How to Analyze the Bitcoin Market
To become a successful Bitcoin trader, one needs to analyze the market. It is not easy and takes time. However, you can find signals if you know what to look for when trading. So, to be a successful investor in this digital asset, here is how you can analyze the Bitcoin market. If you plan to trade Bitcoin, you can visit bitcoin code.
Read Bitcoin Blogs Regularly
Many informative blogs about this electronic money will inform you not only about the current events but also give you some advice on how to invest your money. These blogs are excellent examples because they offer accurate and precise information.
Read Information on Social Platforms
More so, there are social media channels out there that also find information about current rates and events in real-time. There are many social platforms, so it is good to follow them all. You can also find people who offer their services or products related to cryptocurrencies on those platforms. These people will also advise on genuine exchanges that successfully facilitate this digital asset's trading.
Read Daily Crypto News
Remember that you need to stay informed, so news and events that affect these digital asset rates come out daily. Moreover, they often appear without previous notice, so it is vital to check news sources daily.
Use Twitter Profiles to Get Live Updates
Twitter is a powerful social media platform. Hence, if you are interested in this virtual currency, go to Twitter and select a Bitcoin or rather cryptocurrency-related group or person that will give you all necessary updates within a short period.
Relative Strength Index
The Relative Strength Index (RSI) is a momentum indicator that compares the magnitude of the recent growth to recent downturns to measure the speed and change of price movements. It wavers between one and a hundred. Also, people generally believe that RSI should be under thirty for buying and over seventy for selling. Additionally, the lower the RSI, the more undervalued the asset is.
Moving Average Weighted
Moving Average Weighted (MAW) is used to gauge the overall sentiment generally felt throughout the market. The strategy analyzes situations in the short, mid, and long-term moving averages. Traders calculate the moving average by taking the standard of the data points in a given period.
Moreover, people should use the Moving Average Weighted strategy to analyze price movements over a shorter period, not over long periods like months or years.
Williams Fractal is a movement indicator whose basis is the ADX formula. The ADX can help you dive into the micro. However, Williams Fractal is an excellent indicator for a quick macroscopic view of the momentum trends.
This wavering indicator shows the strength of both the upward and downward movement in the price of an asset. On the other hand, the William Fractal indicator often produces several false positives. Therefore, using different indicators like ADX and RSI combined with Williams Fractal is advisable to make better trading decisions.
Fundamental Analysis versus Technical Analysis
The fundamental analysis basis is that the underlying factors, such as the company's performance, management, and market size, determine the price of an asset.
On the other hand, technical analysis does not consider any economic or fundamental factors. Instead, it focuses purely on the chart and the indicators like RSI, MACD, and candlestick patterns.
Bitcoin trading is an exciting and thrilling market many people want to be associated with, but some don't know exactly how it works. However, it is essential to understand and analyze the cryptocurrency market before you begin trading.