Sep 19, · In terms of technical analysis, an individual needs to focus on the price of the bitcoin. To focus on the coin’s price, the individual needs to use the technical indicators and must not consider the outside variables contributing to the price. The main thing that one needs to learn is to remove emotions or feelings while making a decision. Technical analysis works for Bitcoin, but first, you have to learn the trade levels regarding the supply and demand Bitcoin. Additionally, there is something called level support which involves price level. In simple terms, this means there is a willingness of many traders to buy Bitcoin with the belief that is . Bitcoin technical analysis is simply technical analysis of the cryptocurrency Bitcoin. Technical analysis involves analyzing different trends in the market based on different technical indicators. Indicators can almost be anything but the most common is moving average and Bollinger bands. Why should you care about technical analysis?
Technical analysis of bitcoin tradingTechnical Analysis of Bitcoin / U.S. Dollar (BITSTAMP:BTCUSD) — TradingView
The question now for market participants is how high the cryptocurrency could go and, conversely, which levels could act as support levels or potential entry points for investors looking to buy.
In such a situation, Fibonacci extensions and retracements can help identify key price levels, according to William Noble, a chief market technician at Token Metrics.
The Fibonacci extension for an uptrend is drawn by joining three points — the lowest price or the point of origin of the bull trend, a major price high, and the low of subsequent pullback bounce. That will generate Fibonacci extension levels of Meanwhile, the Fibonacci retracement on an uptrend is drawn by connecting the low and high points to get These percentages are based on the Fibonacci sequence — a series of numbers beginning from 0 and arranged so that any particular number of the series is simply the summation of the previous two numbers.
For instance, 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, , , and so on. A closer look at the sequence tells us that every number gets closer and closer to Further, every number gets closer to the Meanwhile, working the sequence in the reverse order gives extension levels.
The challenge lies in picking the most relevant price points while drawing Fibonacci extension and retracement levels. Fibonacci tools served the purpose in when bitcoin traded in uncharted territory for 10 months. Many analysts are expecting bitcoin to chart a like meteoric rally in However, Noble believes it could play out in the coins associated with decentralized finance DeFi.
When asked about the level to watch for during potential pullbacks, Noble said the Newbies and amateur traders often misread the above or overbought reading on the day RSI as a sign of bearish reversal. In reality, the indicator can and does stay overbought longer than sellers can stay solvent, to paraphrase economist John Maynard Keynes.
But, if your investment strategy is more about buying and selling for short term to medium term you must involve technical analysis into your trading strategy. Here, we mean the best in terms of most comprehensive analysis in different ways.
The best doesnt mean the most positive, or the highest predictions. Tradingview is the place to be if you are about to dive deep into the best Bitcoin technical analysis for and forward.
Investtech makes automatic technical analysis very frequently. Its a great resource if you want to look.
Since they are automatic they are very reproducible and no emotions or human mistakes are involved. It can be a great source if you want to a reliable source that always deliver and also deliver based on the same predetermined criteria.
The weakness is, of course, that it might not adopt the technical analysis for the current market situation, day to day. Investtech deliver their Bitcoin technical analysis in three different formats, based on three different terms, as you can see in the bullet list below. FXempire updates their Bitcoin technical analysis for on a weekly basis. FXempire is a huge player in the online trading industry.
They have a lot of services regarding trading and cryptocurrency trading. Below, you can see how you browse over to crypto and bitcoin technical analysis from their header menu.