If you’ve spent any time browsing crypto Twitter, or any of the Bitcoin or crypto-focused communities on Reddit, there’s no doubt you’ve come across investors challenging traders sharing charts filled with trendlines, saying that “technical analysis doesn’t work.”
While technical analysis does not guarantee success, it can certainly increase the probability of it. However, any bias – something that is ever-present throughout the crypto market – must be removed to accurately get a read on the market. Let’s take a look at how bias can interfere with technical analysis, and why many believe the practice doesn’t work at all.
Crypto Technical Analysis Isn’t About Perfection, It’s About Probabilities
Bitcoin price has exploded out from its recent low trading range between $6,400 and $7,400 and made its way toward a local high of $8,900.
The leading cryptocurrency by market cap has since been consolidating and before the day is over is likely to choose the direction it’s going to go on for the weeks ahead.
Related Reading | Comparing Current Bitcoin Breakout To Historic October China Rally
But the most recent price action can be confusing, as cryptocurrency trader Jacob Canfield points out. Because the market is comprised of both bearish and bullish selling or buying pressure, oftentimes price patterns can appear to be both bearish and bullish, and if a trader or analyst holds any bias, there’s a strong chance their judgment will be clouded.
In an example shared by the prominent trader, the same chart is shown with two different chart patterns drawn out with trendlines. One appears to be a bull flag pattern, which typically signals bullish continuation. The other pattern could be a triangle or pennant that has started to break down.
What do we say to the god of death? pic.twitter.com/aeACAod1B4
— Jacob Canfield (@JacobCanfield) January 16, 2020
The above serves as a perfect example of why technical analysis isn’t perfect and is regularly challenged by those that do not practice it.
Even Bitcoin’s Downtrend Line Changes With Personal Bias
How trendlines are drawn, and by whom can reshape the same structures across the same price chart, especially if there is bias thrown in the mix.
Take Bitcoin’s downtrend line for example. Trendlines should be drawn with the most possible touches, however, bias can easily cause an analyst to miss this important point, and draw the line across the most obvious points.
In the above example, the green “bullish” downtrend line has only been touched twice, and Bitcoin has now broken out from the trendline on the third try, suggesting the downtrend is over.
Related Reading | Bulls Beware: Last Bitcoin Downtrend Breakout Led To Bear Market Lows
However, the red trendline has multiple touches and hasn’t been breached above by Bitcoin with this recent rally, suggesting the downtrend isn’t over at all.
So, for those of you new to technical analysis or don’t understand it, it does work, but it requires a clear view of the market, without any bias. For those that are regularly practicing technical analysis and failing to find success, try removing any personal bias from your charts, and see if your win rate improves. The post appeared first on NewsBTC. origin »
Long-term venture capitalist Tim Draper has doubled down on his prediction of $250,000 each Bitcoin in the next two years. Draper’s bold prediction isn’t based on any technical analysis because he doesn't “quite understand” them but he sees it “pretty likely that we’re gonna hit $250,000 by end of 2022 or early 2023 based on […]
The XRP price has been on a downward trend since June. In November, it broke down below a significant support line and has decreased all the way to a major support area. Since the beginning of November, the XRP price has lost 40 percent of its value.
Any significant crash in bitcoin price tends to focus the minds of investors on money lost. However, for the overwhelming majority of investors, that isn’t actually going to be very much. As recently pointed out in an article on LongHash, out of investors who have lost money on the latest bitcoin price drop, less than 10% are likely to have lost more than $200.
With exchanges controlling so much of the industry inflows, and accounting for more than 40% of the jobs, any review of the year has to start and end there. An analysis of the dominant trends driving trading platforms serves as a proxy for measuring the cryptosphere’s overall health.
The Bitcoin price has not made any significant movement since yesterday. It is showing bullish signs in lower time-frames. In the long-term, it is approaching the logarithmic support line above $6000.
Earlier this month, NewsBTC reported that the market capitalization of all crypto assets, Bitcoin included, printed what is known as a death cross in the land of technical analysis. The ominous-sounding title is given to when a short-term moving average of any asset – the 50-day MA for example – crosses under a long-term moving.
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The weekly Crypto Technical Analysis is provided by Dmitriy Gurkovskiy, Chief Analyst at RoboForex. Needless to say, all statements and views expressed below and any forecasts contained herein are solely based on.
Technicals suggest a nascent bear market with price now below both the 200-day moving average and daily Cloud. Any price action below US$10,000 will likely be sold off heavily in the near-term.
Noted YouTube financial markets and cryptocurrency analyst Alessio Rastani in his latest video has talked about the possibility of bitcoin crashing down to $3000. However, he believes that his ‘wildcard BTC price scenario’ has a higher probability of playing out.
Binance coin has yet to see any relief as bears force price action to create a third lower low. The current market price rests of a key support line at $18. 9 and will determine whether price levels drop further.
During periods of times when assets consolidate and price action becomes exceptionally confusing, some crypto analysts will occasionally flip their Bitcoin price charts upside down in an to attempt to remove any preconceived bias from their technical analysis.
It was another slow week for cryptocurrency markets and while most coins were trading sideways, today we are seeing some blood. All the cryptocurrencies in the top 10 are down a few percent, including EOS.
Despite the pessimism seen across the crypto community in regards to altcoins, the following technical analysis will evaluate whether Ethereum, XRP and Litecoin are bound for an upswing. At the moment, altcoins continue limping without any significant price movement.
Monero is heavily bearish in the short-term, with any moves higher in the cryptocurrency currently being heavily sold A bearish head and shoulders pattern on the four-hour time frame suggest that the XMR / USD pair could drop towards the $58.
Any good investor, trader, or financial analyst – be it Bitcoin, crypto, or traditional financial markets – conducts due diligence such as fundamental analysis and technical analysis before and while taking a position, to minimize risk and maximize reward.
Since the announcement of its Voice social platform on June 1st, both the EOS/USD and EOS/BTC pairs have fallen over 60%. Mean reversion targets for both pairs are US$5.00 and 67,000 sats with any further bearish price action finding support at US$2.65 to US$2.90 and 29,000 sats.
Most thought that trader Michael Burry was crazy when he started shorting stocks in 2008. But he felt that the market was overheated and the prices would eventually drop. His intuition was right – and it made him $100 million richer.
While Bitcoin decouples from the rest of the market, altcoins are lurking without any major price action. Even though some cryptocurrencies that have rallied over the last few days, such as Matic, Harmony and Lisk, most of the altcoins in the cryptocurrency industry have been consolidating.
Bitcoin has stolen the spotlight as it moves above $12,000 again following a seven-day rally. The pioneer cryptocurrency continues to decouple from the rest of the market while altcoins are lurking without any major price action.
Over the last week, Bitcoin’s trading volume has been fading away. On July 15, it surpassed $25 billion, but over the past few weeks, it dropped to around $14 billion today. As BTC’s volume continues declining, its price seems to have gotten stuck in a $600 trading range between $9,900 and $9,300 without any clear signs […]
The post Bitcoin fork technical analysis: Bitcoin Cash, Bitcoin SV, and Bitcoin Gold appeared first on CryptoSlate.
Bitcoin bulls have won yet another descending channel breakout, causing short-term price action to bounce off a key support around $9,500 and push price levels back to 5 digits. Bitcoin Monthly Chart On the monthly XBT/USD, we can see a doji forming on the latest candle as the head sits in the middle of two large wicks.
Over the last 3 Days, Bitcoin has dropped around $1,000 forming a tight descending channel. Bears are struggling to gain any momentum as price levels toy with key support around $9,850 as mentioned in my previous analysis.
Bitcoin investors are paying more per coin than at any time in history – despite the Bitcoin price dropping to half its all-time highs. Bitcoin Realized Cap Hits $93 Billion That was the conclusion in new analysis of an underreported metric this week, which casts light on genuine consumer interest in Bitcoin.
Litecoin (LTC) down 14. 5 percent Halving will see prices drop and miners crashed Charlie Lee is predicting doom. Because of August halving and a high possibility of low prices, many miners will shut down due to losses.
The Cambridge Centre for Alternative Finance (CCAF) has just launched the Cambridge Bitcoin Electricity Consumption Index (CBECI). Its hope is to cut through the myths and provide unbiased and accurate real-time data for analysis.
The Ripple-promoted token has reversed sharply lower after rallying to a fresh 2019 trading high The four-hour time frame shows that a potential bearish head and shoulders pattern could be forming The daily time frame highlights the absence of any new bullish patterns XRP / USD Short-term price analysis XRP has a neutral short-term trading […]
The post XRP Price Analysis: Ripple-Promoted Token Makes U-Turn appeared first on Crypto Briefing.
By CCN Markets: Trading bitcoin comes with an extremely high degree of risk because of its volatility. Other than technical analysis, which can assist in finding buy and sell points, crypto traders are beholden to the whims of other traders.
Nothing in this article is to be construed as investment advice. Neither the author nor the publication assumes any responsibility or liability for any investments, profits or losses you may incur as a result of this information.
Nothing in this article is to be construed as investment advice. Neither the author nor the publication assumes any responsibility or liability for any investments, profits or losses you may incur as a result of this information.
Nothing in this article is to be construed as investment advice. Neither the author nor the publication assumes any responsibility or liability for any investments, profits or losses you may incur as a result of this information.
The second Litecoin halving will take place on August 6th, and the next Bitcoin halving is in less than a year. We have already performed analysis on the historic price behavior during halvings: but how do miners factor into the market price? Miners invest in specialized equipment to mine the coins, and just like any […]
The post Pricing In The Bitcoin Halving: How Miners Are The Key To Major Upswings appeared first on Crypto Briefing.
Nothing in this article is to be construed as investment advice. Neither the author nor the publication assumes any responsibility or liability for any investments, profits or losses you may incur as a result of this information.
Nothing in this article is to be construed as investment advice. Neither the author nor the publication assumes any responsibility or liability for any investments, profits or losses you may incur as a result of this information.
Nothing in this article is to be construed as investment advice. Neither the author nor the publication assumes any responsibility or liability for any investments, profits or losses you may incur as a result of this information.
Bitcoin’s meteoric surge had everyone believe that it was the start of the bull rally; however, that rally seems to have exhausted the bulls as the price is stuck in a sideways movement. Short-Term Analysis The price of Bitcoin is stuck in a sideways movement without any massive dips or surges for over five days, […]
The post Bitcoin to face an imminent drop by $400; Bull momentum vanishes as weekly chart bleeds red appeared first on AMBCrypto.
Nothing in this article is to be construed as investment advice. Neither the author nor the publication assumes any responsibility or liability for any investments, profits or losses you may incur as a result of this information.
Nothing in this article is to be construed as investment advice. Neither the author nor the publication assumes any responsibility or liability for any investments, profits or losses you may incur as a result of this information.
One of the most controversial cryptocurrencies on the market – Bitcoin SV seems to be the only one immune to the recent market correction which sent most coins down almost 10%. The overally cryptocurrency marketcap took a $20b loss last night and unfortunately is not showing any signs of recovery at the time of writing.
Zilliqa has a bullish short-term trading bias, with the cryptocurrency still well supported on any moves lower The ZIL / USD pair has a bullish medium-term outlook with cryptocurrency still trading above its 200-day moving average The daily time frame is showing that price remains trapped within a horizontal price channel Zilliqa / USD Short-term […]
The post Zilliqa Price Analysis ZIL / USD: Escaping With The Goods appeared first on Crypto Briefing.
Bitcoin loves to trade inside triangles. The leading crypto asset by market cap just broke down from a multi-month triangle and spent most of 2018 trapped inside a descending triangle that ultimately broke down.
After three months of consolidating, Bitcoin price broke down from the triangle formation it had been trading in. The fall took Bitcoin from over $10,000 to under $8,000 in less than 48 hours. According to one crypto analyst, price action is mimicking the behavior and movements that took place within the triangle formation Bitcoin broke.
Bitcoin price is currently below $8,000 just days after breaking down from a multi-month triangle pattern where it was consolidating. With Bitcoin now trading below $8,000, where could the leading crypto asset by market cap go next for targets? Bitcoin Price Trades Below $8,000, Breaking Through 200-Day Moving Average Bitcoin price is currently free-falling, trying.
It opened at 0. 00002553 in 2018 and as of this writing, it is up by over 40%. This development can be jarring to market participants, especially after the pair recently pierced resistance of 0. 00004.
It opened at 0. 00002553 in 2018 and as of this writing, it is up by over 40%. This development can be jarring to market participants, especially after the pair recently pierced resistance of 0. 00004.
Bitcoin price analysis, however, shows that former resistance levels are now serving as strong supports as BTC consolidates and prepares for the next leg up. BTC 00 was strongly rejected from $ 7,687 and at the time of writing BTC rides along the 20-day MA which is serving as a soft support. Selling volume has
