Technical evaluation: In terms of insights on the cryptocurrency market price chart analysis **
In recent years, the cryptocurrency world has become more and more popular, with new coins and chips being emerging every day. While many investors use high return opportunities to make reasonable decisions on cryptocurrency investment, a more nuanced attitude is often needed. Technical evaluation can provide valuable insights into market trends and models specifically by analyzing price charts.
Pricing chart understanding
The price chart is a graphical view of safety price history over time. It gives a visual security up or down trend image as well as the levels it achieved during the historical result. Technical analysts use a variety of technical indicators to analyze these charts and provide forecasts about future market changes.
Basic indicators
Several main technical indicators are commonly used to analyze several diagrams:
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- Bollinger bands : These indicators draw two standard deviations above and below the 21 -day average, giving insight into volatility and change of trends.
- stochastic oscillator : This indicator calculates the percentage of time with the oscillator above or below a certain level to determine the overcrowded and resold conditions.
price chart analysis
Analyzing technical evaluation insights’ prices charts, short -term and long -term trends must be taken into account. Here are some of the main shows:
* Trends : Set the overall security trend by looking at its short-term (7-50 days) and long-term (200 days) movement.
* Support and resistance : Look for areas where the price has constantly bounced, which indicates a strong level of support, as well as areas where the price has historically decreased, indicating the level of resistance.
* Candlestick models
: Study candlestick models to set possible purchase or sale signals such as:
+ Bullish Endulfing: The green volume model shows a potential rise.
+ Bearh Enliulfing: The red volume model shows a potential decline.
+ Hammer: The shape of the hammer shows a potential purchase signal.
* RANGER BIGS : Set areas where the price has historically found support and resistance as they can provide hints of future price changes.
Case analysis: Bitcoin
Let’s analyze Bitcoin (BTC) price chart to show how technical evaluation can be applied:
2017 Bitcoin halved the event, which reduced its supply, increased significantly. This led to a rapidly rising demand and increased prices exceeding $ 20,000.
Here are some of the key indicators used during this period:
* Medium average average : At that time, 50 and 200 days of moving averages were higher than the level of resistance.
* The relative strength index (RSI) : RSI has been resold, indicating that security has reached a low point.
* Bollinger bands : The groups were blown at the price, indicating increased volatility.
The combination of these indicators indicates that the price is likely to last up. 2019 Bitcoin has experienced another significant increase in price after half -halt, increasing it over $ 40,000.
Conclusion
Technical evaluation provides a valuable tool to analyze price charts and set possible trends, support and level of resistance.
