Technical evaluation: Analysis of the price of the price of the cryptocurrency market
The world of cryptocurrencies has become increasingly popular in recent years, with new coins and tokens appearing daily. While many investors attract the possibility of high yields, there is often a more nuanced approach to make founded decisions on investing in cryptocurrency. Technical evaluation, specifically analysis of price diagrams, can provide valuable insight into market trends and samples.
Understanding price diagrams
The price diagram is a graphic representation of security pricing over time. This ensures the visual representation of the upward or downward trend of safety and the level at which it has reached its historical performance. Technical analysts use various technical indicators to analyze these tables and make forecasts on future market movements.
Main indicators
Many key technical indicators are used to analyze price diagrams:
- Moving averages
: These indicators represent the security price during a given period, smoothing data and identification of trends.
- Relative Strength Index (RSI) : This indicator measures the strength of the most recent price movements of security by calculating the difference between the current price and the 50 -day moving average.
- Bollinger Bars : These indicators represent two standard differences over and below the 21 -day security of safety, providing insight into volatility and reversal of trends.
- Stochastic oscillator : This indicator calculates the percentage of time an oscillator is above or below a certain level, helping to identify over -purchased and excessive conditions.
Analysis of price diagrams
When analyzing the price tables of the technical evaluation insight, it is essential to take into account both short and long -term trends. Here are some key taking:
* Trends : Identify the general trend of security by reviewing short-term (7-50 days) and long-term (200 days) averages.
* Support and Resistance : Look for areas where the price has consistently bounced, indicating strong levels of support and areas where the price has fallen historically, indicating the resistance level.
* Candle holding samples : Learn candlestick patterns to identify potential purchase or sell signs, for example:
+ Bullish flooding: The green flood pattern indicates the potential rise.
+ Bear flooding: The red flood pattern suggests a potential decrease.
+ Hammer: The shape of the hammer indicates the potential purchase signal.
* Province borders : Identify areas where the price has found historically support and resistance as they can give traces of future price movements.
Case Study: Bitcoin
Analyze Bitcoin (BTC) price diagrams to illustrate how to apply technical evaluation:
In 2017, Bitcoin experienced a significant price after a reduced event, which reduced its supply. This led to a rapid increase in demand and pushed prices over $ 20,000.
Here are some key indicators used during this period:
* Moving averages : The 50 -day and 200 -day moving averages both exceeded the resistance level.
* The Relative Strength Index (RSI) : RSI has been overly evaluated, indicating that security has reached the low point.
* Bollinger bands : The bands were inflated with the price, indicating increased volatility.
A combination of these indicators suggested that the price would probably continue up. In 2019, Bitcoin experienced another significant price increase after an unnecessary event, raising over $ 40,000.
Conclusion
Technical evaluation provides a valuable tool for analyzing price lists and identifying potential trends, subsidies and resistance levels.
