A Complete Guide to Bitcoin Technical Analysis
Latest posts by Dean (see all)
- SimpleFX Makes CFD Trading Fast and Easy Like Never Before with the Launch of the New SimpleFX WebTrader Tool - October 15, 2018
- 10 of the best gaming cryptos to buy as an investment - October 14, 2018
- Moonshots: 5 Cryptocurrencies most likely to see 10x gains - October 7, 2018
Latest Price News and Analysis
Ethereum Classic Price Analysis: ETC/USD Eyeing Upside Break Above $10
by Aayush Jindal on October 16, 2018 at 8:30 am
Key Highlights Ethereum classic price is forming a decent support base near the $9.20 level against the US dollar. There is an ascending channel formed with support at $9.35 on the hourly chart of the ETC/USD pair (Data feed via Kraken). The pair is likely to move higher and it could even break the $10.00... The post Ethereum Classic Price Analysis: ETC/USD Eyeing Upside Break Above $10 appeared first on NewsBTC. […]
Ripple Price Analysis: XRP/USD Bullish Above $0.4250
by Aayush Jindal on October 16, 2018 at 7:28 am
Key Highlights Ripple price surged higher and broke the key $0.4200 and $0.4300 resistance levels against the US dollar. There is a short-term channel formed with support at $0.4290 on the hourly chart of the XRP/USD pair (data source from Kraken). The pair is likely to break the $0.4500 resistance to climb once again towards... The post Ripple Price Analysis: XRP/USD Bullish Above $0.4250 appeared first on NewsBTC. […]
Ethereum Price Analysis: Entry of Fidelity a Game Changer, ETH up 2%
by Dalmas Ngetich on October 16, 2018 at 6:40 am
Straight from Fidelity Investment creation of a new crypto subsidiary to yesterday’s altcoins revival, odds are ETH are likely to edge higher today. Though it is down six percent in the last week, the three percent gain in the last 24 hours at the back of high trading volumes could be the impetus bulls need... The post Ethereum Price Analysis: Entry of Fidelity a Game Changer, ETH up 2% appeared first on NewsBTC. […]
Ethereum Price Analysis: ETH/USD Holding Gains Above $200
by Aayush Jindal on October 16, 2018 at 6:28 am
Key Highlights ETH price surged above the $215 level and later retreated towards $200 against the US Dollar. There is a key connecting bullish trend line in place with support at $202 on the hourly chart of ETH/USD (data feed via Kraken). The pair needs to break the $204-205 resistance area to resume its upside... The post Ethereum Price Analysis: ETH/USD Holding Gains Above $200 appeared first on NewsBTC. […]
Crypto Market Stabilizes as Tether Recovers, Real Bitcoin Price at $6,450
by Joseph Young on October 16, 2018 at 6:07 am
The crypto market has stabilized after a wild 24-hour period triggered by the sudden increase in the price of Bitcoin. On cryptocurrency-only and Tether-integrated exchanges like OKEx, Huobi, and Bitfinex, the price of Bitcoin exceeded $7,700, as the value of Tether (USDT), which is supposed to be pegged to that of the US dollar on The post Crypto Market Stabilizes as Tether Recovers, Real Bitcoin Price at $6,450 appeared first on CCN […]
Ripple (XRP) Price Watch: Uptrend Resumes, Next Targets
by Sarah Jenn on October 16, 2018 at 5:01 am
Ripple Price Key Highlights Ripple price recently busted through the short-term descending trend line to signal a reversal. Price might still need to make a pullback in order to gather more bullish momentum to sustain the rally. The 61.8% Fib already seems to be holding, though, and technical indicators are reflecting a pickup in buying... The post Ripple (XRP) Price Watch: Uptrend Resumes, Next Targets appeared first on NewsBTC. […]
Bitcoin (BTC) Price Watch: Triangle Resistance Break and Retest
by Sarah Jenn on October 16, 2018 at 4:46 am
Bitcoin Price Key Highlights Bitcoin price recently surged past its symmetrical triangle resistance to signal that an uptrend is underway. Price found resistance around $7,800 and appears to be pulling back to the broken triangle top. If this area holds as support, price could aim for the Fibonacci extension levels next. Bitcoin price is in... The post Bitcoin (BTC) Price Watch: Triangle Resistance Break and Retest appeared first on NewsBTC. […]
Bitcoin Cash Price Analysis: BCH/USD Consolidating Above $440
by Aayush Jindal on October 16, 2018 at 4:28 am
Key Points Bitcoin cash price broke to the upside, but it declined back below $460 against the US Dollar. There is an ascending channel forming with support at $440 on the hourly chart of the BCH/USD pair (data feed from Kraken). The pair may continue to consolidate and slowly move higher above $450 in the... The post Bitcoin Cash Price Analysis: BCH/USD Consolidating Above $440 appeared first on NewsBTC. […]
Litecoin Price Analysis: ADA Recover from 7 cents as TRX Bulls Aim At 4...
by Dalmas Ngetich on October 16, 2018 at 2:00 am
Unless otherwise, we expect traders to buy on dips in lower time frames all thanks to yesterday’s attempts of higher highs. Supporting this view are breaks above key resistance lines in Cardano while Tron might print above Sep 2018 highs today. Let’s have a look at these charts: EOS Price Analysis Like most coins in... The post Litecoin Price Analysis: ADA Recover from 7 cents as TRX Bulls Aim At 4 cents appeared first on NewsBTC. […]
Bitcoin May Have Just Experienced its Final Shakeout Before a Big Rally
by Joseph Young on October 15, 2018 at 9:30 pm
On October 15, the price of Bitcoin dropped to $6,150, dangerously moving closer to its $6,000 support level which it has well maintained since early August. Due to its low volume, Bitcoin struggled to demonstrate momentum in the mid $6,000 region, failing to hold $6,550, a level it had held fairly well throughout the past The post Bitcoin May Have Just Experienced its Final Shakeout Before a Big Rally appeared first on CCN […]
Bitcoin Price Intraday Analysis: BTC/USD Goes Haywire as USDT Declines
by Yashu Gola on October 15, 2018 at 6:45 pm
Bitcoin on Monday pursued a fake upside action across several exchanges, mainly BitFinex, after stablecoin Tether (USDT) started falling. The BTC/USD responded to the upside action witnessed in the BTC/USDT market. USDT traders started exiting their positions amidst growing concerns about BitFinex’s insolvency and its impact on the coin’s liquidity. The more traders swapped USDT The post Bitcoin Price Intraday Analysis: BTC/USD Goes Haywire as USDT Declines appeared first on CCN […]
Peer Stablecoins are Showing 10% Premium against a Weak Tether
by Davit Babayan on October 15, 2018 at 2:18 pm
A mass exodus from the most popular dollar-pegged stablecoin Tether (USDT) has led to its devaluation against peer stablecoins. USDT on Monday broke away from its historically tight link with the US Dollar to touch 85 cents across multiple crypto-exchanges. As a result, a substantial USDT volume shifted to other cryptocurrencies, including Bitcoin, raising their... The post Peer Stablecoins are Showing 10% Premium against a Weak Tether appeared first on NewsBTC. […]
Bitcoin Explodes to $7,000 within 24 Hours; What Caused the Short-Term...
by Davit Babayan on October 15, 2018 at 11:31 am
After months of bearish action, the Bitcoin price on Monday soared above $7,000 within a matter of hours. BTC/USD bounced from $6,269 earlier today to establish fresh highs towards $6,950, according to CoinMarketCap, adding approximately $9 billion to its market cap. On some exchanges, including Hong Kong-based BitFinex, the pair skyrocketed above $7,000. Weak USDT... The post Bitcoin Explodes to $7,000 within 24 Hours; What Caused the Short-Term Rally? appeared first on NewsBTC. […]
Bitcoin Price Explodes to $7,500 as Tether Loses USD Peg
by Yashu Gola on October 15, 2018 at 8:11 am
Bitcoin price surged 9 percent within hours as Tether started losing its grip on the USD-peg. The BTC/USD pair closed yesterday on a modest 2 percent gain in pennant formation action following the recent drop. Nevertheless, the couple started picking momentum during the early Asian trading session and jumped to as high as 7800-fiat from The post Bitcoin Price Explodes to $7,500 as Tether Loses USD Peg appeared first on CCN […]
Newsflash: Bitcoin Surges to $7,500 on Bitfinex Due to Tether Implosion,...
by Joseph Young on October 15, 2018 at 7:16 am
The price of Bitcoin has surged from $6,300 to $7,500 on Bitfinex, a major cryptocurrency exchange that reportedly operates Tether LLC, a firm that oversees the development of stablecoin Tether (USDT). Bitcoin is being traded with a significant premium on exchanges that have integrated USDT such as OKEx and Huobi, because traders have initiated the The post Newsflash: Bitcoin Surges to $7,500 on Bitfinex Due to Tether Implosion, Real Price $6,700 appeared first on CCN […]
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.