The Bitcoin chart is the most important day-to-day checking for all those who invest in that currency form. The first thing you need to know is how to read prices and trends, even for accepting it as a payment and knowing how much you are getting at the moment. Read on as we unveil how to read a Bitcoin chart and be on top of the game while buying, selling, paying with, and accepting Bitcoin payments.
Table of Contents
Current Bitcoin Price – The Exchange Market
Bitcoin is an exchange currency, and as such, its value fluctuates as much as the market for it does. At the moment you are about to pay with or receive payment with Bitcoins, you need to know which is the money equivalent to it in the output currency you need to change it for. This is the first step at the initial moment and what you need to do is check the current value in the exchange it came from or one of the major ones like Bitcoin Price Index, a platform owned by Coindesk.
Price Trend Prediction
The first step is to understand how much is that particular Bitcoin worth at the moment you take possession of it. Once you have figured that first part out, you are ready for the second step which is to predict if the price for that Bitcoin (or particular cryptocurrency) is about to go up or down. If predictions state that it is going up, then the best thing is to keep them and sell them when they translate into more of the currency of your choice. Dealing with price trends is risky business, and there are two distinct ways to do it:
Fundamental analysis takes on global and underlying variables like, for example, the economy at a country, company, continent, and worldly level. From that analysis, the experts can come up with a prediction about price fluctuation.
The technical analysis involves variables linked to past prices and market data from a historical point of view. From the past fluctuations of the market and the volume of transactions, experts can do a forecast about what will happen to it in the future.
The Candlestick Chart
The candlestick chart is the Bitcoin chart preferred by most Bitcoin holders. It is basically a Bitcoin price chart but with some added information that can help you make forecasts. It is made of “candlesticks” that can be either green or red. These candlesticks inform several things like the Bitcoin price at the opening moment and at the closing moment. If the first is lower than the second, then the candlestick will be shown in green. The opposite turns it into a red candlestick. Also, the measure of the candlestick in length is an indicator for the difference between opening and closing price points. If the opening and closing are far apart in a red stick, that is serious bad news because it lost a lot of its worth in that time period. The opposite is very good, because you can make money with it.
Let´s say you have a month of data to see how your Bitcoin is doing; the things you have to check are:
- How many greens and how many reds – If the greens are more than the reds, then the result might be a great one and is good to invest. The opposite is not recommended.
- How far apart are the reds – The reds need to be far apart from each other and not in the last week to be sure it will not lose value as you purchase it.
These are the basics for reading a candlestick chart; it takes years of knowledge to be able to do accurate predictions with this info.