How to make Basic Bitcoin Technical Analysis

Posted by Alex on June 4th, 2018

Today crypto traders use several methods to estimate the cryptocurrency market. The two main approaches of price predicting are fundamental analysis and technical analysis. Let's talk about the first of them - called Technical analysis. Using this method, traders can get a better understanding of the cryptocurrency market and separate trends on it. This data can be used to make smarter predictions and better trades.

This method takes into consideration Bitcoin analysis history including price charts and trading volumes. However, the fundamental analysis is focused on establishing if Bitcoin is over or under valued.

Methods for predicting price trends

Predicting price movements of anything traded at an exchange is always risky – nobody wins all the time. Many traders have lost lots or all of money into such attempts. So, the deep understanding of this market is very important!

Where to find bitcoin price charts

To make technical analysis on bitcoin price and its volume history, you will require price charts in a more representable way than just plain number tables. Good places to start are the charts on Getcrypt.com

Analyze cryptocurrency news

Using technical analysis, you can start your trading. But there are a number of more important things to consider:

When considering entering a trade, it's not recommended to take your attention only on technical analysis. Especially in the cryptocurrency field, a field full of everyday generating bitcoin news, there are other fundamental factors that have a huge impact on the crypto market (ex: regulations, mining hash, ETF certificates etc.) Technical analysis simply can’t predict these important factors, so we recommend you to mix the technical analysis and the fundamentals analysis to make the best possible investments!