What is an Example of a Bitcoin Trend? Identifying Trends in Bitcoin Trading
A bitcoin trend in bitcoin trading is the tendency of bitcoin prices to move in a particular direction for a period of time in a general direction upwards or downward.
Trends can be interpreted using bitcoin trend lines.
Bitcoin Trend line analysis helps traders to define the direction of the market. Bitcoin Trend lines connect a series of bitcoin price highs or bitcoin price lows forming a slanting bitcoin trend that represents the general movement of the bitcoin price.
For an upward sloping line this is referred to as an up bitcoin trend - bitcoin trendline drawn is referred to as an upwards bitcoin trend line.
For a down-wards sloping line this is known as an down bitcoin trend - bitcoin trendline drawn is referred to as an downwards bitcoin trendline.
Upwards BTCUSD Trend Line
An upwards bitcoin trend line is drawn below the up-wards sloping pattern by connecting at least two lows. This will draw a bitcoin trend line which explains the general direction of the market upward.
The example illustrated below shows how bitcoin price moves when it's heading in an up-ward trend. The bitcoin price will move up-wards forming support regions.
Since the btcusd market moves in a zig-zag manner bitcoin traders normally draw a bitcoin trend line which displays the general upwards bitcoin trend direction.
What is an Example of a Trend? Identifying Trends in Cryptocurrency - Crypto Trend Definition
An up bitcoin trend occurs when the bitcoin price makes consecutive higher bitcoin price highs & higher bitcoin price lows. Each bitcoin price high is higher than the prior bitcoin price high - higher high: HH, and each bitcoin price low is higher than the prior bitcoin price low - higher low: HL.
Up bitcoin trend lines gain more validity each time bitcoin price touches but does not penetrate it. An up bitcoin trend remains in place until this series of higher bitcoin price highs & higher bitcoin price lows is broken - bitcoin trend line break reversal bitcoin trade signal.
Downwards BTCUSD Trend Line
A downwards bitcoin trendline is drawn above the pattern formed by consecutive lower highs, it must connect at least two highs, with most recent high being lower.
Since bitcoin price moves down in a zig-zag manner traders normally draw a line which displays the general down ward direction. In bitcoin crypto market technical analysis, this general direction is referred to as the BTCUSD Crypto TREND by traders. This down bitcoin trendline is drawn on Bitcoin chart showing the resistance areas (bearish bitcoin trend market move direction).
What is an Example of a Trend? Identifying Trends in Cryptocurrency - Crypto Trend Definition
A down btcusd crypto trend occurs when the btcusd crypto price forms a series of lower highs & lower lows. Each btcusd crypto price high is lower than the prior btcusd crypto price high - lower high, & each bitcoin crypto currency price low is lower than the prior bitcoin crypto currency price low - lower low: LL therefore showing bearish bitcoin crypto price movement.
Down bitcoin trend lines gain more validity each time bitcoin price touches but does not penetrate the bitcoin trend line. A down bitcoin trend remains the general direction til this series of lower bitcoin price highs & lower bitcoin price lows is broken - bitcoin trend line break reversal bitcoin trade signal.
