Once you obtain a certain amount of Bitcoin, it is time to begin your digital currency career, which includes one inevitable daily routine. It is checking the current BTC price charts on a daily basis. Professionals who operate on the standard fiat market use price charts to quickly compare competing currencies and the exchange rates in real-time. These charts show the essential info about currency's status compared to another, including their relative value on the market.
Knowing how to analyze data from these charts is the most important skill in digital currency world. It allows you to make your own conclusions about the current market situation and to use BTC as an investment or speculation asset in a better way. Even if you're not interested in serious trading, just in online shopping, it is important to know how much money you have in your pocket at the moment of buying a product online. So, basic price chart is something that any cryptocurrency holder should understand.
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At some point, you might get interested in finding out how much your cryptocoins are worth if converted into fiat currencies or other cryptocurrencies. Knowing this can help you to manage your funds better by making smart choices, such as whether to hold on your coins or to sell them. Huge profit can be behind this knowledge.
Bitcoin current price
A good way to know the current Bitcoin price is taking a look at the exchange where you purchased BTC. Most popular BTC exchange options include Bitfinex, Bitstamp, Coinbase, Kraken, etc. Some other common choices include Bitcoin.org and Coindesk. To know the current price of Bitcoin is a good start, but it's equally important to see how the prices will develop in the future.
Ways to predict price changes
First, you should understand that any forecast or prediction of price movement at the exchanges is very risky, as no one is absolutely right or makes no mistakes. Many traders have made large amounts of money by following the predictions, but it is still an uncertain way of making a profit.
Among the many methods of prediction are technical analysis and fundamental analysis. Fundamental analysis includes examining the hidden and repressed aspect of the economy. Technical analysis, on the other hand, represents forecasting the price movements which are mainly based on the past market information.
Simple price chart
The easiest chart to understand is a basic price chart where prices are presented as lines. The closing prices of a certain period (an hour, a day, a week, a month, a year) serve to show the price line, drawn from the beginning of the chosen moment to its end. This simple type of chart is mostly used to quickly display the overview and current status of the prices in a recent period, but more experienced traders tend to draw their own charts, making conclusions and possible forecast.
Candlestick price chart
So-called "Candlestick charts" represent more detailed information about the price. Each candle in this chart displays the opening price, the highest and the lowest price, and the closing price in the end. In order to be perfectly clear, this type of chart uses colors of its candles to indicate either that the closing price was higher than the starting one, usually marked with green, or it was lower than the starting price, which is usually colored in red. The green one is called "up-bar", while the red one is "down-bar".
The candlestick chart has its roots in OHLC price charts, but there's a wide variety of charts that traders can use, which depends on their needs. Another kind of chart that people use is NTB range chart. This one can be a little difficult for crypto market beginners.
Experienced traders usually choose the candlestick price charts because they offer them a lot of practical and functional data, such as candle being spread narrow or wide or showing them where the closing price was relative to lows and highs. There are some popular platforms that offer similar features, such as Bitcoin Wisdom, Zeroblock, Bitcoinity, and TradeBlock.
Conclusion
Once you have learned how to read BTC price charts, it is recommended to start following cryptocurrency price charts on a daily basis. After some time, you will start to see some repeating patterns on the charts, which is usually the price trending behavior.
