A Complete Guide to Bitcoin Technical Analysis
Latest posts by Dean (see all)
- DBX – The Blockchain For Real World Apps Launches Official ICO - September 25, 2018
- Here’s why you should be excited about ‘blockchain phones’ - September 24, 2018
- Bitcoin price fundamentals: bullish divergences may be pointing towards price increase - September 8, 2018
Latest Price News and Analysis
Did the Mt. Gox Trustee Bitcoin Sell-Off Cause the Crypto Market to Crash?
by Joseph Young on September 25, 2018 at 5:16 pm
On September 25, the Mt. Gox trustee released a document entitled “Announcement on Measures to Secure Interests of Bankruptcy Creditors,” disclosing the sale of over $230 million worth of crypto including Bitcoin and Bitcoin Cash. While it still remains unsure whether the decline in the price of BTC and the valuation of the crypto market The post Did the Mt. Gox Trustee Bitcoin Sell-Off Cause the Crypto Market to Crash? appeared first on CCN […]
Bitcoin Price Intraday Analysis: BTC/USD in Bear Flagpole Formation
by Yashu Gola on September 25, 2018 at 4:21 pm
Bitcoin on Tuesday depreciated more than 3 percent against the US Dollar after reversing from a bear flag top yesterday. The BTC/USD walked the day carrying the prevailing bearish sentiment on its shoulders. The early Asian trading session opened at 6518-fiat and didn’t wait much before dropping below key support areas around 6500-fiat and 6400-fiat. The post Bitcoin Price Intraday Analysis: BTC/USD in Bear Flagpole Formation appeared first on CCN […]
$230 Million: Mt. Gox Trustee Confirms Past Bitcoin Sell-Off
by Josiah Wilmoth on September 25, 2018 at 12:30 pm
Bitcoin investors who have dutifully monitored cryptocurrency wallets associated with defunct bitcoin exchange Mt. Gox for early warnings of a possible sell-off have been proven justified in their paranoia. Mt. Gox Trustee Confirms $230 Million Bitcoin Sale According to a document published on the Mt. Gox website, Nobuaki Kobayashi, the exchange operator’s trustee, sold approximately The post $230 Million: Mt. Gox Trustee Confirms Past Bitcoin Sell-Off appeared first on CCN […]
Bitcoin Price Watch: BTC Broke Key Support, Could Test $6,275
by Aayush Jindal on September 25, 2018 at 8:30 am
Key Points Bitcoin price failed to hold the key support at $6,590 and declined below $6,500 against the US Dollar. There was a break below a bearish pattern with support at $6,550 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair is under pressure and it seems like it could... The post Bitcoin Price Watch: BTC Broke Key Support, Could Test $6,275 appeared first on NewsBTC. […]
Ripple Price Analysis: XRP/USD Under Pressure Below $0.50
by Aayush Jindal on September 25, 2018 at 7:30 am
Key Highlights Ripple price is under a lot of pressure below the $0.5000 level against the US dollar. Yesterday’s highlighted important bearish trend line is intact with resistance at $0.5500 on the hourly chart of the XRP/USD pair (data source from Kraken). The pair could continue to decline towards the $0.4300 and $0.4200 levels in... The post Ripple Price Analysis: XRP/USD Under Pressure Below $0.50 appeared first on NewsBTC. […]
Ethereum Price Analysis: ETH/USD Could Test $212-214
by Aayush Jindal on September 25, 2018 at 6:16 am
Key Highlights ETH price is under a downside correction since it broke the $245 support against the US Dollar. Yesterday’s discussed contracting triangle with support near $242 was breached on the hourly chart of ETH/USD (data feed via Kraken). The pair is likely to extend losses towards the next support at $214 and $212. Ethereum... The post Ethereum Price Analysis: ETH/USD Could Test $212-214 appeared first on NewsBTC. […]
Bitcoin (BTC) Price Watch: Back to Support Yet Again!
by Sarah Jenn on September 25, 2018 at 4:34 am
Bitcoin Price Key Highlights Bitcoin price has formed higher lows and lower highs to trade inside a triangle pattern on its 4-hour time frame. Price got rejected on a test of resistance once more and a move to support appears to be taking place. Technical indicators are suggesting that further declines could be in the... The post Bitcoin (BTC) Price Watch: Back to Support Yet Again! appeared first on NewsBTC. […]
Bitcoin Cash Price Analysis: BCH/USD Extending Downside Correction
by Aayush Jindal on September 25, 2018 at 4:30 am
Key Points Bitcoin cash price declined further and broke the $470 and $460 support levels against the US Dollar. Yesterday’s highlighted contracting triangle with support at $486 was breached on the hourly chart of the BCH/USD pair (data feed from Kraken). The pair is following a bearish path and it could continue to move down... The post Bitcoin Cash Price Analysis: BCH/USD Extending Downside Correction appeared first on NewsBTC. […]
Ethereum Price Analysis: ETH Dips Perfect for Bulls Aiming at $300
by Dalmas Ngetich on September 25, 2018 at 2:00 am
Ethereum prices are slowing down. At the back of last week’s eight percent gains, prices are ranging in lower time frames. Even though yesterday was bearish, we expect prices to pick up and sync in line with last week’s gains. However, for activation of long term bulls, prices must close above $300 or week ending... The post Ethereum Price Analysis: ETH Dips Perfect for Bulls Aiming at $300 appeared first on NewsBTC. […]
Cryptocurrency Prices Highly Correlated to Regulatory Action: Central Bank...
by David Hundeyin on September 25, 2018 at 1:15 am
New research has found that, despite the popular idea that cryptocurrencies operate generally outside the reach of national regulators, regulatory actions still have a huge impact on crypto markets. The research is presented in a report by the Bank for International Settlements (BIS), an organisation owned by 60 of the world’s central banks from countries The post Cryptocurrency Prices Highly Correlated to Regulatory Action: Central Bank Report appeared first on CCN […]
Litecoin Price Analysis: After +90% Correction, Altcoin Bounce Back Is...
by Dalmas Ngetich on September 25, 2018 at 1:00 am
Aside from fundamentals, altcoin prices are retracing. But, as history shows, this is normal. Overly, we retain a bullish preview thanks to last week’s revival. Needless to say, risk off traders can ramp up at spot prices with targets at immediate resistance. Let’s have a look at these charts EOS Price Analysis Bancor, the DEX... The post Litecoin Price Analysis: After +90% Correction, Altcoin Bounce Back Is Inevitable appeared first on NewsBTC. […]
Bitcoin Price Intraday Analysis: BTC/USD Reverses from Bear Flag Top
by Yashu Gola on September 24, 2018 at 5:35 pm
Bitcoin on Monday depreciated more than 2 percent against the US Dollar from its bear flag top from Saturday. The BTC/USD kickstarted Asian trading session by consolidating sideways near-term between 6688-low and 6722-high. The pair in the absence of upside sentiment started losing positions to shorts. As a result, it fell as low as 6580-fiat The post Bitcoin Price Intraday Analysis: BTC/USD Reverses from Bear Flag Top appeared first on CCN […]
Bitcoin Price Watch: BTC Holds Bullish Bias Above $6,550
by Aayush Jindal on September 24, 2018 at 9:28 am
Key Points Bitcoin price is consolidating above the $6,590 and $6,550 support levels against the US Dollar. There is a short-term declining channel in place with resistance at $6,720 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair has to surpass the $6,720 and $6,750 levels to move towards $6,850... The post Bitcoin Price Watch: BTC Holds Bullish Bias Above $6,550 appeared first on NewsBTC. […]
Bitcoin Takes a Breather and Falls Below $6,700, Losses Across the Board
by Joseph Young on September 24, 2018 at 9:23 am
Since September 18, within six days, the crypto market added $34 billion to its valuation. After a massive short-term rally, Bitcoin has retraced slightly, leading other major cryptocurrencies to fall by 3 to 5 percent. While Bitcoin recorded a slight loss of less than 1 percent, Ethereum, Bitcoin Cash, EOS, Stellar, and Litecoin demonstrated losses The post Bitcoin Takes a Breather and Falls Below $6,700, Losses Across the Board appeared first on CCN […]
Cardano Price Analysis: ADA/USD Could Test $0.10
by Aayush Jindal on September 24, 2018 at 8:30 am
Key Highlights ADA price is moving in a positive zone above the $0.0850 level against the US Dollar (tethered). There is a major bullish trend line in place with support at $0.0870 on the hourly chart of the ADA/USD pair (data feed via Bittrex). The pair is likely to move towards $0.1000 and $0.1050 as... The post Cardano Price Analysis: ADA/USD Could Test $0.10 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.