A Complete Guide to Bitcoin Technical Analysis
Latest posts by Dean (see all)
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- Kepler Technologies Crypto Trading Terminal Kattana Simplifies Trading with an Access to Multiple Crypto Exchanges and Covering All Crypto Traders’ Flow in One App - December 16, 2018
Latest Price News and Analysis
Bitcoin Price Weekly Analysis: BTC Could Accelerate Gains Above $3,850
by Aayush Jindal on January 20, 2019 at 6:00 am
Bitcoin price formed a solid support near the $3,560 level and moved higher against the US Dollar. There is a crucial bearish trend line in place with resistance near $3,850 on the 4-hours chart of the BTC/USD pair (data feed from Kraken). The pair could continue to move higher towards the $3,850 and $4,000 levels... The post Bitcoin Price Weekly Analysis: BTC Could Accelerate Gains Above $3,850 appeared first on NewsBTC. […]
Ethereum Price Weekly Analysis: ETH Facing Uphill Task Near $128
by Aayush Jindal on January 20, 2019 at 4:08 am
ETH price faced a strong resistance near the $127 and $128 levels recently against the US Dollar. There is a major bearish trend line formed with resistance at $125 on the 4-hours chart of ETH/USD (data feed via Kraken). The pair must break the $125, $127 and $128 resistance levels to move into a positive... The post Ethereum Price Weekly Analysis: ETH Facing Uphill Task Near $128 appeared first on NewsBTC. […]
Tron Price Analysis: TRX Underperforming 24 Hours After NiTron
by Dalmas Ngetich on January 19, 2019 at 5:00 pm
Tron price drops 2.1 percent in the last day Trust Wallet will facilitate BTT airdrop Average daily transaction volumes steady at 29 million A day after NiTron is down 2.1 percent and underperforming against BTC. Nonetheless, TRX bulls are in charge, and we expect TRX prices to re-test 4 cents by the end of Jan... The post Tron Price Analysis: TRX Underperforming 24 Hours After NiTron appeared first on NewsBTC. […]
Bitcoin Price Analysis: BTC Volumes Shrink 22% From Jan 10
by Dalmas Ngetich on January 18, 2019 at 6:00 pm
Bitcoin Price in a $300 range mode ShapeShift bombarded with US DoJ subpoenas in Q4 2018 Transaction volumes dip, moving averages slide from 18k to 14k in four days Participation levels are low, and with drying transactional volumes, BTC prices are ranging. However, with a flurry of subpoenas, exchanges are wary. All in all, we... The post Bitcoin Price Analysis: BTC Volumes Shrink 22% From Jan 10 appeared first on NewsBTC. […]
Ripple Price Analysis: XRP Consolidates For the Eighth Straight Day
by Dalmas Ngetich on January 18, 2019 at 5:23 pm
Ripple prices in a 2 cents trade range below 34 cents Mercury FX demonstrates the power of XRP Prices ranging as daily average trading volumes drop t0 23 million—streams from BitFinex Although the path of least resistance ought to be northwards, sellers are currently pinning down bulls. Nonetheless, our XRP/USD trade plan is upbeat, and... The post Ripple Price Analysis: XRP Consolidates For the Eighth Straight Day appeared first on NewsBTC. […]
Bitcoin Price Watch: BTC Signaling Decent Comeback Above $3,700
by Aayush Jindal on January 18, 2019 at 6:45 am
Bitcoin price declined again and tested the $3,550 support area before recovering against the US Dollar. There was a break above a major bearish trend line with resistance at $3,585 on the hourly chart of the BTC/USD pair (data feed from Kraken). The price is currently showing positive signs above the $3,600 support level, with... The post Bitcoin Price Watch: BTC Signaling Decent Comeback Above $3,700 appeared first on NewsBTC. […]
Crypto Market Update: EOS, Bitcoin Cash, Tron (TRX), IOTA Price Analysis
by Aayush Jindal on January 18, 2019 at 6:00 am
The total crypto market cap broke a major resistance near the $117.00B level. EOS price broke the $2.50 resistance and it may rise towards the $2.62 level. Bitcoin cash price jumped above the $130 level and it might head towards the $135 resistance. Tron (TRX) price is up more than 3% and it seems like... The post Crypto Market Update: EOS, Bitcoin Cash, Tron (TRX), IOTA Price Analysis appeared first on NewsBTC. […]
Ripple Price Analysis: XRP Likely Preparing For The Next Ride
by Aayush Jindal on January 18, 2019 at 5:00 am
Ripple price is trading in a tight range above the $0.3240 and $0.3200 support levels against the US dollar. There is a major contracting triangle formed with resistance at $0.3290 on the hourly chart of the XRP/USD pair (data source from Kraken). The pair is likely to make the next move either above $0.3300 or... The post Ripple Price Analysis: XRP Likely Preparing For The Next Ride appeared first on NewsBTC. […]
Ethereum Price Analysis: ETH Could Rally If $116 Support Holds
by Aayush Jindal on January 18, 2019 at 4:08 am
ETH price is currently consolidating above the $116 and $117 support levels against the US Dollar. Yesterday’s highlighted key bearish trend line is active with resistance at $126 on the hourly chart of ETH/USD (data feed via Kraken). The pair may gain bullish momentum sooner or later as long as it is above the $116... The post Ethereum Price Analysis: ETH Could Rally If $116 Support Holds appeared first on NewsBTC. […]
Bitcoin Price Analysis: BTC Cap Up $700 million From $3,700 Support
by Dalmas Ngetich on January 17, 2019 at 7:00 pm
Bitcoin price ranging, up $700 million in the last 10 Hours Federal Reserve Bank of St Louis research confirms there is BTC demand Transactional volumes low. Drops from 18k to 15k in three days Market participants are optimistic and for good reasons. Candlestick arrangement points at bulls, and as prices swing between Jan 14 high... The post Bitcoin Price Analysis: BTC Cap Up $700 million From $3,700 Support appeared first on NewsBTC. […]
Analyst: 2019 a Year of Accumulation For Bitcoin, Recovery by Year’s End
by Joseph Young on January 16, 2019 at 2:36 pm
In the past 24 hours, the crypto market has recovered from $120 to $123 billion as the Bitcoin price avoided a further drop below the $3,600 mark. Ethereum has also been able to rebound relatively quickly from the delay of the Constantinople hard fork, which initially caused a 10 percent drop from $130 to $116. The post Analyst: 2019 a Year of Accumulation For Bitcoin, Recovery by Year’s End appeared first on CCN […]
Ripple (XRP) Market Update for Jan 14, 2019
on January 16, 2019 at 8:42 am
The fact that XRPBTC continues to hover above the 0.0000xxxx level despite the move below the ascending triangle uptrend line late last week shows just how strong the bulls remain […]
Bitcoin (BTC/USD) Price Update for January 15th, 2019
on January 15, 2019 at 6:39 pm
The bitcoin markets have held up surprisingly well over the past 24 hours in the face of still bearish technicals and still anemic network fundamentals... […]
Could Bitcoin Initiate a New Bull Cycle by 2019? One Trader Thinks So
by Joseph Young on January 15, 2019 at 3:53 pm
In the last 24 hours, the cryptocurrency market recovered by $4 billion as the Bitcoin price rebounded above $3,700. Several major crypto assets in the likes of Ethereum and TRON have recorded large gains on the day, rising by more than three percent against Bitcoin. Even if the price of Bitcoin and other crypto assets The post Could Bitcoin Initiate a New Bull Cycle by 2019? One Trader Thinks So appeared first on CCN […]
Following $5 Billion Crypto Drop, Traders See Weakness in Bitcoin
by Joseph Young on January 14, 2019 at 2:24 pm
On January 13, the crypto market initiated an intense sell-off as the Bitcoin price fell below the $3,500 mark. The weakness in the short-term price trend of BTC led the market to demonstrate volatility on the downside. More than $5 billion was wiped out of the crypto market and major assets like Ethereum recorded a The post Following $5 Billion Crypto Drop, Traders See Weakness in Bitcoin 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.