Historical Pattern

Definition ∞ A historical pattern describes recurring behaviors or trends observed in past market data or system performance. In cryptocurrency analysis, this refers to identifiable sequences in price movements, trading volumes, or network activity that analysts use to predict future outcomes. These patterns are often studied using technical analysis methods to identify support levels, resistance points, or cyclical market behaviors. Recognizing these patterns can inform trading strategies and risk assessments.
Context ∞ News articles often reference historical patterns when discussing cryptocurrency price predictions or market forecasts. Analysts frequently cite past bull runs or bear markets to provide context for current market conditions. However, the volatility and evolving nature of digital asset markets mean historical patterns do not guarantee future results.