Effect of Technical Analysis on Cryptocurrencies Trade: How do graphic models affect BTC

The cryptocurrencies, especially Bitcoin (BTC), were at the forefront of the digital currency revolution. Since 2009, BTC has undergone many price fluctuations since the BTC created by the BTC due to the sense of the market, economic indicators and technical analysis. This article explains how technical analysis affects the Bitcoin trade and explore how different graphic models may have an impact on the price of cryptocurrency.

What is a technical analysis?

Technical analysis (TA) refers to the research of data and historical charts to predict future price changes in the financial markets, including cryptocurrencies such as BTC. AT is to analyze different factors such as price development, relative power index (RSI), mobile averages and other technical indicators to identify potential conference opportunities.

How does technical analysis affect the price of Bitcoin?

Technical analysis has a significant impact on the Bitcoin trade for a number of reasons:

• Market sentence : The tone of the sense of the market plays an important role in determining the BTC price movement. A positive feeling (for example, optimistic investors, ascent) can raise prices, while a negative feeling (such as a new discount, sales pressure) can cause a fall.

• Graphic Models : Different graphics models have clear features that can affect the price of bitcoin. For example:

* Trends : Investors often recommend translations from established trends, leading to increased purchase pressure and higher prices.

* HAUSIER CROULFING : When you have a lifelong chandelier pattern with lower spikes in stock, this shows a potential turning.

* Connected downstream : Similarly, lowering models that lower the model can indicate a downward trend.

• Indicators : The use of different technical indicators can also affect the BTC price movement:

* Relative resistance index (RSI) : A growing RSI may indicate excessive conditions, leading to possible sales.

* Mobile average (MA) : The short interval is usually more unstable and more sensitive to market changes, while longer masks are less sensitive to price fluctuations.

• Market cycles : BTC’s price is affected by wider market cycles:

* Trendy Translations : BTC often passes the trend turns when the decline or continuation of the downhill, which increases purchasing pressure and higher prices.

The main graphics models that affect Bitcoin’s price

Several graphics models are known to affect Bitcoin:

• Engloufing homesiier : The lifelong pattern of the bull is characterized by:

* A larger candlestick that closes above the previous day.

* The heart of the attached candle (the trunk of the candle) is longer than its body, indicating a strong rising pace.

• Engling toilet : On the contrary, the commitment of the disadvantage includes:

* A smaller candlestick with a shorter will that closes the day before the previous day.

* Candle candle (candle frame) is shorter than its body, indicating a strong speed.

• Formation of head and shoulders : This graphic model shows a potential turning:

* A large head is formed at the top of the opposite triangle.

* A small shoulder is formed at the bottom of the same opposite triangle.

• Filling abnormal

  

  : If the difference between the two price levels is closed, it may indicate high purchase or sales pressure.

conclusion

Technical analysis plays a crucial role in determining the movement of Bitcoin prices, in the various graphics models that affect its progress plan. By understanding these models and using technical indicators, investors can increase their chances of success in the cryptocurrency market.

Benefits Benefits Using Wallets Algo