A Complete Guide to Bitcoin Technical Analysis
Warning: md5() expects parameter 1 to be string, array given in /home/thefivyh/public_html/cryptorials.io/wp-content/plugins/feedzy-rss-feeds/includes/abstract/feedzy-rss-feeds-admin-abstract.php on line 1133
- How to follow a logical path through selecting the best cloud mining services in 2021? - July 15, 2021
- Staking VS other ways of earning on cryptocurrencies – what makes most sense - June 14, 2021
- Introducing SafeHamsters - May 27, 2021
Latest Price News and Analysis
- TA: Ethereum Could Follow Bitcoin, Why ETH Could Rally To $4Kby Aayush Jindal on October 20, 2021 at 5:08 am
Ethereum is consolidating above the $3,800 support zone against the US Dollar. ETH must clear the $3,900 and $3,950 resistance levels to continue higher in the near term. Ethereum started a fresh increase above the $3,800 and $3,820 resistance levels. The price is now trading above $3,800 and the 100 hourly simple moving average. There was a break above a key contracting triangle forming with resistance near $3,820 on the hourly chart of ETH/USD (data feed via Kraken). The pair could start a […]
- TA: Bitcoin Breaks Key Resistance, Why BTC Could Extend Rallyby Aayush Jindal on October 20, 2021 at 3:08 am
Bitcoin gained pace above the $63,000 resistance against the US Dollar. BTC is rising and it may soon clear the $65,000 resistance in the near term. Bitcoin is showing positive signs above the $61,000 and $62,500 levels. The price is now trading above $62,500 and the 100 hourly simple moving average. There is a key bullish trend line forming with support near $62,800 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair could extend rally and it might even clear the $65,000 […]
- TA: Ethereum Breaking This Barrier Could Spark a Significant Surgeby Aayush Jindal on October 19, 2021 at 5:08 am
Ethereum remained supported above the $3,650 zone against the US Dollar. ETH must clear the $3,850 and $3,900 resistance levels to continue higher in the near term. Ethereum started a fresh increase above the $3,700 and $3,750 resistance levels. The price is now trading above $3,800 and the 100 hourly simple moving average. There is a major contracting triangle forming with resistance near $3,840 on the hourly chart of ETH/USD (data feed via Kraken). The pair could start a fresh rally if it […]
- TA: Bitcoin Consolidates Gain: What Could Trigger Fresh Rallyby Aayush Jindal on October 19, 2021 at 3:08 am
Bitcoin is showing positive signs above the $61,200 support against the US Dollar. BTC could start a fresh rally if it clears the $62,200 resistance zone. Bitcoin is trading in a positive zone above the $60,000 and $61,200 levels. The price is now trading above $61,200 and the 100 hourly simple moving average. There is a major bullish trend line forming with support near $61,000 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair could start a fresh rally and it might rise […]
- Cardano Loses 3rd Spot On Crypto Top 10, Why It May Drop Even Moreby Best Owie on October 18, 2021 at 11:00 pm
Cardano has now lost its spot at the 3rd place on the crypto top 10 as its price had refused to move in accordance with the broader crypto market. While other altcoins had rallied alongside bitcoin, ADA had remained mostly stagnant. Despite the hype created around the project when smart contracts capability was launched last month, support has dwindled for the asset. Its race above $3 had seen it overtake Binance native token BNB to clench the top 3 spot. But ADA has once again surrendered this […]
- Bitcoin Price Smashes Record For Highest Weekly Candle Close Everby Tony Spilotro on October 18, 2021 at 7:28 pm
Bitcoin price is back at levels from earlier in the year, but has yet to set a new all-time high. Last night’s weekly candle close still came with a new broken record for price: the highest weekly candle close in the cryptocurrency’s history. Will the bullish weekly close lead to new highs? If so, will this be the culmination of the bull run? And if not, does that mean a bear market instead? A new record has been set | Source: BTCUSD on TradingView.com Bitcoin Price Sets New Record For […]
- TA: Ethereum Eyes Key Upside Break, Why Bulls Could Aim Larger Rallyby Aayush Jindal on October 18, 2021 at 5:08 am
Ethereum was able to clear the $3,800 resistance zone against the US Dollar. However, ETH price failed to gain strength above $3,900 and it is now consolidating gains. Ethereum started a fresh increase above the $3,750 and $3,800 resistance levels. The price is now trading above $3,800 and the 100 hourly simple moving average. There was a break above a key bearish trend line with resistance near $3,840 on the hourly chart of ETH/USD (data feed via Kraken). The pair could extend its rally if it […]
- TA: Bitcoin Gearing For Lift-Off to $65K: Rally Isn’t Over Yetby Aayush Jindal on October 18, 2021 at 3:08 am
Bitcoin is gaining pace above the $60,000 zone against the US Dollar. BTC could accelerate higher towards the $65,000 resistance zone in the near term. Bitcoin started a fresh increase and it broke the $60,000 level. The price is now trading above $62,000 and the 100 hourly simple moving average. There was a break above a major bearish trend line with resistance near $60,850 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair could continue higher towards the $63,500 level […]
- Bitcoin “Supertrend” Begins As Buy Signals Stack On All Major...by Tony Spilotro on October 15, 2021 at 8:00 pm
Bitcoin price is above $60,000 and bears are in disbelief. But they shouldn’t be, as bulls have long been in control of the trend. It had only been lower timeframes that had flipped bearish, while the most dominant trend had remained up. According to the Supertrend, all of the most important timeframes have since flipped bullish, with buy signals appearing across the board. Here is a closer look at what the tool says, the only remaining timeframe without a buy signal, and more information on […]
- TA: Ethereum Outperforms Bitcoin, What Could Extend Gains Above $4Kby Aayush Jindal on October 15, 2021 at 5:18 am
Ethereum gained pace above the $3,700 resistance zone against the US Dollar. ETH price is showing positive signs and it could even surge above $4,000. Ethereum started a fresh increase above the $3,650 and $3,750 resistance levels. The price is now trading above $3,800 and the 100 hourly simple moving average. There is a major bullish trend line forming with support near $3,800 on the hourly chart of ETH/USD (data feed via Kraken). The pair could extend its rally if there is a clear break above […]
- VideoPress Remakeby Tino Barreiro on October 11, 2021 at 9:51 pm
Introducing the new VideoPress. Still the finest video service for WordPress—now even better. Video is one of the most powerful tools on the web. It can spark ideas, emotions, conversations, sales, and much more. VideoPress already offers people the ability to upload and serve hours of high-quality video flawlessly around …
- Behind the Scenes: The Tech Stack of the WordPress.com Growth Summitby Mindy Postoff on October 7, 2021 at 3:00 pm
If you enjoy building sites with WordPress, tinkering around with design and functionality, check out a behind-the-scenes look at how we built our Growth Summit site!
- Celebrating UK Black History Month: Learning Resources, a Read & Watch...by Cheri Lucas Rowlands on October 4, 2021 at 4:12 pm
October is Black History Month in the UK. We asked colleagues across WordPress.com for their recommendations for deeper learning and participation this month — and the rest of the year.
- Will We See You Tomorrow at WordCamp US 2021?by Donna Cavalier on September 30, 2021 at 6:31 pm
Let's meet at WCUS 2021! We'll be there and we hope to see you there as well!
- A Successful Blogger on Making the Switchby Donna Cavalier on September 27, 2021 at 2:14 pm
For Kyla Marie Charles, switching to WordPress.com opened up possibilities for her website and brand that she never thought was possible.
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.