A Complete Guide to Bitcoin Technical Analysis
Latest posts by Dean (see all)
- Esports platform release increases the adoption of MobileGO (MGO) tokens - December 12, 2018
- New Website Makes Bitcasino.io One of the World’s Fastest Bitcoin Casinos - December 5, 2018
- Crypto Derivatives Exchange LXDX Launches Referral Contest - December 3, 2018
Latest Price News and Analysis
Bitcoin Price to Likely Avoid Drop Below $3k as Crypto Loses $14 Billion...
by Joseph Young on December 13, 2018 at 7:22 am
Over the past 48 hours, the Bitcoin price has stabilized at around $3,400 after dropping to a new yearly low at $3,210 on December 7. On a weekly basis, Bitcoin (BTC) is up six percent from $3,210 to $3,400 but the cryptocurrency market has lost $14 billion of its valuation against the U.S. dollar mostly The post Bitcoin Price to Likely Avoid Drop Below $3k as Crypto Loses $14 Billion in 1 Week appeared first on CCN […]
Bitcoin Price Watch: BTC Sellers Targets Fresh Weekly Lows
by Aayush Jindal on December 13, 2018 at 7:00 am
Key Points Bitcoin price failed to break the $3,475 and $3,485 resistance levels and declined against the US Dollar. There was a break below an ascending channel with support at $3,405 on the hourly chart of the BTC/USD pair (data feed from Kraken). The price may continue to move down towards $3,255 or it could... The post Bitcoin Price Watch: BTC Sellers Targets Fresh Weekly Lows appeared first on NewsBTC. […]
Crypto Market Update: EOS, Bitcoin Cash, Tron (TRX), ADA Price Analysis
by Aayush Jindal on December 13, 2018 at 6:00 am
Key Points The total crypto market cap broke the key resistance level near $105.00B. EOS price is up around 3%, but it is still trading below the $2.00 resistance. Bitcoin cash price is currently consolidating just below the $100 resistance area. Tron (TRX) remained confined in a tight range above the $0.0130 support. Cardano (ADA)... The post Crypto Market Update: EOS, Bitcoin Cash, Tron (TRX), ADA Price Analysis appeared first on NewsBTC. […]
Ripple Price Analysis: Risk of Bounce Grows In XRP Above $0.3100
by Aayush Jindal on December 13, 2018 at 5:00 am
Key Highlights Ripple price traded higher recently above the $0.3060 resistance against the US dollar. This week’s important bearish trend line was breached with resistance at $0.2980 on the hourly chart of the XRP/USD pair (data source from Kraken). The pair is likely to climb higher above the $0.3090 and $0.3100 resistances in the near... The post Ripple Price Analysis: Risk of Bounce Grows In XRP Above $0.3100 appeared first on NewsBTC. […]
Ethereum Price Analysis: ETH at Potentially Significant Turning Point
by Aayush Jindal on December 13, 2018 at 4:08 am
Key Highlights ETH price remained in a bearish zone and it is currently trading below $90 against the US Dollar. This week’s followed important bearish trend line is active with resistance at $90 on the hourly chart of ETH/USD (data feed via Kraken). The pair may decline in the short term towards the $85 level... The post Ethereum Price Analysis: ETH at Potentially Significant Turning Point appeared first on NewsBTC. […]
Bitcoin Rises 4.65% as Crypto Market Creeps Toward Breakout
by Yashu Gola on December 12, 2018 at 9:42 pm
The bitcoin price on Wednesday jumped as high as 4.65 percent from its opening price and established an intraday high at $3,488. The BTC/USD rate is now trading at 3440-fiat on the Coinbase exchange, coupled with a notable rise in daily volatility. The pair on December 7 established its yearly low at 3210-fiat, after which The post Bitcoin Rises 4.65% as Crypto Market Creeps Toward Breakout appeared first on CCN […]
Bitcoin Price Watch: BTC Hesitates, But Further Losses Seem Likely
by Aayush Jindal on December 12, 2018 at 7:00 am
Key Points Bitcoin price remains in a bearish zone below the $3,400 and $3,500 resistances against the US Dollar. This week’s followed key bearish trend line is in place with resistance at $3,440 on the hourly chart of the BTC/USD pair (data feed from Kraken). The price remains at a risk of more losses if... The post Bitcoin Price Watch: BTC Hesitates, But Further Losses Seem Likely appeared first on NewsBTC. […]
Crypto Market Update: Litecoin (LTC), Bitcoin Cash, Tron (TRX), ADA Price...
by Aayush Jindal on December 12, 2018 at 6:00 am
Key Points The total crypto market cap extended declines and tested the $102.00B level. Litecoin (LTC) price is struggling below the $30 resistance, with a bearish angle. Bitcoin cash price is currently consolidating near the $100 level. Tron (TRX) is currently flat near the $0.0132 level, with range moves. Cardano (ADA) price declined below the... The post Crypto Market Update: Litecoin (LTC), Bitcoin Cash, Tron (TRX), ADA Price Analysis appeared first on NewsBTC. […]
Ripple Price Analysis: Break Above 100 SMA Could Push XRP Higher
by Aayush Jindal on December 12, 2018 at 5:00 am
Key Highlights Ripple price declined recently and traded towards the $0.2910 level against the US dollar. This week’s followed major bearish trend line is in place with resistance at $0.2975 on the hourly chart of the XRP/USD pair (data source from Kraken). The pair must break the $0.3000 resistance and the 100 hourly simple moving... The post Ripple Price Analysis: Break Above 100 SMA Could Push XRP Higher appeared first on NewsBTC. […]
Ethereum Price Analysis: ETH Breaks Key Support, More Losses Likely
by Aayush Jindal on December 12, 2018 at 4:08 am
Key Highlights ETH price failed to hold the key $88 support and declined recently against the US Dollar. Yesterday’s highlighted major contracting triangle was breached with support at $88 on the hourly chart of ETH/USD (data feed via Kraken). The pair is likely to decline further and upsides remain capped near the $90 and $92... The post Ethereum Price Analysis: ETH Breaks Key Support, More Losses Likely appeared first on NewsBTC. […]
Still the King: Bitcoin Dominance Hits 3-Month High as Crypto Market Limps...
by David Hundeyin on December 11, 2018 at 6:55 pm
Bitcoin’s share of total cryptocurrency market capitalisation is at its highest point in three months, currently standing at about 55.14 percent according to data from CoinMarketCap. Bitcoin Dominance Surges amid Crypto Price Panic The next four high volume cryptocurrencies in order of market volume are XRP with 11.14 percent, ethereum with 8.55 percent, bitcoin cash The post Still the King: Bitcoin Dominance Hits 3-Month High as Crypto Market Limps Toward 2019 appeared first on CCN […]
Is Bitcoin Heading for $3,000? Potential Factors for a Market Recovery
by Rick D. on December 11, 2018 at 5:30 pm
After watching the price of Bitcoin going through its roughest month for seven whole years, many in the space appear to be bracing themselves for a more brutal “crypto winter” than they ever thought possible. One market analyst believes that we could be about to drop further to a new yearly low of $3,000. That... The post Is Bitcoin Heading for $3,000? Potential Factors for a Market Recovery appeared first on NewsBTC. […]
Bitcoin Mining Industry ‘Under Considerable Stress,’ 1.3 Million...
by Josiah Wilmoth on December 11, 2018 at 1:45 pm
For much of the year, the bitcoin mining industry appeared to be impervious to the crypto market downturn, as the flagship cryptocurrency’s hash rate continued to climb even as the BTC price halved — and then halved again. In recent weeks, however, cracks have begun to form in this sector as well. Bitcoin Hash Rate The post Bitcoin Mining Industry ‘Under Considerable Stress,’ 1.3 Million Devices Switched Off appeared first on CCN […]
Bitcoin Price Watch: BTC Facing Uphill Task Near $3,500
by Aayush Jindal on December 11, 2018 at 7:00 am
Key Points Bitcoin price is under pressure below the $3,500 and $3,520 resistance levels against the US Dollar. Yesterday’s highlighted crucial bearish trend line is intact with resistance at $3,520 on the hourly chart of the BTC/USD pair (data feed from Kraken). The price may continue to find a strong resistance near the $3,500 and... The post Bitcoin Price Watch: BTC Facing Uphill Task Near $3,500 appeared first on NewsBTC. […]
Bitcoin Recovery Weakens as Price Drops 4.4%, Dead Cat Bounce?
by Yashu Gola on December 10, 2018 at 7:27 pm
The gains Bitcoin made during the Friday and weekend trading session fizzled at the beginning of this week. The digital currency’s recovery lost steam after establishing an intraday high at 3640-fiat, now thrice in December. It dropped as much as 4.4% on Monday, confirming a weak bull sentiment near the said resistance area. At the The post Bitcoin Recovery Weakens as Price Drops 4.4%, Dead Cat Bounce? 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.