Monday, August 15, 2022

How To Read Crypto Prices

Basic Rules For Drawing Patterns

How To BEST Predict Crypto Prices and Recognize Trends

Though there are common chart patterns, the Trading tool wont identify them for you, so you need to learn how to identify them yourself.

As you can see from the cheat-sheet Continuation and Neutral patterns are symmetrical in terms of the price points that contribute to the pattern formation.

They suggest that a significant price move is expected, but the direction isnt certain. The upper and lower boundaries of the pattern provide the parameters for the expected breakout.

There Are Three Kinds Of Trends In The Market

Dows theory also suggests that markets experience three kinds of trends. Primary trends are major market movements and tend to last months or years. Primary trends can either be a bull market, meaning that the prices of assets are moving up over time or a bear market, meaning they are moving down over time.

Within these primary trends, there are secondary ones, which may work against the primary trend. The secondary trends can be pullbacks in bull markets, where asset prices temporarily move back, or rallies in bear markets, where prices temporarily move up before continuing their downtrend.

There are also tertiary trends, which tend to last a week or a little over a week and are often just considered noise in the market that could be ignored, as it wont affect long-term movements.

Look For Where Traders Place Stop Orders

When looking at the times when breakouts occur, you can make an educated guess about where people place stop-loss orders. Traders typically set orders slightly below or above a key level. When attention is focused on a certain area, price action could be particularly strong when these stop-loss orders are activated at scale.

Some players might try to manipulate the market by exploiting this dynamic. Here is how this happens:

  • Traders in long positions are watching a key support level, placing stop-loss orders slightly below this level
  • The manipulator might put additional pressure through naked short selling of the asset to try to break the support level while simultaneously spreading rumours and FUD
  • If this happens, traders stop-losses are activated and assets are sold at the market price
  • Because there are suddenly a lot of sellers, the price falls rapidly
  • Panic sets in and more people sell, pushing the price even lower
  • The manipulator can buy assets at the lower market price, closing short positions at a profit.

This strategy is known as short and distort or stop hunting this is market manipulation and is usually illegal in regulated markets, but still happens in cryptocurrency markets.

This works for both short-term levels and in the long term, as far out as five years.

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How To Read Crypto Charts

You need to know how to read these types of charts if you want to start trading cryptocurrencies and turning your Bitcoin into cash you can also do this through some of the popular bitcoin trading sites. If youre going to make successful crypto trades, you must perform competent technical analysis based on the Dow Theory.

Regulations And Legal Matters

How to Read Charts When Trading Crypto

The rapid rise in the popularity of bitcoin and other cryptocurrencies has caused regulators to debate how to classify such digital assets. While the Securities and Exchange Commission classifies cryptocurrencies as securities, the U.S. Commodity Futures Trading Commission considers bitcoin to be a commodity. This confusion over which regulator will set the rules for cryptocurrencies has created uncertaintydespite the surging market capitalizations.

Furthermore, the market has witnessed the rollout of many financial products that use bitcoin as an underlying asset, such as exchange-traded funds , futures, and other derivatives.

This can impact prices in two ways. First, it provides bitcoin access to investors who cannot afford to purchase an actual bitcoin, thus increasing demand. Second, it can reduce price volatility by allowing institutional investors who believe bitcoin futures are overvalued or undervalued, to use their substantial resources to make bets that bitcoins price will move in the opposite direction.

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Obtaining Historical And Real

While learning about cryptocurrencies, I desperately needed data that I could manipulate myself to do my own plots and analyses. Here I show you how to easily get real-time and historical crypto data right in your web browser with minimal programming skills. Source code, links, and some basic plots and analyses included.

Disclaimer: You will not find any financial advice here and Im no expert in cryptocurrency, cryptoart, NFTs, their trading, etc. I only give away free HTML+JavaScript code to get data through API calls to CryptoCompare.com and I display some plots derived from that data with some of my own subjective opinions.

And If you need any ad hoc job such as a web app tailored for your problem, just contact me!

I recently got interested in cryptocurrencies, cryptoart, NFTs, etc. Naturally, as a scientist working with data all the time, one of the first things I wanted to do was to play with cryptocurrency data myself. I saw plots everywhere in websites, news, and apps but how could I get my hands on actual data to play with it and do my own plots and investigations? And especially, how could I be sure it was up to date every time I requested it?

What Do Candlesticks Tell Us

Candlesticks can reveal much more than just price movement over time. Experienced traders look for patterns in order to gauge market sentiment and to make predictions about where the market might be headed next. Here are some of the kinds of things theyre looking for:

  • A long wick on the bottom of a candle, for instance, might mean that traders are buying into an asset as prices fall, which may be a good indicator that the asset is on its way up.

  • A long wick at the top of a candle, however, could suggest that traders are looking to take profits signaling a large potential sell-off in the near future.

  • If the body occupies almost all of the candle, with very short wicks on either side, that might indicate a strongly bullish sentiment or strongly bearish sentiment .

Understanding what candlesticks might mean in the context of a particular asset or within certain market conditions is one element of a trading strategy called technical analysis by which investors attempt to use past price movements to identify trends and potential future opportunities.

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Cryptocurrency Price Check: Taproot Activated Amc Accepts Crypto

Cryptocurrency prices were mostly higher Monday as bitcoin’s first upgrade since 2017 was recently activated and movie theater chain AMC – Get AMC Entertainment Holdings, Inc. Class A Report said it would accept crypto.

Bitcoin, the world’s largest cryptocurrency, was up nearly 1% to $65,206.93, at last check. Ether, the cryptocurrency that runs on the Ethereum blockchain, climbed 1.8% to $4.686.92, while dogecoin was off nearly 1% to 26 cents.

Zak Killermann, fintech and crypto expert with Finder, noted that “crypto investors went through an exciting week, with market leaders BTC and ETH hitting fresh all time highs.”

Bitcoin’s Taproot upgrade was activated on Sunday, the first major upgrade in four years.

“Taproot wont have any immediate, large impact on the bitcoin network, but instead gives developers a plethora of new tools to improve security, privacy and scalability,” Killermann said.

AMC Entertainment, the world’s largest movie theater chain, began accepting bitcoin, ether and other cryptocurrencies for online payments on Friday.

“Think of Taproot as better equipping developers with tools to build the future of bitcoin, to make things like AMC accepting crypto for payments even easier down the line,” Killermann said.

He added that not everyone is happy to accept crypto. Indonesias council of religious leaders deemed cryptocurrency haram meaning its use is banned for Muslims.

Why Is Bitcoin Up Today

Crypto Investing #39 – How To Read Cryptocurrency Prices With 8 Decimal Places – By Tai Zen

Bitcoins bullish price rise to near $70,000 in value comes as investors hope to see the $1 trillion market cap remain firmly in place ahead of a volatile trading period.

Despite the flurry of activity and popularity around emerging alt and meme coins like Shiba Inu coin, market analysts have said that fears over rising inflation are seeing traders shore up support in Bitcoin and major cryptocurrencies.

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Why Reading Cryptocurrency Charts Is Essential For Traders

Reading cryptocurrency charts is essential for traders to find the best opportunities in the market, as technical analysis can help investors to identify market trends and predict the future price movements of an asset.

Technical analysis refers to analyzing statistical trends gathered over time to understand how the supply and demand of a specific asset influence its future price changes. Reading crypto market charts can help investors to make well-informed decisions based on when they expect bullish and bearish movements to end.

A bullish movement refers to an upward price movement pushed by bulls, which are an assets buyers. A bearish movement is a downward price movement stomped on by the bears, which are the assets sellers. Technical analysis can help traders to evaluate price trends and patterns on charts to find trading opportunities. The best crypto charts help to monitor market movements, but they do have some caveats.

Example Of A Crypto Depth Chart

For example, if Trader A places a bid for one Bitcoin at $10,000 USD and then Trader B bids for two Bitcoins at $10,000 USD, the number of bids at $10,000 USD adds up to $30,000 USD available to buy Bitcoin at that price point.

So the green line, which represents the bids, plots a dot at each increment along the horizontal axis of the chart , representing each price point through the price range of available bids

At each price point, you can add up all the bids and plot the total along the vertical axis , representing the total number of bids at that price level.

When you roll your cursor over the depth chart on Coinbase Pro, you can see exactly how many bids or asks are placed at the exact price.

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What Is A Stablecoin

Price volatility has long been one of the features of the cryptocurrency market. When asset prices move quickly in either direction and the market itself is relatively thin, it can sometimes be difficult to conduct transactions as might be needed. To overcome this problem, a new type of cryptocurrency tied in value to existing currencies ranging from the U.S. dollar, other fiats or even other cryptocurrencies arose. These new cryptocurrency are known as stablecoins, and they can be used for a multitude of purposes due to their stability.

How Is Bitcoin Value Calculated

How To Read Bitcoin Trading Charts / Cryptocurrency Charts ...

Bitcoin’s value is largely dependent on its supply and the market’s demand for it. Its value is also attributed to other factors, such as alternative digital currenciesincluding their supply and priceavailability, and rewards for mining. Intrinsic value can also be estimated by computing the average marginal cost of production of a bitcoin at any given point in time, based on the block reward, price of electricity, energy efficiency of mining hardware, and the mining difficulty.

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Japanese Candlestick Cryptocurrency Charts

One of the most popular among cryptocurrency charts types, candlesticks provide enough information at a single glance. That is if you can read them. Usually, they allow you to see the minimum price of the asset for a certain time period, the maximum price, and the shift in the price. However, different types of candlestick cryptocurrency charts offer different information. Here you can see the basic explanation of common patterns, for more in-depth information you can visit Investopedia.

Bitcoin And Ethereum Flash Crash In Unison

Thursday 11 November 2021 10:47 , Anthony Cuthbertson

Bitcoin and Ethereum have mirrored each others price movements overnight, both suffering a flash crash before steadying.

Several other leading cryptocurrencies have copied this pattern, including Cardano , Ripple , Solana and Polkadot .

Its pushed the overall crypto market back below $2.9 trillion, however by its own notoriously volatile standards its barely more than a blip. Whether its the start of something more serious will be determined within the next few hours, though BTC and ETH remain within 5 per cent of their all-time highs.

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Wax Crypto Price Prediction: Why Is Waxp Going Up All You Need To Know

Walletinvestor uses technical analysis to forecast future values for a wide range of digital coins, including WAX and claims that WAXP could be a viable investment option. At roughly 8 a.m., WAX was trading at 0.783 USD. According to Walletinvestor projections, long-term growth is projected, with a price prediction of 1.788 US Dollars for 2026. The revenue is estimated to be around +128.35 % after a 5-year investment. In 2026, a present $100 investment may be worth 228.35 USD.

#NFT AIRDROP: Official #NFTs are coming to WAX on Tuesday, Nov 16th!Here’s your chance to win 1 of 200 free Hot Wheels promo #WAXPacks: Like & Retweet Comment your WAX Wallet Address24 hours only!

WAX Blockchain

How Big Is The Global Coin Market

How To BEST Read Cryptocurrency Charts

At the time of writing, we estimate that there are around 8,000 coins, tokens and projects in the global coin market. As mentioned above, we have a due diligence process that we apply to new coins before they are listed. This process controls how many of the cryptocurrencies from the global market are represented on our site.

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Types Of Crypto Charts

Although it seems that there is a limited number of variations to representing cost against time, there are still a fair few numbers of different types of tools available for crypto traders to do analysis. These include tools such as point & figure chart, bar chart, a tick chart, a volume chart, and a range bar chart. There is also a chart to see a visual representation of a coins market cap.

An example of a chart that you may be familiar with is known as the line chart. This simply plots its points from the closing cost of the previous period to the next closing period. It looks like this

You can see that the price of the coin is represented by one long line that moves up and down.

Although this is a very easy method for understanding coin movements, a line chart may be very limited compared to others when used in the trading analysis. For example, the line chart only uses the closing price data to create a chart. It leaves out the opening, high, and low prices.

The most popular type of chart that you might have come across in the cryptocurrency world is known as a Candlestick chart. A candlestick chart will always include all the characteristics of price and may provide more data for traders to analyze cryptocurrencies. The volume of the range is usually always printed at the bottom of any candlestick chart.

It consists of a real body with wicks on either side of the real body. It looks like this

Waxp Crypto Price Prediction Why Is Waxp Going Up Wax Crypto Price Prediction: Waxp Going Up: All You Need To Know On This Cryptocurrency Investment

The WAXP was trading at 0.7914 USD at 7:40 a.m. The price has risen dramatically. Its chart, which exhibits a rapid increasing trend during the night hours, reflects the increase in value. A new Hot Wheels NFT series was revealed last night along with a giveaway. The launch is on November 16.

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WAX Blockchain

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Bitcoin Price Of $69420 Next Target

Wednesday 10 November 2021 16:40 , Anthony Cuthbertson

Bitcoin forums and social media platforms are filling with calls to pump the price to $69,420 in order to achieve the cryptocurrencys prophecy.

The target represents the two favourite numbers of online meme boys and edgelords: one being a sex position and the other being weed slang. Bitcoin advocate Elon Musk has previously used the number as the price for one of his Tesla vehicles.

One user on the popular sub-Reddit called on fellow investors to Hodl Hodl until the price is reached, with the post receiving hundreds of upvotes.

$69420 represents Sex, Weed, 21M, Meme and #Bitcoin.Once we reach this, Hyperbitcoinisation Prophecy will be fulfilled.

The Three Movements Of The Market

How To Read Crypto Charts and Candles
  • The primary movement is the main movement which is a major trend and may last from less than a year to several years. It can be bullish or bearish.
  • Then we have the medium swing which is a secondary or intermediate reaction and may last from ten days to three months. It generally retraces from 33% to 66% of the primary price change since the previous medium swing or start of the main movement.
  • Finally, we have the short swing or minor movement varies according to market speculation from hours to a month or more.

These three movements can happen simultaneously, for example, a daily minor movement in a bearish secondary reaction in a bullish primary movement.

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Availability On Currency Exchanges

Just as equity investors trade stocks over indexes like the NYSE, Nasdaq, and the FTSE, cryptocurrency investors trade cryptocurrencies over Coinbase, GDAX, and other exchanges. Similar to traditional currency exchanges, these platforms let investors trade cryptocurrency/currency pairs .

The more popular an exchange becomes, the easier it may draw in additional participants to create a network effect. And by capitalizing on its market clout, it may set rules governing how other currencies are added. For example, the release of the Simple Agreement for Future Tokens framework seeks to define how ICOs could comply with securities regulations. Bitcoins presence on these exchanges implies a level of regulatory compliance, regardless of the legal gray area in which cryptocurrencies operate.

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