Price action refers to the movement of a cryptocurrency’s price over time. It consists of the changes in price levels, trends, and patterns that occur as traders buy and sell assets. Analyzing price action helps traders make decisions based on historical price movements rather than relying on indicators or external factors.Traders often use candlestick charts to visualize price action, as these provide insights into opening, closing, high, and low prices within a specific time frame. By studying these patterns, traders can identify potential support and resistance levels, which indicate where buying or selling pressure might intensify.Furthermore, price action analysis allows traders to develop strategies based on market psychology. Recognizing patterns, such as breakouts or reversals, can inform entry and exit points for trades. Overall, price action serves as a foundational approach for many traders, emphasizing the importance of direct price movements in making trading decisions.