal structure.

One common mistake traders make is assuming that the initial low or high after a pullback is the new structural low or high.

However, this is incorrect if the structure has not been broken. Only when the price breaks the previous structure and pulls back again can we identify a new low or high? It is crucial to differentiate between a large trading range and a smaller one to avoid confusion.

The Three Types of Crypto Market Structure

Understanding the three types of structure is crucial for traders.

In a bullish scenario, when the order flow becomes bearish within a bullish external structure, it indicates an impending pullback.

This internal structure, also known as order flow, represents the present flow of orders in the market. The pullback occurs when the order flow aligns with the directional structure.

On the other hand, in a bearish scenario, the order flow becomes bullish within a bearish external structure, leading to a pullback. Identifying internal structure correctly is essential to determine the market direction accurately.

By recognizing these patterns, traders can make informed decisions based on the current order flow and the overall structure.

Multi-Dimensional Crypto Market Structure

Multi-dimensional crypto market structure refers to the analysis of market structure across different time frames. By analyzing both the 4-hour and 15-minute time frames, traders can gain a comprehensive understanding of the market dynamics.

For example, if the 4-hour structure is bearish, and the 15-minute structure changes from bearish to bullish, it indicates a potential pullback in the 4-hour structure.

Analyzing multi-dimensional structure involves mapping out the trading ranges and identifying the changes in character within each time frame.

Read More: Market Analysis

Traders can determine the direction of the market and make informed trading decisions based on these observations. By understanding the structure within the structure, traders can enhance their entry and exit strategies.

Read More: Basics of Technical Analysis: Explain Support and Resistance in Crypto Trading?

Wrap-Up Crypto Market Structure

I hope now that you’re well aware, and understanding of the crypto market structure In conclusion, the crypto market structure is crucial for any trader aiming to succeed in the financial markets. By grasping the concepts of simple structure, the three types of structure, and multi-dimensional structure, traders can navigate the markets with confidence.

Remember to take your time, study the charts, and implement a disciplined approach to trading based on the rules derived from crypto market structure analysis. With the right knowledge and strategies, you can increase your chances of becoming a successful trader.


What type of market is the crypto market?

The crypto market is a digital marketplace, similar to stock exchanges, where hundreds or thousands of digital currencies can be bought, sold, and traded.

What are the 4 types of cryptocurrency?

The four main types of cryptocurrencies are utility tokens, payment tokens, security tokens, and stablecoins. Additionally, there are DeFi tokens, NFTs, and asset-backed tokens.

What is the market position for cryptocurrency?

Cryptocurrency market position: DeFi accounts for 8.57% of the 24-hour volume, stablecoins make up 89.73%, and Bitcoin’s dominance stands at 49.34%, down 0.24% from the previous day.

Sharing Is Caring:

About The Author

I have had a keen interest in the world of cryptocurrency and blockchain technology since 2013. My entrepreneurial drive led me to create CryptoGuideToday, a blog dedicated to providing comprehensive coverage of all things related to blockchain and cryptocurrencies. My goal is to educate and inform people about these technologies and provide valuable insights. I am a firm believer that self-education is crucial for achieving success in this field.

Contact with Farman

Leave a Comment