Price prediction vs. Technical Analysis

Hello everyone :raising_hand_man:. I am wondering what I should do when a specific token has a bullish price prediction but rates as “very bearish” in terms of technical analysis.

For instance BTC: it seems to be on a bullish trend and TM’s price prediction indicates a bullish evolution for the next 30 days. However, TA rates BTC as “very bearish”. What is the best approach when we face this type of information, which seems contradictory to me. Maybe I am misunderstanding it.

Hey Christoph,

Thanks for being a Token Metrics customer. The reason for the discrepancy between these two metrics is that they are run on two different models using different data points. The price predictions are made using historical pricing data and the TA is our main AI model that creates the TM grade. This article details more about the differences between the two and should help you make a decision:

Hi Chase.

Thank you for your reply. I read the article. I was aware that the TA and AI prediction models are independent but I understand it now a bit better. However, I was hoping for some advice regarding these type of extreme and contradictory situations. What to do? Which model to trust? I understand that this is a difficult question :sweat_smile: Basically, since I am still quite inexperienced in crypto, I tend to follow price prediction because it is more intuitive. But I guess TA might be backed my more information which can influence the markets.

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Hey Christoph!

You can watch some of our videos which give examples of how to utilize both at the same time.

This is one for Ethereum:

Hope that helps!

Thank you Alejandro. I will try to search for some additional information, namely in TM’s videos. Also, I checked the link for the video that you suggested but, in fact, this video does not explain how to use TM’s price prediction and TA tools. This particular video only focuses on Bill Noble’s price predictions and TA analysis - nothing to do with TM tools. Anyway, thank you.