Trading With Bitcoin Charts
Famously known as the very first cryptocurrency, created in 2009 as a decentralised currency to rival traditional government governed currencies. Bitcoin began with a promise of lower transaction fees when compared to traditional fiat currencies and to be completely free from government interference or alteration.
With the biggest crypto market cap of over $1 trillion and a current valuation of $63,000, bitcoin is the most highly sought-after digital asset in the world. Bitcoin is famous in the trading world for its intense volatility. It has historical experience with tremendous highs followed by distinct lows. It has, however, over the past six months, experienced a meteoric rise following institutional adoption and increased acceptance as a legitimate currency.
In 2021, bitcoin is one of the most accepted cryptocurrencies for payments by merchants. Most notably, online casinos, retailers, and most recently electric car manufacturer Tesla Motors.
What are Bitcoin charts?
Just like forex or even stock trading, technical analysis can be critical to the successful trading of cryptocurrencies such as Bitcoin. One of the key technical tools to assist in bitcoin trading is that of bitcoin charts.
Bitcoin charts, and crypto charts in general, are graphical depictions of the valuation of bitcoin compared to that of another cryptocurrency or fiat currency. These charts can help determine price action and greatly assist in speculative trading by presenting the history of bitcoins price movements. This can help traders visualise and predict market trends.
Bitcoin charts are necessary for anyone who wishes to successfully navigate the crypto markets. These charts may appear quite confusing at first glance, but with training, like provided here at Zeply, you can reveal trends that predict future price movement.
It is best to use bitcoin charts in conjunction with other trading tools and strategies, as bitcoin charts do not take into consideration the fundamentals of the digital asset.
How to trade using Bitcoin charts 2021
Considering the meteoric rise of bitcoin over the past six months that has seen the world’s largest cryptocurrency jump of over 900%, it’s no wonder traders are looking to learn how to read and understand bitcoin charts.
We all want the most tools at our disposal in order to capitalise on the most incremental movements in the value of such a volatile digital asset. Bitcoin charts allow traders to visualise the price movement and valuation history of bitcoin in real-time and through historical statistics. So, let’s reintroduce you to bitcoin and how to trade bitcoin charts.
A quick cryptocurrency recap
Unless you have been living under a rock, you have at least heard of cryptocurrencies. Cryptocurrencies are a digital form of currency asset born from the desire to create a decentralised financial system, free from government interference. Crypto assets have come a long way since 2009.
Once thought of like a bubble set to burst, there are now over 6,000 tradable cryptocurrencies, and some have even become accepted as tender by merchants around the world. The total value of the cryptocurrency market is in the realm of $2.2 trillion, and bitcoin covers about half of that.
Unlike any other market, cryptocurrencies are traded 24/7. The market is not shut on weekends, nor does it have strict hours like stock markets. Cryptocurrencies are traded on exchanges, such as Zeply, at any time and on any day. The popularity of cryptocurrencies include support for a decentralised finance (DeFi) system, the advancement of blockchain technology in DeFi, and speculator support.
What is Bitcoin?
The most commonly used bitcoin trading charts used by crypto traders are the line, bar, and candlestick charts. Many traders may start with line charts – they are rather basic and therefore easier to follow. However, you are only plotting a line between opening and closing prices. Bar and candlesticks are the most used and understood bitcoin charts by professional traders.
How to read Bitcoin charts
One of the easiest ways to begin reading bitcoin charts and bitcoin live charts is to use candlestick charts. Candlestick charts are named for their appearance, featuring an upper and lower wick, and provide traders with information such as open price, close, price, and highest/lowest price points.
Many traders choose to read hourly bitcoin live charts, as they will depict the price action every hour. A Bitcoin price chart like this would then be able to show a trader how the market moved over a 24-hour period, every hour.
So how does one read crypto charts? To start, trends are only relative to the time period you have set the chart too. An upward trend over the past 2 hours, does not necessarily prove a continued push throughout the day. Use a larger time frame, and you may notice price charts for the entire day might show a downward trend.
With time and experience, you will learn to see multiple types of patterns for each trend type. For example, you may visualise a common pattern known as ‘the hammer’ – This is one of the easiest candlestick bitcoin chart patterns to see. It is essentially a strong indication of a reversal in trends and a potential price climb. You would be looking for a long lower wick on the downtrend and implies high-pressure selling. However, you’ll then see a solid buying pressure regain control of the price action.
Trading with Bitcoin charts
Trading with bitcoin charts is about observing three types of trends in the marketplace; bearish, bullish, and sideways trends.
A bearish market is that of a downtrend. It’s when the market valuation of bitcoin is in decline. This trend will be observed within bitcoin charts as negative price action and investors believe that prices will continue to fall.
Conversely, a bullish market is quite the opposite. The bull trend is one of positivity, where the valuation of bitcoin is on the rise and would appear to continue that way. Traders are often optimistic during a bull run and support bitcoins value with the belief that the value will continue to rise.
Sometimes referred to as a sideways drift, this market is one of low volume and uncertainty. Bitcoin valuations will fluctuate across a horizontal corridor and never really push or pull too hard in either direction. This trend is usually a sign of low volume, or volatility, and traders are likely to hold off taking a position as they wait for the eventual market breakthrough in any direction.
There are a number of strategies for handling bitcoin during any of these trends and it is important to understand the market in order to capitalise on a bull run or bearish turn.
What is the best Bitcoin chart?
The best bitcoin charts are bitcoin live charts that utilise candlesticks to most accurately display price movement. The time allocated to your chart will be determined by your trading style and goals. Short-terms charts would be used if you were looking to take advantage of the incremental movement’s bitcoin can make during the day, whilst you would be looking into more historical data if you were to trade the digital asset in the long term.
Candlestick bitcoin charts offer so much more information than a traditional bar chart. Instantly, by checking the colour of the candlestick, traders can determine if bitcoin opened at a value higher or lower than the closing price on any chosen day, month, or even year if you’re looking at a long-term historical chart.
Then we have the wicks – the upper and lower wicks of the candlestick can inform traders of the highest and lowest price bitcoin had reached in any given time period. In essence, a candlestick chart can show the entire price change of any given bitcoin trading pair. Zeply offers a variety of ranges to view candlestick bitcoin charts.
Candlestick bitcoin charts are perfect for determining price patterns and the development of bull runs and bearish shifts. With at least two candlesticks, traders can analyse the relationship between the candles to assess a trend or pattern – obviously, more candlesticks, the better as more information will yield more accurate results.
Trading Bitcoin with Zeply
At zeply.com, we stand by placing the power of money into your hands. Through innovation and community focus, we have created a crypto exchange, ideal for bitcoin trading.
No waiting around at Zeply. Bitcoin transactions are processed and completed within seconds. We’re talking about instant transactions here. Even the Zeply exchange is fast. Bitcoin to fiat currencies, like Euro transactions, are handled instantly too. The Zeply BTC wallet and exchange is quick, seamless, and simple.
The crypto trading platform couldn’t be easier at Zeply’s. The Zeply dashboard is totally initiative with easy to locate options for buying, selling, and receiving bitcoin. The design is sleek and beautifully neat – perfect for seamless trading and user-friendliness.
Secure crypto wallet
24/7 support, instant transactions, and trustworthiness make Zeply an ideal choice for storing your cryptocurrency. Zeply has a flawless security record and leverages the latest security protocols and encryption software.
2 Factor Authentication adds another layer of security to an already secure platform, whilst an authenticator app can make storing your bitcoin even more robust. There are just so many layers of security with Zeply’s BTC wallet.
Buying Bitcoin with Zeply
With a market in the region of $1 trillion, is anyone surprised so many traders want to get in on the bitcoin action? Bitcoin is the very first cryptocurrency and also the most valuable. There are many ways to trade the digital asset, such as on the Zeply exchange, and technical analysis is crucial to success.
The best charts for trading bitcoin will be determined by your trading experience, knowledge, and trading goals. Candlestick charts offer bitcoin traders the most amount of information in a single bitcoin chart and is perfect for predicting bull runs and bearish downturns.
Bitcoin Charts FAQs
DeFi has become a very common term in recent cryptocurrency news. Not every cryptocurrency offers DeFi services, including bitcoin, but it certainly pays to have knowledge of DeFi technologies as it definitely affects the valuation of the overall market. DeFi means decentralized finance, and it relates to modern business applications developed using blockchain technology that is fuelled by crypto tokens.
Cryptocurrencies are all a form of digital asset that aims to create a decentralized form of currency, free from government control or interference. However, not all cryptocurrencies are built the same, or even aim to achieve the same goals. Bitcoin traders need to research each cryptocurrency individually to determine if they are worth trading.
There are many different reasons to trade bitcoin over other financial instruments and even other cryptocurrencies. Traders should compare these factors when determining whether to trade bitcoin. Ultimately personal trading goals and capital will determine your decision to trade any cryptocurrency