Unless you’ve been living on Mars for the past few years, the likelihood is that you’ll have heard a fair amount about bitcoin – you may have even thought about investing. Bitcoin is by far the leading cryptocurrency, with more and more people taking the leap into the unknown in the hopes of making some substantial gains. Although the currency is highly volatile, the risk has paid off for many investors. If you’re considering buying into bitcoin, or have recently already done so, then you’re sure to want to keep track of its worth. This is where bitcoin charts come in.
What Are Bitcoin Charts?
Bitcoin price charts allow you to see how the currency’s value is shifting. These charts provide data which will allow you to try and predict the near future by analysing trends in data such as the historical price fluctuations of bitcoin and volumes of bitcoin on the market. Although forecasts can be risky business, it’s all part and parcel of the trading game and history certainly tells us that many investors have come up trumps when it comes to bitcoin. If you’re looking to invest in it yourself but are not sure how to go about it, you can buy bitcoin in Australia from Bitcoin Dealers in person and in cash, making the whole process easy and secure.
Types of Bitcoin Charts
You can find a range of bitcoin charts on an online bitcoin price index. These provide an overview on the various values of bitcoin over longer periods of weeks or months as compared to standard currency. There are two essential charts that beginners should come acquainted with in order to remain on top of trends:
Price Charts: A simple line pricing chart tracks the value of 1 bitcoin in relation to another non-cryptocurrency, such as pounds or dollars, over a given time period. This will allow you to see how closing market prices have been fluctuating recently, with a line showing peaks and troughs in value by time – either monthly, weekly, daily or hourly.
Candlestick Charts: You will also be able to find slightly more complex candlestick charts. These provide additional information along the price line in the form of color-coded bars. These not only show the closing price, but also the opening price along with the highest and lowest values in a given timeframe. The color of the bars provides a quick indicator of whether prices have risen or fallen – respectively green or red – whilst the length and direction of the stick indicate the intensity of a rise or fall in value at a glance. This provides a comprehensive overview of whether prices are plateauing, rising or falling across any given time period.
Analysing Bitcoin Charts
The things to look out for when analyzing bitcoin charts are any major changes that have occurred within a given timeframe. For example, if the value saw a sharp hike or drop on a particular day, you can begin to consider what external factors may have been the cause, such as major trading transactions or political events. You can then utilize this data to try and predict what changes might happen in the future and try to stay ahead of the curve by selling your coins before the peak turns into a trough.
