Bitcoin Analysis is Based on 3 Factors Common in the Trading Market:
1. Crypto Price Moves in Trends
Bitcoin price movements follow trends. This means that after a trend has been established, the future cryptocurrency market price movement is more likely to be in same direction as a trend than to be against it. Most trading strategies are based on this cryptocurrency trading technical analysis concept - trend trading.
2. Crypto Price Movement Discounts Everything
Cryptocurrency trading technical analysis only considers price movement and assumes that, at any given time, price reflects everything that has or could affect the crypto instrument including even the fundamental factors. This only leaves the study of price, which is a product of the supply and demand for bitcoin in the btcusd market.
3. History Tends to Repeat Itself
History repeats itself mainly in terms of price movement. The repetitive nature of market movements is attributed to traders investor psychology; in other words, bitcoin trading participants tend to provide a consistent reaction to the btcusd trading market most of the time. Cryptocurrency trading technical analysis uses chart patterns to analyze these price movements. Although these crypto charts represent historical data they are still relevant because they illustrate cryptocurrency chart patterns that often repeat themselves.
List of All Crypto Indicators - Bitcoin Analysis Explained PDF - Bitcoin Analysis PDF
Understanding this trading technical analysis of the btcusd market can be a valuable bitcoin trading tool in determining the trend of any cryptocurrency market and assisting with entry and exit levels for your cryptocurrency trades.
The goal of these trading technical analysis methods is to help traders determine when the btcusd trading market is trending, & when it is not. If the price is moving in one particular direction, then we want to be on board. If the crypto instrument is not moving in a particular direction, all you are going to do is lose money as you will get whipsawed around and this is not what we want as bitcoin trading investors.
Unfortunately, many traders fight the trend and buy or sell in the opposite direction of a this trend direction, trying to pick a top or a cryptocurrency market bottom, only to see the btcusd market move further in direction of the trend.
Another common mistake traders often make is adding on to a losing bitcoin trading position, averaging a loss. This is not a good trading strategy especially in a strongly trending btcusd market. It is something that experienced investors never do. The trend is your friend, never go against it.
This trading technical analysis studies alert investors of bitcoin setups & there are no certainties in financial btcusd market. Profits come from using proven bitcoin strategies & bitcoin trading methods to find a trending bitcoin market and taking cryptocurrency trades in the same direction of the market trend.
With so many bitcoin trading investors using similar bitcoin tools, trading technical analysis can become a self fulfilling prophecy. If many bitcoin trading investors use the same levels as a buying point, the price goes up as everyone will make similar cryptocurrency trading technical analysis moves. However, the question is always how long these bitcoin trading moves will last?
Understanding this trading technical analysis methods will give the charts some meaning when you look at them and apply cryptocurrency trading technical analysis. Cryptocurrency trading technical analysis will help you understand why certain price movements occurred.
Crypto charts are used with technical indicators to look for chart patterns that have occurred in the past under certain conditions. When these conditions are noted again, you can use the past cryptocurrency chart patterns studies to make a buy or sell decision.
Learn Bitcoin Analysis Tutorial
- Moving Averages Crypto Indicator
- RSI Trading Indicator
- Stochastic Oscillator Crypto Indicator
- MACD Crypto Indicator
- Fibonacci Retracement Crypto Indicator
- Bollinger Bands Crypto Indicator
Most indicators are shown separately from the chart usually below it. This is because these crypto indicators often use a different scale than that of the price chart.
Some of the indicators are shown on the price chart itself, such as Moving Averages and Bollinger bands - these indicators are referred to as price overlays.
Explanation of these cryptocurrency technical indicators is found under the topic: List of All Crypto Indicators - Trading Analysis PDF - Learn Bitcoin Analysis PDF - Bitcoin Analysis Example
SUMMARY
- Bitcoin Analysis Relies on Defining Probabilities
- Bitcoin Analysis Uses History of Price Patterns
- Bitcoin Trading Analysis Uses Several Analytical Tools (Crypto Indicators)
- Bitcoin Analysis Uses Cryptocurrency Chart Patterns
Learn BTCUSD Analysis Tutorial
Most traders prefer technical analysis - learning the trading technical analysis methods also takes time to learn due to its nature which involves abiding by the trading technical rules.
To learn how to trade bitcoin trading successfully, it is important that you understand the 3 strategies, outlined below:
1. Bitcoin price moves will always follow a trend which can be identified by looking at the chart patterns or the crypto candlesticks charts. If any bitcoin trading investor tells you that you can also profit from the counter-trends consistently it will not be possible because the trend is the only proven method of making money in the btcusd market.
2. The market forces will drive the prices up or down depending on supply and demand. Cryptocurrency trading technical analysis seeks to measure the demand supply of a crypto instrument using various trading technical analysis tools & cryptocurrency indicators. The demand supply is reflected in the price action. Therefore, by simply looking at the price movements themselves you can try and predict what direction the price is likely to move towards using one or two technical indicators -bitcoin-currency trading technical analysis indicators like the moving average or support and resistance levels indicators.
3. The market not only shows the history of the past prices, but will also follow the trend that was in place, until its trend direction reverses. Some very important crypto indicators used to determine these cryptocurrency market movements are Moving Averages, MACD and Bollinger Bands Crypto Indicators.
When price starts to consolidate, which means there is no trend, you should use a different approach to analyze the btcusd market. You should use support and resistance levels and breakout trading strategies to analyze the ranging market prices.
When the btcusd trading market retraces, you should use chart patterns and indicators to analyze whether the current trend will continue or reverse.
