Bitcoin Trading Guide for Intermediate Crypto Traders This bitcoin chart analysis guide is built to be your one-stop-shop tutorial for intermediate crypto trading. Crypto trading seems complicated at first glance. Fortunately, it’s not nearly as perplexing as you think. Once you learn how to read charts and perform basic technical analysis, it all starts to. BTC dominance has been breaking all resistance even when BTC broke ATH altcoins are still struggling. traditional investors joined the Crypto Market and since then they are controlling the Bitcoin price which resulted in huge depreciation to ALTs Price and Market Cap. some good project did have some nice runs but 80% ALTs are still underwater. May 31, · As with candlestick patterns, chart patterns should be used in confluence with other methods, such as indicators or trend analysis, for better results. Top 8 Chart Patterns for Crypto Trading. There are too many chart patterns to list them all here, so we will just be picking some that have a relatively high success rate.
Trading bitcoin chartsBTCUSD — Bitcoin Chart and Price — TradingView
At first, you will see more success by following the path of established traders that have practiced this skill for years. The great news is that once you understand how to trade Bitcoin , you can trade a vast array of assets classes. Step one on your journey to becoming the ultimate Bitcoin trader is to get familiar with the basics of trading. You will need to familiarize yourself with the key theories and terminology used today. You will also want to have a firm understanding of different chart types and pattern recognition.
Luckily, in terms of trading, market history has a tendency to repeat itself. Consequently, analysis allows you to recognize these trends and use them to make an informed decision on the market movements of the future. The Dow Theory is a strategy developed by Charles H. The trio went on to develop the Dow Jones Industrial Average in The Dow Theory provides you with valuable insight into market movements.
It states that the market price takes everything into consideration. Every factor including outside developments and all prior, current, and future details combine to establish the market value of an asset. This theory means that as an experienced trader you must be able to monitor multiple variables in the market.
You will learn to understand the current, past, and future demands of your asset community. This learning must come from a constant gathering of information and market news. You should always pay special attention to any future regulations. The Dow Theory means that all price movements are not random at all, quite the opposite. Price movements follow larger trends. These trends can be broken into two categories — short and long term trends. This strategy requires you to utilize technical indicators and ignore outside variables contributing to the price.
In this way, you are able to remove emotion from your decisions. Main Movement — The main movement is the major trend currently underway. This trend is going to encompass years of market activity. For example, the main movement in Bitcoin is bullish if you look at the complete trading history of the asset. Medium Swing — A medium swing is a secondary market reaction.
This reaction can last for up to three months. Medium swings include price retraces. Short Swing — Short swings are daily price fluctuations. A short swing can last up to a month in some scenarios.
These minor movements occur due to market speculation. As such, Bitcoin experiences short swings throughout the week on a regular basis. The accumulation phase occurs when knowledgeable investors receive some sort of valuable information that relates to them a significant change in market conditions.
This information could include knowledge acquired from inside the company or from other avenues that could affect the market. In either case, the results are the same. These investors begin buying or selling their assets in a bid to position for the news. Notably, this phase is difficult to detect as the market movements are minimal. The reason for the miniscule market adjustments is that the majority of investors are not privy to the information the first movers received. Since only a small number of people have access to this information, these sales go unnoticed amongst the daily trading volume.
Absorption occurs when the general public begins to take notice of the market trend emerging. This participation leads to more market activity. Consequently, more investors jump on board the movement.
Eventually, this scenario leads to speculation fueled by FOMO fear of missing out. If the market is tanking, investors will get scared and panic sell their Bitcoin further fueling the price drop.
In this phase, early investors begin to reintroduce their accumulated holdings to the public. These investors already realized a profit and now they are exiting their positions before the trend reverses. This exit causes the emergence of a swing that creates a price retrace in the market. Untrained investors are left with the holdings of those that were ahead of the trend. The market reacts instantaneously to all information regarding an asset.
This reaction encompasses all the data surrounding the investment. The value of your asset reflects the sum of all the hopes, fears, and expectations of all the market. News such as future regulations, major institutional adoption, and the introduction of new financial products all play a major role in the pricing of Bitcoin.
Additionally, non-Bitcoin related issues can affect the price of your asset. Occurrences such as major elections can cast doubt on the stability of an asset in the future.
This scenario is especially true when speaking with new unregulated assets such as Bitcoin. Also, major events such as war, natural disasters, or pandemics affect the market value of assets as well. The volume of an asset is the amount of market activity it experiences. In the case of a bull trend, you should notice jumps in the trading volume. This price raise should correspond with a spike in market volume. In a pump, large investors manipulate the price of an asset using their weight to initiate price trends.
This rule states that a market in motion will remain in motion until a trend reversal occurs. Basically, if you notice a large scale trend, you can expect that the trend will continue until you notice the start of another accumulation period by educated investors.
Unfortunately, it can be very difficult to successfully determine when a trend reversal is underway. The market will always have small and medium swings. These movements can make it extremely tricky to verify if a movement is actually the start of a reversal. A careful evaluation of all outside trading factors can help you to make the right choice in these situations. Take most of profits here.
Most likely will decline back to 35 ema. There is no correction at this moment! I'm waiting that price can continue uptrend. We can open long position as soon as BTC will break nearest resistance. Next resistance Videos only. Will History Repeat itself? Remember you heard it here first! Breakout Imminent!!! Bitcoin potential breakout from triangle.
Wyckoff Distribution says Bitcoin will go down,don't get trapped. Update on previous idea. The facts are in the chart! Bitcoin reached nearest resistance An important feature of a diamond top bottom pattern is that the volume corresponds with the size of the trading range, increasing as the price rises declines and the range peaking near the high low price point.
The downward upward trend that follows this is an indication of reduced enthusiasm amongst traders about the market. This narrowing range in the second half of a diamond pattern can be represented by a descending resistance level and ascending support, which is a critical breakout point. Traders should look out for this line to be crossed before accepting that the trend is going to change. It is caused by big traders looking for large liquidity to fill their orders by hunting stop-losses and baiting breakout traders.
Harmonic price patterns are those that take geometric price patterns to the next level by utilizing Fibonacci numbers to define precise turning points. At the root of the methodology is the golden ratio, or some derivative of it 0. The golden ratio is found in almost all natural and environmental structures and events; it is also found in man-made structures.
Since the pattern repeats throughout nature and within society, the ratio is also seen in the financial markets, which are affected by the environments and societies in which they trade. Harmonic patterns are much more advanced than simple candlestick or chart patterns above, and we will not go through them in detail here. For more information, read about harmonic patterns on Investopedia and Babypips.
For more Bitcoin technical analysis resources like this, read our complete guide to learn how to trade crypto. View all posts by alunasocial. Skip to content. Technical Analysis: Chart Patterns for Crypto Trading Chart patterns are the bread and butter of any technical trader, and it is important to understand what they mean, and know how to act accordingly.
Top 8 Chart Patterns for Crypto Trading There are too many chart patterns to list them all here, so we will just be picking some that have a relatively high success rate.
The exact opposite is true for the descending triangle pattern.