Crypto Technical Analysis Tools
In this article we will go through which platform offers the best crypto technical analysis tools for free. We will list which technical tools you need to start your journey and what platforms offer these technical analysis features for free. Topics that will be covered are:
- What is Crypto Technical Analysis?
- Crypto Technical Analysis Charts
- Crypto Technical Analysis Indicators
- Crypto Technical Analysis Time Intervals
- Crypto Technical Analysis Drawing Tools
- Best Trading platform for Crypto Technical Analysis
What is Crypto Technical Analysis
Crypto Technical Analysis is a tool that traders use to identify price trends. It helps them figure out how the market behaves, providing a sound basis for smart trading choices. Although it may sound complicated, it is nothing more than analyzing the demand and supply in the desired market.
Technical analysts look to identify patterns in the price change throughout history. Based on the existing statistics, investors make an assumption on the future price and come up with a trading decision. Chart investigation is a crucial part of any crypto technical analysis. You can identify trends by keeping track of moving averages, support and resistance levels, and trading volume.
There are two main types of tech analysis that every crypto trader should employ on a daily basis. Their concepts are quite simple but the implementation is what differs successful investors from others.
– Short-term technical investigation (the period in between a day and a week, with emphasis on small price changes and patterns. You, as a trader, are trying to find peaks and bottoms that may occur within the next hour.)
– Long-term technical investigation (ranging between a month and a year. This is used for a general course of a chosen crypto and whether it should be in your portfolio long-term.)
Crypto Technical Analysis Charts
A basic tool for technical analysis is the bar chart. From one bar in the chart you will get information regarding open price, close price, highest price and lowest price within the selected time frame represented by the bar.
A screenshot from Bitmex where you can see a green and a red bar in the chart. A green bar indicates that the close price is higher than the open price and vice versa regarding a red bar.
Candlesticks are the most common graph type in technical analysis. The purpose of candlesticks is to identify trends and trend lines. Candlesticks contains the same information as the bars but looks different graphically.
A screenshot from Bitmex where you can see a green candlestick and a red candlestick in the chart.
More Crypto Technical Chart Types
Crypto Technical Analysis Indicators
Technical indicators are a critical tool for making decisions based on crypto technical analysis. Indicators are mathematical formulas calculated based on historic parameters of the underlying asset. These are some of the most common technical indicators:
Moving Average (MA)
Moving average is one of the most common technical indicators. You calculate this over a certain time period. If you are looking for the 30-day moving average you sum the last 30-days closing price and divide it by 30.
Moving Averages Convergence Divergence (MACD)
This is a trend-following momentum indicator. It is calculated as a relationship between two moving averages. MACD is calculated by subtracting the 26-period Exponential Moving Average (EMA) from the 12-period EMA.
Relative Strength Index (RSI)
This technical indicator is a momentum indicator to evaluate if the underlying asset is overbought or oversold. Relative strength index measures the magnitude of recent price changes and is displayed as an oscillator that can have a reading from 0 to 100. An oscillator is a graph that moves between two extremes.
On-Balance Volume (OBV)
This is a technical trading momentum indicator that uses volume flow to predict changes for a cryptocurrency.
Accumulation/Distribution Line (ADL)
This is also a volume-based indicator that is designed to measure the underlying demand and supply. The purpose is to indicate whether buyers are accumulating or distributing the underlying asset or cryptocurrency.
Average Directional Index (ADX)
This technical indicator is used to measure the strength of a positive, or negative, trend. The negative trend is called Negative Directional Indicator (-DI) and the Positive Directional Indicator (+DI). Therefor, ADX includes three different lines.
This is a momentum indicator that compares a particular closing price of its prices over a certain period of time. The sensitivity of the indicator to market movements is reducible by adjusting that time period or by taking a moving average of the result. The indicator generates overbought or oversold trading signals with a value between 0-100.
Both Binance and BitMEX do offer all these technical indicators for free in the trading screen.
Crypto Technical Analysis Time Intervals
It is critical to have the opportunity to see the crypto technical graphs in different time intervals. The charts are often seen in minutes, hours, days, weeks, or months. The time interval you should use depends on what time horizon you invest for.
Both Binance and BitMEX do offer all these time intervals for free in the trading screen.
Technical Analysis Drawing Tools
Some basic elements in crypto technical analysis are trend lines, support levels and resistant levels. Crypto technical analysis drawing tools are critical to find these trend lines, support levels and resistance.
Other important drawing tools are pitchfork, Fibonacci circles and spirals, XABCD pattern, Triangle Pattern, Head and Shoulders, Elliott Impluse and Triangle Wave, Date range, Price range and more.
Both Binance and BitMEX do offer extensive drawing tools for free in the trading screen.
Best Trading platform for Technical Analysis Tools
In this article we went through which crypto technical tools you need to perform a technical analysis. We found that two of our favorite crypto trading platforms, Binance and BitMEX, offer all these features for free, where you dont have to buy additional technical analysis software.
Technical analysis is crucial for traders to have success when investing in cryptocurrencies, as shown by this article. There are many platforms that offer the service in terms of charts, data indicators, and API tools. These instruments gather data and translate it into information for you.
Yet, we do need to emphasize the importance of your own involvement. At the end of the day, you are the one with a final decision on when and how to trade. Thus, you should not rely 100% on programs but use your own knowledge and experience as well.
We continuously publish free crypto technical analyses in our blog.
The post List: Best Crypto Technical Analysis Tools, Software and Bots appeared first on Cryptocointrade.
Bitcoin to Surpass $20,000 ATH By Early 2021 According to Raul Pal
Former hedge fund manager and CEO of Real Vision, Raoul Pal, believes that the real impact of the COVID-19 pandemic is about to reach the financial markets. By outlining several upcoming cornerstones among traditional financial assets, he highlighted Bitcoin as the “life raft” in this situation.
Raoul Pal: Everything Has Changed
In a recent Twitter thread, the Wall Street veteran outlined the rapidly growing COVID-19 cases worldwide. The total number of infected has neared 45 million, while the death toll is almost 1,2 million.
Pal predicted that these rising numbers in Europe, the US, and Canada are about to “exert economic pressures and extinguish the Hope phase of reflation dreams.” He believes that the upcoming consequences will harm the economy even more than the early 2020 developments. A real economic recovery “will take more than a post-election stimulus in January.”
He continued by looking at several markets that have started to feel the adverse consequences and have fallen to long-term support levels. Those included the oil price, Spain’s benchmark stock market index – the IBEX 35, the EU Banks Index, the euro, the British pound, the US dollar, and more.
As such, he broached a few possible solutions – “you can buy bonds and dollars, or you can take the life raft – Bitcoin.”
“Or, to dampen the volatility of a risk-off event (we can and will see sharp BTC corrections), you can have all three for a near-perfect portfolio for this phase.” – Pal concluded.
Bitcoin Will Eat The World And Price Predictions From Pal
Pal further highlighted his positive views on Bitcoin by saying the cryptocurrency “will eat the world.” He attributed it to its performance, which is so dominant and so “all-encompassing” that it will “suck in every single asset narrative dry and spit it out.”
“Never before in my career have I seen a trade so dominant that holding any other assets makes almost no sense.”
As far as price predictions go, Pal said that $14,000 is the only resistance left in Bitcoin’s way to the all-time high at $20,000. He expects that BTC should overcome the December 2017 high by “early next year at the latest.”
Additionally, CryptoPotato recently reported an even more optimistic and long-term forecast. By using a regression on the logarithmic chart since inception, Pal brought up a model that sees Bitcoin reaching $1 million by 2025.
Featured Image Courtesy of BusinessInsider
Coinbase Launches A Crypto Debit Card With 1% Reward on Bitcoin Spendings
- The largest US-based cryptocurrency exchange Coinbase announced today the launch of a Visa debit card, allowing customers to spend digital assets for everyday purchases.
- According to the official statement, the Coinbase Card will provide clients the opportunity to earn up to 4% back in cryptocurrency rewards.
- It will be available in nearly 30 countries, including the US, the UK, and across Europe. It will be connected to customers’ Coinbase accounts, and they can spend the funds without having to move funds to their bank accounts.
- The designated cryptocurrency asset spent by users will be automatically converted to US dollars prior to completing the purchase or the ATM withdrawal.
- The rewards will be available for US-based customers only initially and will depend on the cryptocurrency used. For instance, customers can get 1% back if they spend bitcoins and 4% back if they choose Stellar Lumens (XLM).
- The Coinbase app will serve as a fund manager. All spendings, reward details, and preferences will be manageable through the app.
- US customers can start applying to receive the card through the exchange’s app or the website. The first approved clients will be announced “this winter,” and they can start spending with a virtual card. The physical one will be delivered within two weeks.
Bitcoin-Friendly Avanti Receives License to be The Second Crypto Bank in The US
Now the United States can boast a new crypto bank: Welcome Avanti.
Avanti Financial Group, a firm founded by the former managing director at Morgan Stanley, Caitlin Long, announced that it had been granted a license to offer banking services by the Wyoming State Banking Board.
Avanti is The Second Crypto-bank Operating in the United States
With this decision, Avanti becomes the second crypto company to receive a banking license after the crypto exchange Kraken was also authorized by the Wyoming State Banking Board.
This license allows Avanti to offer financial services in the same way that a traditional bank would, only that these are in addition to the crypto services already provided by the platform.
According to Avanti, the application in the state of Wyoming was key to meeting its expectations —just like Kraken did— as it is the only state in the country that has a regulator with a bank supervisory and regulatory program for digital assets mature enough to ensure the operations of a banking platform that offers risk-free custody services.
Currently the only type of U.S. financial institution that can provide final and simultaneous settlement of trades between digital assets and the U.S. dollar-because it is the only type currently approved to handle both within the same legal entity-is a Wyoming special purpose depository institution like Avanti.
Blockchain and Banking Working Together
Avanti said in a tweet that the first crypto product the company will launch will be a stablecoin pegged to the dollar and backed by physical deposits made to its bank accounts. The token will be called Avit and will be available for its customers in the first quarter of 2021.
AVANTI IS OFFICIALLY A BANK! Our charter & business plan were approved 8-0 today, incl. #Avit (a tokenized US dollar, which we announced we’ll issue initially on #Liquid (#Bitcoin sidechain) & #Ethereum. Open for commercial customers early Q1. More here:https://t.co/CgNazN08zV
— Avanti Bank & Trust (@AvantiBT) October 28, 2020
Avanti revealed that Avit tokens will run on Ethereum – a critical blockchain for those seeking to take advantage of programmable smart contracts – and Liquid – a Bitcoin sidechain developed by Blockstream for those seeking to benefit from inter-exchange transfers for arbitrage operations.
Avanti had previously confirmed its collaboration with Blockstream to develop this token, explaining that it would not be like a normal crypto-currency and that it would be “just bank money that happens to be issued on a blockchain.” So it may look more like JPM Coin than the famous USDT.
Caitlin Long promised that Avanti “will provide products and services that do not exist in the market today. They did not refer to what they had in mind, so we can only hope.
There has been a lot of activity around cryptocurrency and financial services with blockchain technology in the United States. After MicroStrategy announced a major investment in Bitcoin, Square revealed a $50 million investment in BTC. Also, PayPal started providing support for cryptocurrencies and JP Morgan started using its own cryptocurrency commercially days after it talked about Bitcoin’s potential to triple its price.
Most of these announcements helped boosting BTC’s price. Will this have a bullish effect too?
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