Few things have captured the interest of the 21st-century investor as much as cryptocurrency. This decentralized digital currency has witnessed a massive surge in popularity over the last decade, and the trend is not about to die out anytime soon despite the existence of several myths about the blockchain technology on which cryptocurrency is built. For the new trader, understanding and capitalizing on the cryptocurrency market can be difficult. So if you are wondering how to read cryptocurrency charts, here’s our quick-and-easy guide on how to understand cryptocurrency charts and track the market.
This is the simplest way in which price information is depicted, and one of the best trading charts for cryptocurrency. This is useful for giving a quick overview of the price history of any cryptocurrency. It is drawn using the closing prices of the cryptocurrency at each point in time. Reading this chart is no different from reading any kind of price chart and you can make predictions in the same way as you would for the foreign exchange or stock markets.
One of the most common cryptocurrency charts is the candlestick chart, which uses red and green ‘candles’ to show the state of the market. This is the type of chart used on cryptocurrency exchange sites such as Binance or Coinbase, which have the best live cryptocurrency charts. You can analyze the chart by time frame, which you can select yourself. Red candlesticks indicate a price drop and increased selling pressure, while green candlesticks indicate a price rise and increased buying pressure. In addition, the ‘wicks’ at either end of the candle indicate price extremes. The bottom wick indicates the lowest price during that particular period, while the top wick indicates the highest price during the same. It is worth your while to invest some time in understanding how to read candlestick charts for cryptocurrency.
Cryptocurrency technical analysis charts
If you are looking for handy crypto technical analysis charts, there are several online platforms that provide users with technical analysis. Cryptowatch provides traders with comprehensive charts and information on how a particular cryptocurrency is performing. Coinigy is another such service – a paid one, but one that allows traders access to more in-depth analysis tools. Perhaps the most popular tool is TradingView, where users can start off with a free plan and upgrade to a paid one for access to new and advanced features.