Bitcoin Price Charts Basics
No matter if you plan on buying bitcoin or you already own some, it’s important to know how much the cryptocoins are wroth when you convert them to your preferred currency.
At a later time, you mcight want to find out when to hold and sell your coins, with the goal of making profit in the process. Though, studying price charts and learning finance trading terms can be a nightmare, particularly for novices. We have added a beginner guide below to help you better understand the basics.
What is Bitcoin’s Current Price?
Some of the best resources to look up the most recent price of bitcoin (BTC or XBT) are the exchange you purchased them from. Some of the more popular exchanges are: Bitstamp, Bifitinex and BTC-E.
Techniques For Forecasting Price Trends
Predicting price movements and anything traded at an exchange is always a risk, it’s impossible to be right every time. A lot of traders have lost a ton of money trying.
The two most used approaches to forecasting price movement are called technical analysis and fundamental analysis. Fundamental analysis inspects the underlying forces of an economy; a company or security, while technical analysis tries to predict the direction of prices based previous market data, mainly historical prices and volumes displayed on price charts.
Where to Find Bitcoin Price Charts
In order to conduct technical analysis on bitcoin price and volume history, you need to look up bitcoin price charts that show clear readable data.
The most fundamental type of price chart shows prices as a line:
Closing prices of any given time frame (a month, a week, a day, one hour, etc) are used to create the price line. This type of chart can be used to get a brief overview of what prices have been doing as of late, but traders need more in depth data to come to a solid conclusion.
Chart Basics: The Candlestick Chart
The broadest type of chart among traders is the candlestick price chart, as seen below:
Candlestick charts show more data than just the closing price: each ‘candle’ displays the opening price, the lowest and highest price of the given time-period as well as the closing price.
Also, the color of the candle body signals whether the closing price was higher than the opening price. A green bar is also known as an ‘upbar’. If it’s lower than the opening price its usually a red body also known as an ‘down-bar’.
The candlestick chart is a member of the family OHLC which stands for open high, low close price charts. It’s important to note that there are a lot of different chart types that best fit the trader’s preference.
Together with the patterns that groups of candlesticks form, this is what traders base their trend directions on, bullish (increasing prices), bearish (declining prices) or neutral (sideways).
Now that we’ve provided you with a basic introduction on how to read bitcoin charts, it’s your job to start following bitcoin’s price movement on a daily basis. You will quickly start noticing specific patterns on the charts
You will inevitably start noticing certain regularities on the charts – most noticeable the trending behavior of prices.