Bitcoin Technical Analysis, Bulls Might Give Up Soon

• Today’s daily candle, although it won’t close for about 4 hours, is now showing a sign that the bulls are failing to break the channel presented to the upsideNext this 4th attempt to do so, on the daily schedule.
• Even though we had a coin flip (50% chance to win, 50% chance to lose) for this trade, the reward vs risk worth selling BTCUSD here. Why? Because the profit potential is twice the risk, for the 1st part of this trade plan, and the profit potential is 4 times the risk, for the 2nd part of the trade plan, as shown in the BTCUSD technical analysis video today

• Additionally, some traders may leave 25% of the position on the possible downside move, as this channel is also a potential bear flag.
• Trade crypto at your own risk.
• See technical analysis and daily crypto news on ForexLive.

Key words: Bitcoin

Bitcoin

Bitcoin is the largest and the first digital currency in the world launched in 2009 by the entity Satoshi Nakamoto. Being a digital currency, a defining feature of Bitcoin is that it operates without a central bank or single administrator. Instead, Bitcoin can be sent through a peer-to-peer (P2P) network, which itself is devoid of any middleman. Instead of being physical currency, Bitcoins represent pieces of digital code that can be sent and received over some sort of distributed network. ledger network called blockchain. As bitcoins are not issued or backed by any government or central bank, they are considered legal tender. Transactions on the Bitcoin network are confirmed by a network of computers (or nodes) that solve a series of complex equations. This process is called Bitcoin mining. In exchange for mining Bitcoin, computers receive rewards in the form of new Bitcoins. Over time, mining becomes more and more difficult, causing subsequent rewards to become smaller and smaller. Given the structure of the code, there will only ever be 21 million Bitcoins. However, in 2020 there were already 18.3 million Bitcoins in circulation. Bitcoin Making HistorySince its launch in 2009, Bitcoin has remained the most popular and largest cryptocurrency by market capitalization in the world. Its popularity has also contributed significantly to the release of thousands of other cryptocurrencies, now known as altcoins. In its early days, the crypto market was originally hegemonic, although currently the landscape contains countless altcoins. Bitcoin has also been controversial since its initial launch. It has been heavily criticized for its use in illegal transactions and money laundering given its decentralized nature. Since bitcoin is impossible to trace, this makes the cryptocurrency an ideal target for illicit behavior. Critics also point to its high electricity consumption for mining, widespread price volatility and stock exchange theft. Bitcoin has been viewed by some as a speculative bubble given its lack of oversight.

Bitcoin is the largest and the first digital currency in the world launched in 2009 by the entity Satoshi Nakamoto. Being a digital currency, a defining feature of Bitcoin is that it operates without a central bank or single administrator. Instead, Bitcoin can be sent through a peer-to-peer (P2P) network, which itself is devoid of any middleman. Instead of being physical currency, Bitcoins represent pieces of digital code that can be sent and received over some sort of distributed network. ledger network called blockchain. As bitcoins are not issued or backed by any government or central bank, they are considered legal tender. Transactions on the Bitcoin network are confirmed by a network of computers (or nodes) that solve a series of complex equations. This process is called Bitcoin mining. In exchange for mining Bitcoin, computers receive rewards in the form of new Bitcoins. Over time, mining becomes more and more difficult, causing subsequent rewards to become smaller and smaller. Given the structure of the code, there will only ever be 21 million Bitcoins. However, in 2020 there were already 18.3 million Bitcoins in circulation. Bitcoin Making HistorySince its launch in 2009, Bitcoin has remained the most popular and largest cryptocurrency by market capitalization in the world. Its popularity has also contributed significantly to the release of thousands of other cryptocurrencies, now known as altcoins. In its early days, the crypto market was originally hegemonic, although currently the landscape contains countless altcoins. Bitcoin has also been controversial since its initial launch. It has been heavily criticized for its use in illegal transactions and money laundering given its decentralized nature. Since bitcoin is impossible to trace, this makes the cryptocurrency an ideal target for illicit behavior. Critics also point to its high electricity consumption for mining, widespread price volatility and stock exchange theft. Bitcoin has been viewed by some as a speculative bubble given its lack of oversight.
Read this termBTC, BTCUSD, Bitcoin technical analysis

Technical analysis

In financial trading, technical analysis refers to the method of studying the previous history and price movements of an instrument, such as currencies, stocks, commodities, etc. based visual tools, in order to predict the future movements of this instrument. Traders who use various means of technical analysis are known by various terms, such as technical traders, technical analysts or technicians. At the heart of technical analysis is the notion that the past performance of a financial asset is potential evidence of future activity. Unlike fundamental analysis, technical analysis is not interested in the causes of price fluctuations; it deals only with its effects. Therefore, technical traders diligently observe the historical charts of the instrument they wish to trade. By applying a number of techniques, technical analysis ultimately predicts how prices will act, sometimes also time-dependent. There are a host of visual tools available to the technical trader, with the most popular of these being included in all major brokerage platforms today. Understanding Technical Analysis Technical analysis itself consists of a number of different methods, which generally fall into two main categories – leading indicators or lagging indicators. Leading indicators refer to charting tools that allow the trader to predict the movement of an asset before it actually happens. These advanced techniques include Fibonacci, pivot points, trendlines, divergence and harmonic trading, and are popular with traders who prefer to trade reversals. Lagging indicators are those visual tools that allow a trader to take advantage of a strong trend, by entering it while it is forming; these tools include the MACD, the Awesome Oscillator, and moving averages. Technical traders don’t all use the same tools of course, and even a trader who uses a particular indicator. For example, the Stochastic Oscillator will likely use it in a different way than another trader using the same indicator or set of indicators, which makes technical analysis extremely subjective. That said, technical trading has merit, and as unintuitive as it may seem, previous price patterns show up time and time again. As an increasing number of traders search for specific market points, the likelihood that these points will matter also increases.

In financial trading, technical analysis refers to the method of studying the previous history and price movements of an instrument, such as currencies, stocks, commodities, etc. based visual tools, in order to predict the future movements of this instrument. Traders who use various means of technical analysis are known by various terms, such as technical traders, technical analysts or technicians. At the heart of technical analysis is the notion that the past performance of a financial asset is potential evidence of future activity. Unlike fundamental analysis, technical analysis is not interested in the causes of price fluctuations; it deals only with its effects. Therefore, technical traders diligently observe the historical charts of the instrument they wish to trade. By applying a number of techniques, technical analysis ultimately predicts how prices will act, sometimes also time-dependent. There are a host of visual tools available to the technical trader, with the most popular of these being included in all major brokerage platforms today. Understanding Technical Analysis Technical analysis itself consists of a number of different methods, which generally fall into two main categories – leading indicators or lagging indicators. Leading indicators refer to charting tools that allow the trader to predict the movement of an asset before it actually happens. These advanced techniques include Fibonacci, pivot points, trendlines, divergence and harmonic trading, and are popular with traders who prefer to trade reversals. Lagging indicators are those visual tools that allow a trader to take advantage of a strong trend, by entering it while it is forming; these tools include the MACD, the Awesome Oscillator, and moving averages. Technical traders don’t all use the same tools of course, and even a trader who uses a particular indicator. For example, the Stochastic Oscillator will likely use it in a different way than another trader using the same indicator or set of indicators, which makes technical analysis extremely subjective. That said, technical trading has merit, and as unintuitive as it may seem, previous price patterns show up time and time again. As an increasing number of traders search for specific market points, the likelihood that these points will matter also increases.
Read this termbitcoin price prediction, bitcoin trade idea