Technical Analysis of Bitcoin Charts – The Most Common Patterns

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The golden question that many people are asking these days, is bitcoin in a bubble? Some may tell bitcoin charts technical analysis it is, others will say it's not and encourage you to keep buying those dips. Well, let's leave emotions out of this for a minute and take a look at the charts. Chart analysis is a powerful tool to help decide what to do with a stock. There are numerous chart indicators, for example candlesticks, bollinger bands, moving averages, etc.

Most traders, from what I've seen on youtube videos, will focus on one indicator to base their trades on, but this is the wrong approach, as you will see in this article I'm writing.

Wise traders will combine multiple indicators to help in their decision making. The more indicators, the better. For instance, let's focus on three indicators in the case of bitcoin: If you're a novice trader, I encourage you learn about those indicators because they are widely used and very effective. To answer the bubble question, let's look at the evolution of bitcoin bitcoin charts technical analysis the start of From January to Marchbitcoin has been rising slowly and steadily, with normal spikes and dips.

That phase is called a hyperbolic phase, and often it's accompanied by an inevitable crash. Such behavior has been historically repeatable for any stock,currency, gold, silver, etc. If we zoom on that phase, we can see clearer details about it. Even though the bitcoin price is showing an upward trendwith higher highs and higher lows higher peaks and higher dipsthe RSI Relative Strength Index is actually going in the opposite direction, called a divergence.

What it means is that the price is losing strength and will eventually crash. Another tool I'm using is the Bollinger Bands. In a nutshell, we look at the price peaks and how they are behaving compared to the upper or lower bollinger band. In this case, we focus on the upper band. If the peaks A, B, C and D were all touching the upper band in a consistent way, then we can confirm that the market is strong and the price will keep rising.

However, peaks that surpass the upper band indicate an overbought market and usually are accompanied by a dip or correction, or panic sell. And when the candlesticks closing prices start to move away bitcoin charts technical analysis the upper band, that's a divergence, and again, indicates the upcoming crash. For example, D is lower than C, and Bitcoin charts technical analysis is slightly lower than B, when compared to the upper band. For example, the blue line shows a nice upward peaks trend that converge with the price trend, however, when the MACD blue line crosses over the signal line orangethat's a signal that things are reversing, and a downward trend or crash is starting.

So here we have three indicators telling us what's about to happen. Be informed, do your homework, and decide what to do next. I'm afraid the fun ride is over. If you like what you read, please upvote and follow. More articles will come if there's enough encouragement: I am just curious bitcoin charts technical analysis not a trader, but aren't these types of analysis tools typically put to work on stocks?

With the situation currently, we are still trying to decide whether BTC is an asset or a currency, and I still think there will be unpredictable price movements. The same analysis applies to any market, stock, asset, commodity, currency. The big sharks and whales feeding on the smaller fish are making tons of money off the cryptocurrencies, they do not rely on "unpredictable price movements", they analyse before taking any position.

Hello drakos and bitcoin charts technical analysis are my new technical analysis hero. While i disagree without you on bitcoin bitcoin charts technical analysis to and eth toi still like bitcoin charts technical analysis charts and analysis.

Take my upvote even though i was not going to vote for anyone untill i fully charge my steem power as it drained out. The price can vary between the exchanges. But to stay with the Coinbase price, the From there, it can enter a long consolidation before going up bitcoin charts technical analysis down again. I'm afraid the downtrend isn't over yet The end of Bitcoin's rise; a technical analysis.

Prepare for the crash! Authors get paid when people bitcoin charts technical analysis you upvote their post. Cool, I like to learn. More like https: Very good analysis here. Thanks, glad you liked it:

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Cryptocurrency exchanges have become very popular in due to growing interest in Bitcoin and altcoins. One often problematic aspect is cryptocurrency charts, where not only do many exchanges have poor charting functionality, but they also normally only offer these charts for coins they support.

So if you use more than one exchange, to check daily prices you need to go to each individual exchange. This guide goes through websites that offer cryptocurrency charts for a wide range of coins, and lists sites that offer specific features like technical analysis.

When first introduced to crypto, many people will search for 'Bitcoin price' or 'Bitcoin price chart' hoping to see Bitcoin's current and historic price. At this stage most people don't really care about functionality like technical analysis, trading integration, etc. In this space many coins offer their own charts. But if you interact with more than one coin, it's useful to have a single website that supports many different coins.

Some of our favourites that support many thousands of coins, load very fast and have up-to-date data:. Each of these displays historical prices and provides information on where each coin can be traded. For someone trading crypto with technical analysis, the above websites aren't particularly useful. CryptoCompare's advanced charts are the best as they offer a limited range of technical indicators. Below are websites that offer a wide range of technical indicators:.

We'll also mention a trading platform called eToro this is an affiliate link , as next to each crypto on their site they display whether most people are buying or selling that coin. This isn't so much a technical indicator than sentiment on that coin in general TradingView also offers this functionality in even more detail for a wider range of coins.

The below websites offer charts for data like Reddit subscribers, Facebook followers and Twitter likes:. This site cannot substitute for professional investment or financial advice, or independent factual verification.

This guide is provided for general informational purposes only. The group of individuals writing these guides are cryptocurrency enthusiasts and investors, not financial advisors. Trading or mining any form of cryptocurrency is very high risk, so never invest money you can't afford to lose - you should be prepared to sustain a total loss of all invested money.

This website is monetised through affiliate links. Where used, we will disclose this and make no attempt to hide it. We don't endorse any affiliate services we use - and will not be liable for any damage, expense or other loss you may suffer from using any of these.

Don't rush into anything, do your own research. As we write new content, we will update this disclaimer to encompass it. We first discovered Bitcoin in late , and wanted to get everyone around us involved. But no one seemed to know what it was! We made this website to try and fix this, to get everyone up-to-speed! Click here for more information on these. All information on this website is for general informational purposes only, it is not intended to provide legal or financial advice.

Price, Technical Analysis, Community Growth, etc. Mar 31st, Basics Cryptocurrency exchanges have become very popular in due to growing interest in Bitcoin and altcoins. Best all-round cryptocurrency charts When first introduced to crypto, many people will search for 'Bitcoin price' or 'Bitcoin price chart' hoping to see Bitcoin's current and historic price.

Some of our favourites that support many thousands of coins, load very fast and have up-to-date data: CoinMarketCap CoinGecko CryptoCompare Each of these displays historical prices and provides information on where each coin can be traded. Best technical analysis cryptocurrency charts For someone trading crypto with technical analysis, the above websites aren't particularly useful. Below are websites that offer a wide range of technical indicators: TradingView currently supports coins Cryptowatch currently supports coins Coinigy a paid service supporting many hundreds of coins, this is an affiliate link We'll also mention a trading platform called eToro this is an affiliate link , as next to each crypto on their site they display whether most people are buying or selling that coin.

The below websites offer charts for data like Reddit subscribers, Facebook followers and Twitter likes: April 25th, Best Bitcoin Affiliate Programs April 17th, How to Track a Crypto Portfolio? Written by the Anything Crypto team We first discovered Bitcoin in late , and wanted to get everyone around us involved. Never invest money you can't afford to lose.