Understanding Bitcoin Price Charts
Bitcoin is something that is ever growing. It’s still a brand-new industry and crypto-currency that more and more people are becoming interested in with every passing day. You’ve heard about, and you want to take part in the rat race. There’s only one problem, you have no idea when or how to invest. You may be an experienced investor, but you are uncertain as to how to or when you should invest. You need help understanding the Bitcoin Price Charts. So, that is what we are here to talk about. This is your simple guide to understanding the Bitcoin Price Chart.
Understanding Bitcoin Price Charts: Price Trends
When it comes to predicting price trends, there’s two primary approaches you can take. These are not the only two, but they are probably the ones you want to look at if you are still new to bitcoin. The First Method would be Fundamental Analysis. Fundamental Analysis looks at financial statements from companies, as well as its competitors and the market in general. When fundamental analysis is applied to potential futures, the focus remains on the overall state of the economy. In this analysis, they include factors of all kind. Why? Because literally everything effects the economy, which in turn will affect the price of bitcoin. Things like interest rates, production, earnings, GDP, housing, manufacturing, etc.
Technical Analysis, on the other hand is more a security analysis. It forecasts the direction of prices by studying the past market. Basing its conclusion based on patterns, rather than basing it off the current and potential future state of the economy.
These two methods are not exactly what you would call full proof. There are some that states that both methods maybe can predict potential outcomes, but when it comes to actually predicting the stock price accurately, there’s a great amount of unpredictability. This argument is call the Efficacy Market Hypothesis. This hypothesis is not necessarily full proof either. It’s sort of a topic of some debate.
Understanding Bitcoin Price Charts: The Significance of Candlestick Charts
Continuing with the theme of price trends. Candlestick charts are a style of financial charts that are used for explaining movement in things like currency. Each Candlestick is a unit of measure of time. Most of the time one “candle” signifies one day. So, what kind of data does a candle stick chart show? Well, it shows the opening price of bitcoin in a day, the lowest price, the highest price, and the closing price.
Understanding Bitcoin Price Charts: Color Significance
Understanding the color significance of Candle Stick Charts is pretty simply, but just in case you are not aware I will go over the basics. The color of the candle body indicates whether the closing price was higher that the opening price, the lowest and highest price given the period as well as the closing price. Green mean a raise and red means a drop in the price. These sorts of charts are a part of the OHLC family. This is one of a multitude of other chart types to suit any advanced trader’s performance. So, it really depends on you and your preference.
Understanding Bitcoin Price Charts: Conclusion
These are some very basic tool that you can use to just get started. If you are really considering becoming a full-time investor in Bitcoin, you’ll have to dive in and get your hands dirty. You can read articles and guides on the internet, and but nothing beats personal experience. Check Our Reviews page for more insight into trusted companies. Check our site for reviews of all kind. It’s great place to become more knowledgeable about the world of finance, and will shed some light on some of the scams out there. Check out the previous post by clicking here.