A Complete Guide to Bitcoin Technical Analysis
Latest posts by Dean (see all)
- Everything you need to be a Bitcoiner in Australia - September 12, 2019
- Prospects and advantages of cryptocurrency trading in virtual reality - September 5, 2019
- Inmining: evolution of the mining industry - September 4, 2019
Latest Price News and Analysis
Dismal Jobs Growth and Consumer Spending to Supercharge Bitcoin
by Kiril Nikolaev on September 13, 2019 at 6:00 pm
Bitcoin bears have come out of hiding over the last few weeks as the number one cryptocurrency struggles to stay above $10,000. Since the digital asset printed a 2019 high of $13,880 on June 26th, market participants started to feel jittery. In the last month, market sentiment has ranged from fear to extreme fear. The […] The post Dismal Jobs Growth and Consumer Spending to Supercharge Bitcoin appeared first on CCN.com
Venture Capitalist: Bitcoin Offers Escape From Crippling Monetary Policy
by Kiril Nikolaev on September 13, 2019 at 2:30 pm
According to Investopedia, the first paper money in the U.S. was issued on February 3, 1690 by the Massachusetts Bay Colony. Less than two hundred years later, Americans were able to trade $20.67 for an ounce of gold. In other words, the U.S. dollar was backed by gold. This was an effective system as it […] The post Venture Capitalist: Bitcoin Offers Escape From Crippling Monetary Policy appeared first on CCN.com
How To Trade Bitcoin Like A Whale, Not A Guppy
by Lawrence Meyers on September 13, 2019 at 9:00 am
As a bitcoin skeptic, I don’t think it is a good idea for anyone to be trading or holding bitcoin or any other cryptocurrencies. However, I recognize that many investors are watching the bitcoin action and want to get involved. While I think this is a terrible idea, there are trading strategies utilized by the […] The post How To Trade Bitcoin Like A Whale, Not A Guppy appeared first on CCN.com
Bitcoin Price (BTC) Rebounding But Can Bulls Overcome $10,500?
by Aayush Jindal on September 13, 2019 at 5:28 am
Bitcoin price remained well supported above the main $10,000 level against the US Dollar. The price is trading nicely above the $10,250 resistance, but it might struggle near $10,500. Yesterday’s highlighted key declining channel was breached with resistance near $10,140 on the hourly chart of the BTC/USD pair (data feed from Kraken). The price is... The post Bitcoin Price (BTC) Rebounding But Can Bulls Overcome $10,500? appeared first on NewsBTC.
Ethereum Price (ETH) Eyeing Upside Break, Bitcoin Up 2%
by Aayush Jindal on September 13, 2019 at 3:08 am
ETH price stayed above the key $175 support and recovered recently against the US Dollar. Bitcoin price is trading nicely and it recently broke the key $10,250 resistance area. This week’s followed major bearish trend line was breached with resistance near $178 on the hourly chart of ETH/USD (data feed via Kraken). The pair is... The post Ethereum Price (ETH) Eyeing Upside Break, Bitcoin Up 2% appeared first on NewsBTC.
ECB: Cryptocurrency Cannot Be Created By Member States, What This Means...
by Samuel Wan on September 12, 2019 at 1:00 pm
The European Central Bank (ECB) has attacked plans for an Estonian state-operated cryptocurrency. ECB President, Mario Draghi shut down any talk of the proposal by saying about crypto assets: “No member state can introduce its own currency…The currency of the euro zone is the euro.” Many observers theorize that Draghi’s response is led by a... The post ECB: Cryptocurrency Cannot Be Created By Member States, What This Means For Crypto appeared first on NewsBTC.
Will Ripple CEO Address XRP Dumping At Fintech Week?
by Samuel Wan on September 12, 2019 at 11:00 am
Ripple CEO, Brad Garlinghouse is a confirmed keynote speaker at this year’s DC Fintech Week. Although the agenda precludes XRP price, many see this as a further opportunity for Garlinghouse to address concerns over XRP dumping, which some attribute to price stagnation in the divisive token. Will Garlinghouse Address The Issue Of Ripple Dumping XRP?... The post Will Ripple CEO Address XRP Dumping At Fintech Week? appeared first on NewsBTC.
Here’s Why China is Pushing A Central Bank Digital Currency, Not Crypto
by Samuel Wan on September 12, 2019 at 10:00 am
China is set to launch the world’s first central bank digital currency (CBDC). As the majority of central banks, including in the US and Europe, are tentative over issuing their own CBDCs, the People’s Bank of China (PBoC) has gone all-in on the idea of a digital Yuan and not a crypto asset. But this... The post Here’s Why China is Pushing A Central Bank Digital Currency, Not Crypto appeared first on NewsBTC.
Bitcoin Price (BTC) Showing Signs of Continued Weakness
by Aayush Jindal on September 12, 2019 at 6:00 am
Bitcoin price is moving lower and is trading well below the $10,250 resistance against the US Dollar. The price is likely to extend its decline below the $10,000 support level in the coming sessions. There is a major declining channel forming with resistance near $10,180 on the hourly chart of the BTC/USD pair (data feed... The post Bitcoin Price (BTC) Showing Signs of Continued Weakness appeared first on NewsBTC.
Ripple Price (XRP) Could Breakdown Below $0.2480
by Aayush Jindal on September 12, 2019 at 5:00 am
Ripple price is struggling to gain momentum above the $0.2600 resistance against the US dollar. The price is currently declining and it could continue to move down below $0.2520. There is a connecting bearish trend line forming with resistance near $0.2545 on the hourly chart of the XRP/USD pair (data source from Kraken). The price... The post Ripple Price (XRP) Could Breakdown Below $0.2480 appeared first on NewsBTC.
Ethereum Price (ETH) In Corrective Decrease But Likely To Bounce Back
by Aayush Jindal on September 12, 2019 at 4:08 am
ETH price is slowly moving down and recently broke the $180 support area against the US Dollar. The price could soon test the $172 or $170 level before it starts a fresh increase. Yesterday’s highlighted key bearish trend line is still active with resistance near $179 on the hourly chart of ETH/USD (data feed via... The post Ethereum Price (ETH) In Corrective Decrease But Likely To Bounce Back appeared first on NewsBTC.
Ethereum Will ‘Mega Moon’ Against Bitcoin, Predicts Trader
by Kiril Nikolaev on September 11, 2019 at 11:00 pm
To say that Ethereum is weakening against the king of cryptocurrencies would be a huge understatement. The ETH/BTC pair is down by nearly 50% year-to-date as it languishes in bear territory for 17 months and counting. The sentiment is so overwhelmingly bearish that some traders are happy to short the crypto pair. $ETH / $BTC […] The post Ethereum Will ‘Mega Moon’ Against Bitcoin, Predicts Trader appeared first on CCN.com
Bitcoin’s Boring Again. Is $10,000 BTC’s Yawn-Worthy New Normal?
by Will Heasman on September 11, 2019 at 4:56 pm
After bitcoin’s parabolic renaissance sparked hopes of new highs back in April, the expectation of BTC reclaiming $20,000 has become a fleeting reality. In recent weeks, bitcoin has sluggishly ranged between $10,000 and $11,000, causing its trademark volatility to vanish. Tranquil Bitcoin Market Leaves Traders Daydreaming of More Volatile Times Research from cryptocurrency fund manager […] The post Bitcoin’s Boring Again. Is $10,000 BTC’s Yawn-Worthy New Normal? […]
Bitcoin Price (BTC) Remains In Steady Corrective Decrease
by Aayush Jindal on September 11, 2019 at 5:28 am
Bitcoin price is slowly declining and recently broke the $10,000 support area against the US Dollar. The price is facing an uphill task and it might continue to struggle near $10,250 and $10,300. There is a major bearish trend line forming with resistance near $10,250 on the hourly chart of the BTC/USD pair (data feed... The post Bitcoin Price (BTC) Remains In Steady Corrective Decrease appeared first on NewsBTC.
Ethereum Price (ETH) Could Breakdown In Short Term, Bitcoin Down 3%
by Aayush Jindal on September 11, 2019 at 3:08 am
ETH price is struggling to continue to move higher above the $185 resistance against the US Dollar. The price is likely to decline if bitcoin continues to struggle below the $10,250 level. There is a connecting bearish trend line forming with resistance near $182 on the hourly chart of ETH/USD (data feed via Kraken). The... The post Ethereum Price (ETH) Could Breakdown In Short Term, Bitcoin Down 3% appeared first on NewsBTC.
What is Technical Analysis?
Technical analysis (TA) is a methodology for forecasting future price movements by studying past market data for price and volume, and seeking patterns within that data.
A technical analyst will look for continuing patterns, or trends, which indicate the general direction of price movement. They will also look for repeating patterns, which are used to gauge whether a trend is likely to continue or reverse, and to indicate the point at which a reversal may take place. In addition to visually recognizable patterns, various mathematical models are used to indicate trend reversals or confirm continuing trends. These mathematical ‘indicators’ are often visually represented on charts using an ‘overlay’. Indicators can be used to select entry points for longer term positions determined via fundamental analysis, or for day trading strategies such as swing trading.
Many of these visual and mathematical patterns, which tend to repeat over and over again in various different financial markets, have been identified over the course of centuries. Analysts will seek to identify these patterns forming within current market data in order to find indicators for forecasting, and multiple indicators will usually be combined together to provide buy or sell signals of varying strengths.
A typical chart has been embedded at the top of this page which includes two common indicators – Bollinger bands and moving average lines – and one more interesting and unusual indicator: the phases of the moon. You can modify the chart to look for other indicators by clicking the button which looks like a bar chart with a zig-zag arrow above it.
Does it Work for Bitcoin & Altcoins?
The patterns studied by TA are generally caused by the actions of market participants themselves, rather than any changes to the underlying value of what is being traded (although of course the underlying value changes are ‘priced in’ by the market participants). They represent common psychological traits, the actions of people making decisions based on knowledge which comes into their possession, and so on. As such, these techniques can be applied to most financial markets.
It is generally thought, however, that these techniques do tend to break down in smaller markets with low volume and liquidity.
So it is probably safe to say that if technical analysis works at all, then it should work for Bitcoin. But is also true to say that it will be unreliable for smaller altcoin markets. This is not a hard rule, but a general guide. The most popular altcoins, or coins going through periods of high volume, may prove to be valid exceptions. It is down to the individual trader to make a judgement as to what extent these tools can be trusted for any specific market.
Top Resources for Bitcoin Technical Analysis by Experts
If you are new to this topic then perhaps the best thing that you can do is follow the analysis provided by established experts, both for making more educated investment decisions and for learning how to become a better analyst yourself. You can view some great articles published on news websites in the left hand column of this page, but for more detailed and timely information here are some of the best sources for professional analysts’ opinions on the Bitcoin price:
- XBT Social: For a monthly membership fee this site give you access to a daily analysis by professional traders, email alerts for sudden price movements, exclusive news stories, and access to an ‘exclusive community’ of other traders.
- BullBearAnalytics: A team of professional analysts provide paying members of this site with complete, actionable trade signals for both BTC and altcoins, a daily market update, and a more in-depth weekly report.
- BraveNewCoin Reports: This is a well-known information site which publishes regular reports covering sentiment, fundamental and technical analysis extended across a wide range of altcoin markets as well as BTC.
- TradingView: In addition to providing a range of charting tools you may find useful, TradingView allows its users to share their analysis with others. This is the only source in this section where you an view content for free, but please beware that not all of the authors are professional traders.
Analyst Opinion Summary
The widget you can see below displays the latest opinion of analysts on Investing.com with simple signals of ‘Strong Buy’, ‘Buy’, ‘Neutral’, ‘Sell’ and ‘Strong Sell’. It is automatically set to a 1 minute time Frame which probably won’t be very useful for most traders, but you can change that to display a longer period without leaving the page:
Bitcoin Technical Analysis Software: Charts and Tools
A handy charting tool created by TradingView is provided at the top of this page, and I wholeheartedly recommend you have a play with it if you haven’t already. But of course there are also many other useful charts and tools that you may like to use. Here are some of the best ones:
- Cryptowatch – This site allows you to view price data chart from a range of different exchanges for BTC/USD, BTC/EUR and BTC/CNY. They offer a range of different chart types including Heikin-Ashi, bar, line, mountain or candlestick, and access to a wide range of customizable indicators and overlays. If you create an account you can also connect it to the Bitfinex exchange API and use it as a complete trading platform.
- BTC-E – One of the most popular tools on the traditional financial markets is MetaTrader 4. This exchange allows you to use MT4 for Bitcoin trading.
- Bitcoin Charts – This site has a clean design and is easy to use, and offers a wide range of charts including candlestick, OHLC, closing, median, or typical price, and weighted close. You can view data from pretty much every BTC/fiat exchange with up to four indicators at a time.
- Quandl – If you want to go beyond price and volume data to look at things like the transaction and mining data then this is a great source of information with lots of different charts and the option to export data via API or download as CSV files.
- TradingView – You can see and use the charting tool from TradingView at the top of this page.
- BitcoinChain – An interesting combination of TA charting tools and block explorer for general network stats and transactions, which also pulls order books and latest trades from several top exchanges.
Best Free Sites to Start Learning Technical Analysis
There are loads of great resources available on the internet that you can access for free, to start your journey and learn all about TA. Here is a small selection of the best ones:
- Investopedia: The Basic of Technical Analysis – If you are a complete beginner then this is a great place to start. It will introduce you to the basic principles and terminology that you need to know, as well as some of the most popular chart types and indicators.
- Chart School – This free resource provided by the StockCharts.com website includes a huge amount of information on every aspect of TA.
- InvestTools – There are some really excellent paid courses here, but there are also several free classes which are well worth it for beginners.
- ProBitcoinTrading – Although not specifically related to just TA, this site offers some excellent general trading tips, including a free ebook as well as premium ebooks and consultancy services.