Key Points
- Market trends in crypto usually fall into three states: uptrend, downtrend, or sideways.
- An uptrend is defined by higher highs and higher lows… a downtrend by lower highs and lower lows.
- A sideways market in crypto means price is ranging between support and resistance, with no clear directional edge.
- Trend definition in technical analysis is about price behaviour, not opinions, and it is easiest to see on higher timeframes.
- A trend change is not one candle… it is a shift in the sequence of highs and lows and the ability to hold or break key levels.
- If any terms feel unfamiliar, use the Crypto Glossary for quick definitions, then return to this lesson.
Quick Answer
An uptrend is when price makes higher highs and higher lows. A downtrend is when price makes lower highs and lower lows. A sideways market is when price moves within a range between support and resistance. To identify a trend in crypto, start on the daily chart, mark recent swing highs and lows, and determine whether the sequence is rising, falling, or moving sideways.
Where This Lesson Fits
Lesson 7 taught you how trendlines capture direction and pace using diagonal guides. Lesson 8 zooms out and explains the bigger picture: how to label market trends as uptrend, downtrend, or sideways, so you stop guessing and start describing what price is actually doing.
This lesson is part of the Technical Analysis for Beginners series. For the full lesson map and all supporting guides, visit the Technical Analysis for Beginners Hub.
Trend Definition In Technical Analysis
A trend is not a feeling. It is a repeated pattern in how price moves.
A trend is defined by:
- where price makes highs and lows
- whether pullbacks hold or fail
- whether price can break and hold beyond key levels
That is why trend is easiest to read when you stop staring at individual candles and start tracking swing points.
What Is An Uptrend In Crypto?
An uptrend is a market trend where the path of least resistance is up.
Uptrend definition:
- higher highs
- higher lows
That sequence means buyers are willing to pay higher prices and defend pullbacks earlier than before.
What uptrends often look like:
- rallies that break prior resistance
- pullbacks that hold above prior support
- trendlines that price respects during dips
What Is A Downtrend In Crypto?
A downtrend is a market trend where the path of least resistance is down.
Downtrend definition:
- lower highs
- lower lows
That sequence means sellers keep appearing earlier and buyers fail to defend prior areas.
What downtrends often look like:
- bounces that fail below prior resistance
- breakdowns that lose support and cannot reclaim it
- repeated rejections at falling trendlines
Sideways Market Meaning In Crypto
A sideways market in crypto is a range. Price moves back and forth between a ceiling and a floor.
Sideways market definition:
- no clear sequence of higher highs and higher lows
- no clear sequence of lower highs and lower lows
- repeated reactions between support and resistance zones
Ranges are not “nothing happening”. They are where liquidity builds and where many breakouts and fakeouts begin.
How To Identify An Uptrend And Downtrend
Use this simple process.
Step 1: Pick The Right Timeframe
Start here: daily for most readers, weekly if you are looking at multi-month moves.
Lower timeframes are noisier and can flip between trend states quickly.
Step 2: Mark Swing Highs And Swing Lows
Mark: the last two to three obvious swing highs and swing lows.
Now ask:
- are the highs rising, falling, or flat?
- are the lows rising, falling, or flat?
That answer gives you your trend state.
Step 3: Use Key Levels As A Confirmation Layer
Trend is often visible through behaviour around support and resistance.
In an uptrend: old resistance often becomes support.
In a downtrend: old support often becomes resistance.
In a range: price rejects the top and bounces from the bottom repeatedly.
Uptrend Vs Downtrend Crypto, What Matters Most
If you want one concept to remember, it is this:
Trends are sequences.
A single strong move does not automatically change the trend. What matters is whether the sequence of highs and lows actually shifts.
How To Spot A Trend Change
A trend change is usually a process, not a moment.
Here are the most common ways it shows up.
Uptrend To Downtrend
A typical sequence is:
- price fails to make a new high
- price breaks a prior higher low
- rebounds fail at resistance
- lower highs begin to form
This is how the market stops rewarding dip buyers and starts rewarding sellers.
Downtrend To Uptrend
A typical sequence is:
- price stops making new lows
- breaks a key lower high
- holds above a reclaimed level
- higher lows begin to form
This is how the market transitions from “sell rallies” to “buy pullbacks”.
Sideways To Trend
Ranges often resolve with a break and a hold.
A useful filter is:
- do we break the range boundary?
- do we hold beyond it on closes?
- do we see follow-through after the break?
Breakouts without follow-through are common, especially in crypto.
Common Mistakes When Reading Market Trends
- Calling a trend change too early because one candle looks dramatic
- Reading trends only on low timeframes and getting whipsawed
- Forgetting that a sideways market is still a defined condition
- Ignoring key support and resistance zones that define the range
- Confusing volatility with trend direction
A simple rule is: if the swing sequence has not changed, the trend has not changed.
Mini FAQs
What are market trends in crypto?
Market trends in crypto describe the dominant price direction, uptrend, downtrend, or sideways, based on the sequence of highs and lows.
What is an uptrend and downtrend in technical analysis?
An uptrend is higher highs and higher lows. A downtrend is lower highs and lower lows.
What does sideways market mean in crypto?
A sideways market means price is ranging between support and resistance without a clear rising or falling sequence.
How do you identify an uptrend and downtrend?
Start on the daily chart, mark recent swing highs and lows, then check whether the sequence is rising, falling, or flat.
How do you spot a trend change?
Look for a shift in the sequence of highs and lows, often confirmed by breaking and holding beyond a key level, not by one candle.
What is the best timeframe to read market trends?
Daily and weekly timeframes are usually best for identifying the dominant trend. Lower timeframes are noisier and can flip trend states quickly.
Next Lesson
In this lesson you learned the trend definition in technical analysis, how to identify an uptrend and downtrend, what sideways market meaning looks like in crypto, and how to spot a trend change using swing sequences.
Next, Lesson 9 introduces the Simple Moving Average (SMA), one of the most common trend filters used to smooth price and track direction.
For the full lesson map and all supporting guides, visit the Technical Analysis for Beginners Hub.
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Legal And Risk Notice
This content is for education and information only and should not be considered financial, legal, or tax advice. Crypto assets are volatile and high risk. You are responsible for your own research and decisions, and you should consider seeking independent professional advice where appropriate.
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