A Complete Guide to Bitcoin Technical Analysis
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Latest Price News and Analysis
Augur Surges 35%, Low Bitcoin Voume May Lead to Short-Term Drop
by Joseph Young on July 22, 2018 at 4:35 pm
Over the past week, the volume of bitcoin has dropped from $5.5 billion to $3.5 billion, subsequent to a surge in the bitcoin price from $6,800 to $7,500. 36% Drop in Volume In seven days, the volume of bitcoin has dropped by 36 percent, by more than $2 billion. The volume of ether, the native The post Augur Surges 35%, Low Bitcoin Voume May Lead to Short-Term Drop appeared first on CCN […]
Bitcoin Price Booms, App Launches and Acquisitions: This Week in Crypto
by Jake Sylvestre on July 22, 2018 at 3:32 pm
Make sure you check out our previous edition here, now let’s go over what happened in crypto this week. Also, make sure you subscribe for this week’s edition of The CCN Podcast on iTunes or wherever you get your podcasts. Also make sure you check out last weeks interview with Bridge CEO Stephen Hyduchak. Price Watch: Bitcoin increased nearly 18% this week after The post Bitcoin Price Booms, App Launches and Acquisitions: This Week in Crypto […]
Bitcoin Price Weekly Analysis: BTC/USD’s Next Target $8,500
by Aayush Jindal on July 22, 2018 at 6:48 am
Key Points Bitcoin price gained momentum and settled above $7,200 against the US Dollar. There is a major bullish trend line forming with support at $7,000 on the 4-hours chart of the BTC/USD pair (data feed from Kraken). The pair is likely to make the next move either above $7,600 or below $7,240 in the... The post Bitcoin Price Weekly Analysis: BTC/USD’s Next Target $8,500 appeared first on NewsBTC. […]
Ethereum Price Weekly Analysis: ETH/USD Could Revisit $422
by Aayush Jindal on July 22, 2018 at 5:18 am
Key Highlights ETH price struggled to hold gains above $510 and declined sharply against the US Dollar. Recently, there was a break above a bearish trend line with resistance at $457 on the 4-hours chart of ETH/USD (data feed via Kraken). The pair has to close above $477 and the 100 simple moving average to... The post Ethereum Price Weekly Analysis: ETH/USD Could Revisit $422 appeared first on NewsBTC. […]
Bitcoin Cash Price Weekly Analysis: BCH/USD Bullish Above $820
by Aayush Jindal on July 22, 2018 at 4:18 am
Key Points Bitcoin cash price corrected lower and tested the $740 support area against the US Dollar. There is a major bullish trend line in place with support at $750 on the 4-hours chart of the BCH/USD pair (data feed from Kraken). The pair must break the $800 and $820 resistance levels to gain bullish... The post Bitcoin Cash Price Weekly Analysis: BCH/USD Bullish Above $820 appeared first on NewsBTC. […]
0x Gains 12% and Tokens Rise During Volatile Cryptocurrency Markets
by Joseph Young on July 21, 2018 at 6:40 pm
The crypto market has been extremely volatile over the past 24 hours, especially small tokens and digital assets, possibly due to the decline in volume in the past week. Bitcoin’s Weird Movements Yesterday, on July 21, the price of bitcoin surged from $7,400 to $7,600 in a span of 10 minutes, with a spike demand The post 0x Gains 12% and Tokens Rise During Volatile Cryptocurrency Markets appeared first on CCN […]
Worst Not Yet Over for Bitcoin Price: BitMEX CEO Arthur Hayes
by Mark Emem on July 21, 2018 at 6:02 pm
Seems like that anticipated trip to the Lambo dealership will have to be put off for later. According to the co-founder and CEO of Bitcoin Mercantile Exchange, Authur Hayes, the rally that bitcoin has experienced this week was accompanied by healthy volumes, making it possible for higher levels to be reached. However, prices could reverse The post Worst Not Yet Over for Bitcoin Price: BitMEX CEO Arthur Hayes appeared first on CCN […]
XRP Technical Analysis: Spike in XRP FUDs Signals a Bottoming Market
by Dalmas Ngetich on July 21, 2018 at 12:04 am
On a weekly basis, XRP lags and is up one percent in the same time frame. This comes at the backdrop of FUDs and talk of SEC anticipated clarification of XRP. Despite all, XRP is still trading above key support lines. It is likely that weekend’s price action would shape the short to medium term... The post XRP Technical Analysis: Spike in XRP FUDs Signals a Bottoming Market appeared first on NewsBTC. […]
Bitcoin Reigns Supreme in July as Tokens Money Comes Back to BTC
by Joseph Young on July 20, 2018 at 4:12 pm
Throughout May and June, even during bear markets and strong downward movements, tokens performed relatively well against bitcoin. So far, in July, bitcoin has proven its dominance through a stable performance against the US dollar. Why Bitcoin is King, For Now Over the past three months, tokens have had a solid basis to increase in The post Bitcoin Reigns Supreme in July as Tokens Money Comes Back to BTC appeared first on CCN […]
EOS Leads China’s Blockchain Rankings Again, Bitcoin Still Out of Top 15
by Josiah Wilmoth on July 20, 2018 at 12:58 pm
The Chinese government has released its third round of public blockchain rankings, and EOS — the fifth-largest cryptocurrency by total market cap — once again reigned supreme. EOS Tops China’s Blockchain Rankings for Second-Straight Month Those rankings, published by the state-backed China Electronic Information Industry Development (CCID) and released this week, evaluated public blockchain networks The post EOS Leads China’s Blockchain Rankings Again, Bitcoin Still Out […]
Crypto Market Struggles After Mini Bull Run, Ripple Price Down 5%
by Joseph Young on July 20, 2018 at 10:38 am
Subsequent to demonstrating a mini-rally on July 18, the crypto market has declined by $12 billion, triggered by a large drop in the value of tokens. Ripple’s Downtrend Since Wednesday, bitcoin, the most dominant cryptocurrency in the market, has performed relatively well against the US dollar. Its volume, which remained below $3.5 billion last week, The post Crypto Market Struggles After Mini Bull Run, Ripple Price Down 5% appeared first on CCN […]
Bitcoin Price Watch: Can BTC/USD Hold This?
by Aayush Jindal on July 20, 2018 at 8:28 am
Key Points Bitcoin price is consolidating below a key resistance at $7,555 against the US Dollar. There is a connecting bullish trend line forming with support at $7,390 on the hourly chart of the BTC/USD pair (data feed from Kraken). A break below $7,380 could trigger a major downward correction towards $7,100. Bitcoin price is... The post Bitcoin Price Watch: Can BTC/USD Hold This? appeared first on NewsBTC. […]
Cardano Price Analysis: ADA/USD Approaching Key Support
by Aayush Jindal on July 20, 2018 at 8:00 am
Key Highlights ADA price surged towards the $0.2000 level before starting a downside correction against the US Dollar (tethered). There is a significant bullish trend line formed with support at $0.1700 on the hourly chart of the ADA/USD pair (data feed via Bittrex). The pair is correcting lower, but it remains well supported above the... The post Cardano Price Analysis: ADA/USD Approaching Key Support appeared first on NewsBTC. […]
Ripple Price Analysis: XRP/USD Turned Bearish?
by Aayush Jindal on July 20, 2018 at 6:30 am
Key Highlights Ripple price broke a major support area near $0.4750 to move into a bearish zone against the US dollar. There is a key bearish trend line in place with resistance at $0.4700 on the hourly chart of the XRP/USD pair (data source from Kraken). The pair must move back above $0.4750 and the... The post Ripple Price Analysis: XRP/USD Turned Bearish? appeared first on NewsBTC. […]
Ethereum Price Analysis: ETH/USD Facing Uphill Task
by Aayush Jindal on July 20, 2018 at 5:00 am
Key Highlights ETH price declined further and broke the $482 and $475 support levels against the US Dollar. There is a major bearish trend line formed with resistance near $475 on the hourly chart of ETH/USD (data feed via Kraken). The pair has to move above the $475 and $480 resistance levels to move into... The post Ethereum Price Analysis: ETH/USD Facing Uphill Task 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.