Most hedge funds simply follow trends. When prices fall, they jump on that move and short the market. Knowing when those funds buy or sell gives traders an edge, since their mechanical trading is indifferent to price action and usually sees follow-through. The levels where they become active can be calculated, which also helps build a broader understanding of bull and bear markets.

Technicals are always prone to interpretation, but they also help clarify where the pain points are and when the momentum of a bull or bear market is shifting. There are some important developments occurring right now that could give traders a leg up before the broader market catches on.

Below we show the most important charts for Bitcoin and Ethereum