Bitcoin Stock Chart Analysis: Indicators

Bitcoin is going through its ups and downs, but this article will help you pick up on identifying patterns in historical charts. It’ll help you predict where bitcoin might be headed and how you can analyse its movements.

Bitcoin Stock Charts

You may have heard that bitcoin has experienced an huge increase in its value in the past. If you didn’t hear about it, you sure won’t because it was on the news and other media sources all over the world. What you really should know is that bitcoin is experiencing wild swings. And these swings can mean huge gains or huge losses for anyone investing in this cryptocurrency. Therefore, before diving headfirst into the world of cryptocurrencies, it’s best to be aware of the trends and patterns surrounding past data points before making any investment decisions about what direction to go next with any trading plan.

The Bitcoin Trade

The bitcoin trade is what you’re looking to invest in if you’re looking to profit the most. It’s also why it’s important to invest in bitcoin stocks and learn about its past performance before investing a significant amount of money into it. The base currency for the trade is called USD, so all your tools will be in USD. This means that the volatility shown is in USD, and that the value of your investment may fluctuate significantly against other currencies – such as the Canadian dollar – depending on where you live.

Other important things to note about the bitcoin trade is that there are two exchanges you can choose from: Bitstamp and Coinbase. The Bitstamp exchange is based in Luxembourg, and has a wide range of fiat money pairings – such as USD, EUR, GBP and RUB. The Coinbase exchange is headquartered in San Francisco, California, and it trades only the BTC/USD currency pair. Both exchanges offer charts for analysis by professional traders in addition to storing your funds safely away on their platform.

Bitcoin Price Chart Analysis

The below bitcoin chart analysis shows you how to read historical price movements on a price chart.

Over time, bitcoin has seen its prices rise and fall dramatically, sometimes within minutes of each other. This is due to its volatility, which can make or break your investment. Before investing in bitcoin, you should be aware of how its price has moved in the past. Let’s say you bought it at the end of December at $15000 per coin and sold it at the beginning of February with a gain. You’d be looking to invest in BTC again with the hopes that it will continue to rise until you reach your profit target.

However, if bitcoin crashed from $15000 down to $6000 within days, you’re going to want to know why this happened before investing again in this cryptocurrency. If you spot a spike like this in the past, you may want to avoid making another purchase until after things have settled down again. There are trends you can look for in order to understand the current sentiment of bitcoin investors.

The bitcoin charts shows price movements within BTC over time. The base currency is USD, and prices are in BTC.

Indicators

If you’re looking at these charts and wondering how those of us who take part in this trade can tell how close we are to reaching our profit target, then there’s a couple of tools that we use to analyze the previous data points and pinpoint potential opportunities to make new trades. The two tools we use are moving averages and RSI indicators.

Moving averages are most commonly used to identify trends in price movements. They’ll provide you with a quick glimpse of the average price movements over time so you can see how, say, bitcoin was rising and falling for x days in recent months. This will help you understand what seems like sudden fluctuations and when it’s time to take new trading action. As mentioned above, the RSI indicator is used to measure momentum – or even overbought/sold signals – that can be used to make trades based on the potential movement of prices within BTC.

The below chart analysis shows how to read historical price movements on a price chart. The base currency is USD, and prices are in BTC.

As seen on charts, a moving average is used to identify trends in price movements over time, and an RSI indicator is used to spot overbought/sold signals that can be used to make trades based on the potential movement of prices within BTC. You can see from the above charts that bitcoin was rising and falling for x days in recent months; this means that we might want to take new trading action when it recovers from these falls. As for the overbought/sold signals, it doesn’t show any right now because bitcoin is still trending upwards. But if you’re looking to invest in bitcoin stock, it’s important to know whether or not the price action is overbought – or overpowered – by market sentiment. This means that the buying interest for bitcoin is so high that its value can’t rise any higher before demand starts to dry up and sell-offs begin.

Other Factors That Affect Bitcoin Stock Prices

While analyzing historical data points from charts like above are important aspects of trading, there are other factors that can affect your decision about whether or not to invest in cryptocurrencies.

For one, the recent proliferation of bitcoin stock platforms and cryptocurrency exchanges has made it a lot easier to buy and sell BTC than it was before. This, coupled with greater use cases for blockchain technology in the near future, means that more people are using bitcoin stock and adding to its overall value.

But these factors aren’t enough to consider a cryptocurrency stock investment. There’s more that you need to consider.

Then there are the cryptocurrency craze itself. A lot of people treat currency as a form of speculation, but this is only one part of it. You also need to look at the technology itself, and how it will be applied in the future. In other words, what are the financial motivations behind investing in bitcoin? Does it benefit you and your business?

To conclude, we want to give you some insight on how we see cryptocurrencies like bitcoin working in the future.

Climate change

Another factor is climate change; as you may know, one of the biggest problems facing our planet today is climate change. If countries and governments are to take steps towards curbing its effects, they’ll need to introduce new technologies that help store energy in a sustainable way. Thus far, entrepreneurs have been looking at ways of storing renewable energy using blockchain technology.

This means that, in the near future, if we see a rise in the adoption of sustainable energy facilities powered by renewable energy sources, then it will lead to a rise in the adoption rate of blockchain technology. At this point, it might be worth investing in BTC or other cryptocurrencies because they’ll be backed by an increase in demand for clean energy.

M&A activity

Lastly, there’s the M&A activity. Several companies are planning to implement blockchain technology into their business models and become purveyors of cryptocurrency by launching their own tokens and plans for ICOs and IPOs. They’re looking to apply blockchain technology to existing industries and industries yet to be developed.

This means that if companies get involved in the bitcoin stock market, it will likely see a rise in its value – especially if they go public with their plan. Thus far, we haven’t seen many companies get involved, but we’re seeing more than at the start of 2017. As more and more companies enter the market, its value will likely rise.

Is Bitcoin Stock A Good Investment?

Bitcoin stock is being used for a growing number of digital transactions today. It has a limited supply of 21 million coins, which could be worth investing if you believe that the cryptocurrency craze will continue to grow over the coming months and years. Whether or not this is a good investment strategy will depend on when you decide to buy into BTC stock. Right now, it’s still too early because there are currently more sellers than there are buyers – as shown by our recent bitcoin stock chart.

What the Future Holds For Bitcoin and Other Cryptocurrencies?

While no one can predict what the future will bring, it’s likely that we’ll see the value of bitcoin rise and fall just as much as any other asset. At this point, we’re seeing an increasing number of people using it, so you can expect higher demand for its usage in the future.

Additionally, as more business owners realize that blockchain technology is a viable business model for them to pursue, they’ll look at how important bitcoin is to their niche market and how useful they can make it through utilizing blockchain technology.

It’s likely that bitcoin will continue to dominate the digital currency world, at least for the time being. If you’re interested in how to buy bitcoins, see our guide on How To Buy Bitcoins. We hope you enjoyed this article, and be sure to leave a comment below if you have any questions!

Note: PCOcular does not advice anyone to buy or sell instruments, we do not advice any particular instrument (like bitcoin), we just talked about analysis of instrument charts.

For more information: PC Ocular.

Benkő Attila is a Hungarian senior software developer, independent researcher and author of many computer science related papers.

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