The impact of technical analysis on cryptocurrency trading: as BTC is influenced by graphic models
The cryptocurrencies, in particular Bitcoin (BTC), were at the forefront of the digital currency revolution. Since its establishment in 2009, BTC has undergone numerous prices of prices due to market feelings, economic indicators and technical analysis. This article will deepen the way technical analysis influences Bitcoin trading and will explore how different models of graphs can affect the price of cryptocurrency.
What is technical analysis?
The technical analysis (TA) refers to the study of historical and graphic data to predict future price movements in financial markets, including cryptocurrencies such as BTC. The AT provides for the analysis of various factors such as price trends, the relative resistance index (RSI), mobile mediums and other technical indicators to identify potential trading opportunities.
How does technical analysis affect the price of Bitcoin?
Technical analysis has a significant impact on Bitcoin trading for several reasons:
- Mercato feeling : the tone of the feeling of the market plays a crucial role in determining the movement of BTC prices. The positive feeling (for example, optimistic investors, bullish news) can increase prices, while negative feeling (for example, bearish news, pressure to sell) can lead to decline.
- Graphic models : different graphic patterns have distinct characteristics that can influence the price of bitcoin. For example:
* Trends : Inversions of the consolidated tendencies are often favored by investors, leading to an increase in the purchase pressure and higher prices.
* Ribillista Engulfing
: When a stock forms a candle model that swallowed up upright with lower highs, it indicates a potential reversal.
* Engulfing Bearish : in the same way, the bearish deception models can report a trend down.
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* Index of the strip of the request (RSI) : an increasing RSI can indicate overload conditions, leading to potential Sell-offs.
* Middle mobile (but) : but in the short term they tend to be more volatile and sensitive to the variations of the market, while long -term MAS are less susceptible to price fluctuations.
- MARKET CICLES : BTC price is influenced by wider market cycles:
* Trendy inversions : BTC often undergoes trendy inversions, with the breakout or the continuation of a reduction trend that leads to an increase in the purchasing pressure and higher prices.
Key graphic models that influence the price of bitcoin
It is known that different models of graphs affect the Bitcoin price:
- Ungulfing upright : A bullish swallowing scheme is characterized by:
* A larger candelabondo that closes above the maximum of the previous day.
* The W
- Engulfing Bearish : On the contrary, the bearish deception models include:
* A smaller candlestick with a shorter wick that closes below the minimum of the previous day.
* The W
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* A large head is formed in the upper part of the reverse triangle.
* A small shoulder is formed on the bottom of the same reverse triangle.
- GAP Fill : If a gap between two price levels is closed, it can indicate a strong purchase or sale pressure.
Conclusion
The technical analysis plays a crucial role in determining the movement of Bitcoin prices, with various models of graphs that influence its trajectory. By understanding these schemes and using technical indicators, investors can increase their chances of successful trading in the cryptocurrency market.