A Complete Guide to Bitcoin Technical Analysis
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Latest Price News and Analysis
- TA: Bitcoin Surges To $40K, Why BTC Could Rally Furtherby Aayush Jindal on July 26, 2021 at 3:48 am
Bitcoin price started a strong upward move above the $35,000 resistance against the US Dollar. BTC is showing positive signs and it could rally further above $40,000. Bitcoin started a strong increase above the $33,000 and $35,000 resistance levels. The price is now trading well above $35,000 and the 100 hourly simple moving average. There is a key bullish trend line forming with support near $35,500 with resistance near $31,250 on the hourly chart of the BTC/USD pair (data feed from Kraken). […]
- TA: Ethereum Recovers Sharply, Why ETH Could Continue Higher above $2Kby Aayush Jindal on July 22, 2021 at 5:08 am
Ethereum started an upside correction above the $1,850 resistance against the US Dollar. ETH price is likely to continue higher if there is a close above the $2,000 resistance. Ethereum started a decent upward move above the $1,850 and $1,950 resistance levels. The price is now trading well above $1,900 and the 100 hourly simple moving average. There is a key bullish trend line forming with support near $1,960 on the hourly chart of ETH/USD (data feed via Kraken). The pair is likely to rise […]
- TA: Bitcoin Trim Losses, Why Bulls Need To Overcome $32.5K For More Upsidesby Aayush Jindal on July 22, 2021 at 3:08 am
Bitcoin price started a strong upward move from the $29,250 support zone against the US Dollar. BTC must settle above $32,000 and $32,500 for more upsides in the near term. Bitcoin started a strong increase above the $30,000 and $31,000 resistance levels. The price is now trading well above $31,000 and the 100 hourly simple moving average. There was a break above a major bearish trend line with resistance near $31,250 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair […]
- TA: Ethereum Starts Recovery, Why ETH Could Resume Its Declineby Aayush Jindal on July 21, 2021 at 5:08 am
Ethereum started an upside correction from the $1,720 zone against the US Dollar. ETH price could correct further higher, but upsides might be capped near $1,850. Ethereum formed a base above the $1,720 support zone before starting an upside correction. The price is still trading well below the $1,850 resistance and the 100 hourly simple moving average. There was a break above a key bearish trend line with resistance near $1,790 on the hourly chart of ETH/USD (data feed via Kraken). The pair is […]
- TA: Bitcoin Bears Lose Strength, What Could Trigger A Decent Recoveryby Aayush Jindal on July 21, 2021 at 3:08 am
Bitcoin price extended its decline below the $30,000 support against the US Dollar. BTC is finding bids near $29,250 and it might attempt an upside correction. Bitcoin is following a bearish path and it broke the key $30,000 support zone. The price is now trading well below $31,000 and the 100 hourly simple moving average. There is a key bearish trend line forming with resistance near $31,300 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair could start a decent upside […]
- Bitcoin Crashes Below $30,000, Bear Market Or Bullish Setup?by Best Owie on July 20, 2021 at 5:00 pm
Bitcoin has finally crashed below $30,000 for the first time in a month after the digital asset had recovered above this point following the crash to the $28,000 range in the last month. Market volatility levels have continued to remain low while the digital asset price continues to suffer. Market sentiments seem to remain in the extreme fear range as investors hold off putting more money into digital assets. Bitcoin continues to show bearish tendencies as, despite best efforts, bulls have not […]
- TA: Ethereum Breaks Key Support, Why ETH Could Tumble To $1,500by Aayush Jindal on July 20, 2021 at 5:08 am
Ethereum is gaining bearish momentum below $1,800 against the US Dollar. ETH price is likely to continue lower and it might even test the $1,500 level in the near term. Ethereum started a fresh decline and it even traded below the $1,850 support zone. The price is still trading well below the $1,800 resistance and the 100 hourly simple moving average. There is a major bearish trend line forming with resistance near $1,820 on the hourly chart of ETH/USD (data feed via Kraken). The pair is likely […]
- TA: Bitcoin Grinds Lower, Why BTC Bears Aim Larger Declineby Aayush Jindal on July 20, 2021 at 3:08 am
Bitcoin price extended its decline below the $31,200 support against the US Dollar. BTC remains at a risk of a larger decline below the $30,000 support zone. Bitcoin remains in a bearish zone and it even broke the $31,000 support zone. The price is now trading well below $32,000 and the 100 hourly simple moving average. There is a major bearish trend line forming with resistance near $31,550 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair is likely to accelerate lower […]
- TA: Why Ethereum (ETH) Topside Bias Vulnerable Unless It Surges Past $2Kby Aayush Jindal on July 19, 2021 at 5:58 am
Ethereum is facing an uphill task near the $2,000 zone against the US Dollar. ETH price remains at a risk of a larger decline below the $1,800 support zone. Ethereum started a fresh decline after it failed to surpass the $2,000 resistance zone. The price is still trading well below the $2,000 resistance and the 100 hourly simple moving average. There is a key bearish trend line forming with resistance near $1,975 on the hourly chart of ETH/USD (data feed via Kraken). The pair could accelerate […]
- TA: Bitcoin Remains At Risk, Why BTC Could Nosedive Below $30Kby Aayush Jindal on July 19, 2021 at 3:08 am
Bitcoin price is trading in a bearish zone below $33,000 against the US Dollar. BTC could extend its decline and it could even dive below $30,000. Bitcoin remains in a bearish zone, but it is holding the $31,000 support zone. The price is now trading well below $32,500 and the 100 hourly simple moving average. There is a key bearish trend line forming with resistance near $31,850 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair must settle above $32,000 and the 100 […]
- A new postby afbitcoins on February 12, 2019 at 10:26 pm
I just looked at my last blog post. It was written during the last bubble type spike up in progress (quite a while ago now, over a year?). With the price at about 7 or 8K I predicted at that time it might spike up to 13k (in US dollars). It was obvious to just
- Bitcoin segwitby afbitcoins on November 3, 2017 at 1:20 am
So bitcoin has broken $7000? Or has it? What is bitcoin? Is it the one with ticker symbol btc that everyone calls bitcoin? Do you remember when Satoshi Nakamoto published plans for the future scaling of bitcoin and said ” It would be goddamn brilliant to segregate the witness data the fuck out of the
- Crypto roundupby afbitcoins on June 1, 2017 at 11:47 pm
Measured against USDT (which is a proxy for US$ on the Poloniex exchange), on a 1 day chart we can see the explosive rise of Dash, which particularly in March this year, outperformed almost every other crypto including bitcoin as it spiked above $100 for the first time. Since then Dash has climbed even higher
- To the moooonby afbitcoins on May 24, 2017 at 10:07 am
With no analysis just a look at bitcoin on linear price scale. All time high smashed On another positive note for bitcoin agreement seems to have been reached on how to scale bitcoin, (spoiler alert its segwit and a 2M block) http://www.coindesk.com/bitcoins-new-scaling-agreement-reaction/ This is despite bitcoin market dominance falling below 50%! Heres Dash versus the
- Cryptomaniaby afbitcoins on May 4, 2017 at 8:48 pm
I think I’ve used this title for a blog post before, but meh, here it is again, with different content. This chart is the combined market cap of all the crypto currencies, ie Bitcoin, Etherium, Ripple, Litecoin, Dash and all the rest Since bitcoin is the biggest crypto it looks similar to a bitcoin chart
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.