When you enter the cryptocurrency market, you must learn to read Bitcoin chart. It will help you a lot in predicting your next moves in the cryptocurrency market. Reading these charts can be very intimidating when you have just entered the market.
If you want a good grasp on the Bitcoin chart, you must know about Dow Theory.
- When you enter the market, you need to consider everything. You need to see all the present pricings, the prices that are predicted, which will integrate into your current asset price.
- When you get into the cryptocurrency market, you need to consider different factors that may affect it, as its demand now and in past and the future, regulations that may affect crypto market.
- The market does not work randomly. Past and present trends have a significant effect on the movement of the prices of the currencies.
- The predictions that you see are only focused are on the price of coins. The market analysts do not give their verdict about the other factors that may be affecting the market.
In the cryptocurrency market, it is seen that the trends it is seen that the market repeats its trends every occasionally.
Time Frames for Crypto Charts
The technical analyst who examines bitcoin chart needs to think twice about the tools they use and the periods they give their judgment on. The most popular periods that they use are:
- 15-minute charts
- Hourly charts
- 4-hour charts
- Daily charts
These traders close their positions every day. These are the traders who like shorter periods like hourly, 15 minutes, or even 5 minutes charts. They give you charts that are more frequent.
These are the traders who close their charts after longer periods. Therefore, they are called holder. They are open for weeks, months, and even years long. They find it better to use hourly, 4-hour daily and weekly charts.
The hammer signifies that the drop in the crypto coin prices and also if the buyers are coming back strong in the market.
The Bullish Engulfing Pattern
the orange candle denotes the seller’s control in the market, and the green candle denotes the bull hits in the market that will affect overwhelmed bears of the market.
It is the tool that makes you better understand the decline in the price of the bitcoin. The first candle denotes the bear-like nature of the market. The second candle denotes the small ranges that exist in the market.
You must learn to read Bitcoin charts before getting into the cryptocurrency. Bitcoin charts are the number tool to predict future changes in the market. It will also help you understand the market trend. In cryptocurrency market, the trend also repeats very often. If you learn to read the charts you will not need to hire a broker and you will be able to understand the trends better yourself.