Trend Spotting: How to Identify Trends in Bitcoin Price Charts
Trends play an important role in trading, giving traders a chance to use patterns in the price data to make decisions based on more than simple rises and falls, or worse, gut instinct. But how does one identify and draw a trend on a chart? When looking at bitcoin price charts like the one below, you can't help notice how prices at times seem to move along invisible lines: This can be seen whichever chart timeframe you look at, be it weekly, daily or on a 30-minute chart: Trend lines and trend channels. The lines you see in the charts above are called 'trend lines'. However, it is apparent....
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Analyzing Twitter mentions and Google Trends data is another way traders keep an eye on emerging trends and sector rotations in the cryptocurrency ecosystem. A common saying in the investing world is “The trend is your friend,” a phrase that points to the idea that the majority of the time, sticking with the prevailing market trend will produce positive results.Some of the common metrics used to identify market trends include: technical analysis, which involves studying price charts to spot opportunities; fundamental analysis, which involves looking at a project’s underlying economic and....
The price of bitcoin continued moving sideways today, oscillating between $204 and $214. Earlier today, the price of bitcoin recorded a low of around $203, before bouncing back to $214 during the following hour. Since the 18th of January, the price of bitcoin has been moving sideways, which reflects the market's attempt to correct the price, yet the price will soon break out of this trend and increase as implied by the Fibonacci retracement fan plotted on the 1 day Bitcoin/USD charts (look at yesterday's analysis). By studying the Bitfinex 1 hour Bitcoin/USD charts from tradingview.com....
Litecoin Price has been ranging between $3.20 and $3.70 since last Thursday, which reflects the low volatility of the market currently, as opposed to the high volatility we witnessed during the last week of October. Litecoin price printed $3.4 at the time of writing of this analysis and signs of an upcoming uptrend started to emerge. 5 Bullish Candles on the 1 Hour Charts: By analyzing the (LTC/USD) 1 hour charts from Bitfinex (look at the below chart), keeping the Fibonacci resistance fan we plotted on last Thursday's analysis and plotting the 20, 50 and 100 EMAs; we can conclude the....
In technical analysis, traders interpret the head and shoulders formation as a strong sign that a trend reversal is in process. Traders tend to focus too much on timing the right entry to a trade, but very few focus on developing a strategy for exiting positions. If one sells too early, sizable gains are left on the table and if the position is held for too long, the markets quickly snatch back the profits. Therefore, it is necessary to identify and close a trade as soon as the trend starts to reverse.One classical setup that is considered reliable in spotting a trend reversal is the....
Bitcoin price correction started yesterday after we spotted a "Bearish engulfing" candlestick pattern on the 4 hour (BTC/USD) charts throughout yesterday's analysis. Price correction pulled the price all the way down to $390, but thereafter we started spotting signs that signaled cessation of the downside price correction attempt. Price Correction Slowing Down on 4 Hour Charts: By analyzing the 4 hour (BTC/USD) charts from Bitstamp; executing Bollinger Bands and keeping the 38.2%, 50% and 61.8% Fibonacci retracement levels we plotted during our analysis on the 2nd of November, we can....