Bitcoin and cryptocurrency price charts might be confusing to a lot of people. However, they are really not that difficult to understand. As soon as you get some basic fundamentals down it will be an absolute breeze.
If you are looking to invest in the bitcoin and other cryptocurrencies, being able to read a price chart is an absolute necessity. Though, keep in mind that while price charts and keeping up to date with your favorite coins news is great, it’s still rather challenging to make a full proof price prediction.
What is the price of one bitcoin?
The best and quickest website for monitoring bitcoin and cryptocurrency prices is CMC, or Coin Market Cap.
By opening up that site we can see that the price of one bitcoin is almost at $8,000. The market cap is close to $130 billion and the circulation is almost at 17 million units.
Bitcoin and crypto price information can also be seen on every single exchange like Bittrex and Binance.
Understanding and predicting prices.
It’s impossible to predict where the price of a certain coin will go. Investing is a very risky game. Ton’s of traders lose huge amounts of money because of the volatility of the market. Cross out the idea of some sort of predictable and stable growth. Everything is volatile, however, by reading the charts you can develop a general idea of where the price of the bitcoin or certain coins might be headed.
There are two main approaches to forecasting the price of coins. The technical analysis approach and the fundamental analysis approach.
The fundamental approach pertains to actually analyzing a company and the economy in general. While technical analytics are aimed at forecasting the direction in which a price will go based on things like historical costs, volumes, and market data.
Bitcoin technical analysis.
Carrying out a technical analysis pertaining to bitcoin costs requires you to look at a chart. Such as the one below. The closing prices for a given period of time are used to draw price lines. Traders prefer to look at what are known as ‘candles’ to figure out where prices are headed.
Candles show the opening, lowest, and highest price of a given time period. Green candles indicate that the closing price of a digital currency is higher than its opening price. Red candles demonstrate the opposite.
Additionally, candles show how wide or narrow the coins spread is.
Candles can be viewed at different time intervals, ranging from 1 minute to 30 days and more.
All popular exchanges have candles that can be readily viewed.
Candles give a pretty good idea as to the current market state.
It also helps to look at buy and sell orders on exchanges. The price of a coin will gradually rise as the ask prices (on the right) are eaten up.
There are a ton of great sites like Trading View that can help you get better acquainted with cryptocurrency price analytics.