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There are quite a few different types of Bitcoin charts. These charts provide investors with multi-dimensional views of Bitcoin prices over a certain period of time. Based on information from Bitcoin charts, traders can identify Bitcoin price trends to make the most sensible investment decisions.
Today's Bitcoin chart, over the years, 1 bitcoin = vnd today
1. How to interpret popular Bitcoin charts
1.1. Line Chart
A line chart is a visualization that presents the price history of bitcoin and other assets using a continuous line. It displays a series of data points connected by straight line segments. The line chart is the simplest type of bitcoin chart and usually only represents the closing price of a trading session.
In the chart above, the horizontal axis represents time, while the vertical axis represents price. You can determine the price and date of any point on the chart by aligning that point with the vertical and horizontal axes. Each point on Bitcoin's line chart represents the closing price of a specific session.
1.2. Column Chart
A column chart is a set of price columns, with each column representing price performance within a specific time frame. The column chart visually describes the price fluctuations of Bitcoin within a defined period.
Bitcoin Column Chart
In the chart above, the vertical line on the price column indicates the highest and lowest prices of Bitcoin within a timeframe. The horizontal lines on both sides represent the opening and closing prices.
1.3. Candlestick Chart
The candlestick chart is the most familiar type of chart for Bitcoin investors. It illustrates the upward and downward trends of Bitcoin prices over a specific period of time.
Candlestick charts also have a price axis vertically and a time axis horizontally like column and line charts. The most distinctive feature of candlestick charts is the candlesticks with different colors and sizes.
Bitcoin Candlestick Chart
Each candlestick typically consists of a candle body and 2 wicks, one at the top and one at the bottom. The candle body represents the opening and closing prices of Bitcoin. The upper wick indicates the highest price of Bitcoin within a trading session, while the lower wick symbolizes the lowest price of Bitcoin within the same session.
The color of the candle body also carries significance. A red candle indicates a decrease in the price of Bitcoin, while a green candle shows an increase in the price of Bitcoin. You can learn more about selling Bitcoin when you own a certain amount of Bitcoin for efficient investment and loss prevention. The article How to Sell Bitcoin, where, and to whom will help you sell Bitcoin most effectively.
2. Some Common Price Patterns of Bitcoin Charts
Bitcoin charts can form various price patterns that investors can use to adjust their positions in the market. Price patterns are shapes in Bitcoin charts that may indicate future price movements based on historical trends. Cryptocurrency chart patterns are the foundation of technical analysis and can help traders predict price trends in the future.
Cryptocurrency price models can be divided into the following groups:
Continuous models provide continuous signals of the current trend.
Bidirectional models indicate high volatility and uncertainty in the market.
Reversal models offer reversal signals.
Here are five popular price models you should know when reading Bitcoin price charts.
2.1. Head and Shoulders Pattern
This is a price model depicting both upward and downward trends, with a large peak in the middle (head) and smaller peaks (shoulders) on both sides. This pattern is characterized by temporary low peaks and bottoms on the left shoulder, followed by the highest peak in the middle, then the right shoulder with peaks and highs similar to the left shoulder.
Head and Shoulders Pattern in Bitcoin
2.2. Double Bottom/Double Top Pattern
The double bottom/double top chart pattern occurs when the Bitcoin market breaks out of the same resistance or support level two or three times in a short period. In this pattern, the double bottom is considered a bullish signal while the double top represents a bearish trend. Double bottom/double top patterns often indicate a change in market sentiment and Bitcoin prices are about to change direction.
btc/usdt chart
2.3. Ascending and Descending Triangle Patterns
The ascending and descending triangle pattern is represented by a horizontal trendline connecting peaks and troughs and a second trendline connecting rising peaks and falling troughs. The two lines will intersect at the triangle apex where the price will sharply increase or decrease from the horizontal line in the direction of the slope.
Bitcoin Price
2.4. Cup and Handle Pattern
The cup and handle pattern is a bullish reversal pattern with a cup-shaped bottom and a handle similar to a spoon. The right side of the cup and handle pattern represents low trading volume that may last for a period of 7 - 65 weeks.
The cup and handle pattern in Bitcoin
2.5. The Wedge Pattern
The wedge pattern is a reversal pattern that occurs when trendlines intersect. A bullish wedge pattern is a signal of price decline, while a bearish wedge pattern is a signal of price increase.
Wedge Pattern in Bitcoin
We hope this article has helped you understand some basic types of Bitcoin charts as well as how to read Bitcoin charts. Additionally, you can explore more Bitcoin-themed articles on Mytour.
