One such well-known cryptocurrency is Bitcoin. To invest in it, you must first understand the technical analysis that underpins Bitcoin. After all, trading cryptocurrencies without technical analysis is a dangerous guessing game!
This blog is somewhat technical, but it is intended to help beginners understand the fundamentals of Bitcoin and how technical analysis can assist them in making informed investment decisions. If you want to be a profitable investor in
If you are new to the world of blockchain and cryptocurrency, it can be difficult to distinguish between trustworthy and untrustworthy cryptocurrencies.
Several cryptocurrencies, dubbed “meme coins,” such as Dogecoin, Shiba Inu, and Poocoin, have recently emerged and cost novice investors a significant portion of their investments.
Bitcoin, on the other hand, is a far safer (if not the safest) cryptocurrency to invest in. It is the first deflationary crypto token to exist, and it has recently reached an all-time high (ATH) of more than USD 65,000 per Bitcoin! Here are some more reasons to believe in Bitcoin:
1. The majority of decentralized cryptocurrency
2. Token deflationary
3. Whitepaper made available to the public
4. Mechanism of Proof of Work (PoW)
5. Tokenomics at its finest.
To begin with technical analysis, you will require a platform that provides dependable and advanced tools. WazirX, an Indian cryptocurrency exchange backed by Binance, the world’s largest cryptocurrency exchange, provides all of the tools and more for a beginner to get started with Bitcoin technical analysis.
For beginners, here are two indicators to get started with:
The MAW is used to gauge the overall sentiment felt throughout the market. This is accomplished by analyzing price fluctuations in the presence of the short, medium, and long-term moving averages. The moving average is calculated by simply averaging the data points over a given time period.
It should be noted that MAW should be used to analyze price movements over shorter time periods (days or hours) rather than longer time periods (months or years).
2.Relative Strength Index (RSI)
The RSI is a “momentum indicator.” It calculates the speed and change of price movements by comparing the magnitude of recent growth to recent downturns. It fluctuates between 1 and 100. It is widely assumed that the RSI should be less than 30 for buying and greater than 70 for selling
3. Williams Fractal
The ADX formula is used in this momentum indicator. While ADX can assist you in delving into the micro, Williams Fractal is an excellent indicator for a quick macroscopic view of momentum trends. The strength of an asset’s upward and downward price movement is displayed by this oscillating indicato.
Fundamental Analysis vs Technical Analysis
The idea behind fundamental analysis is that the price of an asset is determined by underlying factors such as the company’s performance, management, and market size.
Technical analysis, on the other hand, does not take into account any economic or fundamental factors. It focuses solely on the chart and indicators such as RSI, MACD, and candlestick patterns.
