A Complete Guide to Bitcoin Technical Analysis
- Your Guide to the Tax Rules Around Day Trading Crypto - March 23, 2020
- MyFX Markets Crypto Margin Trading - February 28, 2020
- Estonian Company ITEZ Enables BTC Trading Via Visa/MasterCard Credit Cards - January 24, 2020
Latest Price News and Analysis
The U.S. Dollar is Dying, Buy Bitcoin: “Rich Dad Poor Dad” Author
by Nick Chong on April 5, 2020 at 8:00 am
The past few weeks have undoubtedly been rough for crypto; from the February highs, Bitcoin has fallen 36%, reaching a low of $3,800 in March. Robert Kiyosaki, the author of the popular financial book “Rich Dad Poor Dad,” sees no reason to fear, though. In fact, the well-known investor recently went as far as to...
Bitcoin Showing Signs of Weakness But 100 SMA Can Trigger New Rally
by Aayush Jindal on April 5, 2020 at 6:08 am
Bitcoin is struggling to gain momentum above the key $7,000 resistance against the US Dollar. BTC is likely to surge past $7,000 as long as it is above $6,400 and the 100 SMA (H4). Bitcoin price is currently showing a few bearish signs below the $7,000 resistance area. There is a strong support forming above...
Ethereum Breaking This Crucial Support Could Spark a Sharp Decline
by Aayush Jindal on April 5, 2020 at 4:48 am
Ethereum is struggling to gain bullish momentum above the $145 resistance against the US Dollar, similar to bitcoin. ETH price must stay above the $140 support area to remain in an uptrend. ETH price is currently facing a strong resistance near $145 and $150 against the US Dollar. There is a crucial support forming near...
What’s Next For Bitcoin After Brutal Rejection At Key $7,000 Price Point?
by Nick Chong on April 4, 2020 at 11:00 pm
Just two hours ago, Bitcoin started to rally after trading at $6,700 for most of Saturday morning and afternoon, rallying as high as $7,020 in a vertical move that brought the asset 4%. But, as fast as the cryptocurrency rallied, it was rejected, returning to where it began just minutes later — a loss for...
Bitcoin Holds Gains but Technical Patterns Hint It Will Fall to $5K
by Yashu Gola on April 4, 2020 at 11:39 am
Bitcoin has surged by up to 24 percent ahead of closing the week despite the Coronavirus-induced global market sell-off. Nevertheless, the benchmark cryptocurrency could end up losing a large chunk of its gains heading into the new seven-day timeframe. That is because of two bearish indicators. As Bitcoin trends upward, it is leaving behind a...
Analyst Who Called Bitcoin’s $3,000 2018 Bottom Thinks This Is Next
by Nick Chong on April 4, 2020 at 2:03 am
Over the past three weeks, since Bitcoin hit $3,800 in a capitulation event, the cryptocurrency market has mounted an extremely strong recovery. In fact, just the other day, the cryptocurrency shot some 10% higher within a few hours’ time, rallying from $6,600 to $7,200 in a strong upward swing that liquidated dozens of millions worth...
Institutional Trade Volume Hits Local High as Bitcoin Jumps over $7,000
by Yashu Gola on April 3, 2020 at 12:00 pm
Futures linked to the bitcoin market experienced a spike in their volumes this Thursday as the cryptocurrency’s spot rate broke above $7,000. Crypto statist Skew highlighted that trading activity on CME’s and Bakkt’s bitcoin derivatives marketplaces surged by up to $595 million and $27 million, respectively. The move uphill left CME’s open interest as high...
Here’s Why Bitcoin Could Correct To $6.5K Before A Fresh Rally
by Aayush Jindal on April 3, 2020 at 5:28 am
Bitcoin surged above the $7,000 resistance and reached the $7,200 bullish target against the US Dollar. BTC price is currently correcting lower and it could test the $6,500 support area. Bitcoin rallied significantly above the $6,800 and $7,000 resistance levels against the US Dollar. The price tested the $7,200 target (as discussed yesterday) before correcting...
Technicals Point Towards Ripple (XRP) Rally To $0.20 Despite Some...
by Aayush Jindal on April 3, 2020 at 4:18 am
Ripple is trading in a positive zone above the $0.1750 region against the US Dollar. XRP price is likely to accelerate gains in the near term and it could test $0.1880 and $0.2000. Ripple price is slowly gaining bullish momentum above $0.1720 and $0.1750 against the US dollar. There was a sharp spike recently towards...
Ethereum Gearing For Another Lift-Off to $155: Rally Isn’t Over Yet
by Aayush Jindal on April 3, 2020 at 3:08 am
Ethereum rallied recently above the $135 and $140 resistance levels against the US Dollar. ETH price remains well supported and it could rise again towards $150 and $155. Ethereum is showing a lot of positive sign and it is trading above $140 against the US Dollar. The price tested the $150 resistance and corrected lower...
Bitcoin Price Update for October 2, 2019
on December 2, 2019 at 4:58 pm
Below is a recap we did on Bitcoin's performance throughout September 2019. It had its ups and downs and for more details - read all about it in our article!
Altcoin Market Update for October 2, 2019
on December 2, 2019 at 4:57 pm
Our first altcoin market update from October 2019 - here we do a recap of the altcoin performance from our watchlist and discuss where they might head in the near future.
Bitcoin Price Update for September 25, 2019
on November 27, 2019 at 7:47 pm
This is our latest Bitcoin price update from 25tth September 2019 where we take a look at how Bitcoin has been performing in the markets. We also provide our commentary on its state so read more about it here!
Altcoin Market Update for September 25, 2019
on November 27, 2019 at 7:46 pm
In our Altcoin market update, we take a look at what has influenced the altcoins on our watchlist the most in terms of price and market movement, and we analyze where Ether, Monero, Ripple, and others stand at the moment. Take a look!
Altcoin Market Update for September 18, 2019
on November 25, 2019 at 1:57 pm
Our Altcoin market update from 18th September 2019 is up - in it, we take a look at the latest price fluctuations and trends that influenced some of our top altcoin movements.
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.