As we all know, trends play an important role in Bitcoin trading, which gives investors the opportunity to make decisions using the methods in price data, rather than simply rising or falling. It is obvious that the price not only follows the trend line, but also frequently moves back and forth between two trend lines. This is the so-called "trend channel", which may be one of the most common concepts used in technology price analysis. Therefore, some novice investors asked, what about the trend chart of Bitcoin? Next, let's have a look.
What do you think of Bitcoin trend chart?
Look at the K line.
The trend chart is the k-line chart. The k-line has the following conditions:
1. Dayang line: Dayang line is a red entity column. The highest price is the closing price, and the lowest price is the opening price. Generally, the occurrence of Dayang line means that there will be a wave of market;
2. Middle male line: middle male line contains upper and lower shadow lines, upper shadow lines represent pressure, and lower shadow lines represent support; The longer the upper shadow line is, the greater the pressure of price rise. On the contrary, the longer the lower shadow line is, the stronger the lower support is, and the price is not easy to go down;
3. Baldheaded male line: only the lower shadow line of the bald male line has no upper shadow line, indicating that the lower support is strong, which generally indicates that the market will be better in the later period;
4. Barefoot positive line: there is a shadow line on the barefoot positive line, which is suppressed by the short side in the process of stock rising, and there is pressure to break through;
5. Small male line: the small male line means that both sides of the air force and air force compete fiercely, swallow each other, and do not compromise each other;
6. T-shaped line: There are two types of T-shaped lines, the first one indicates that the air force is strong; The second indicates that many parties are rising actively.
Analysis Method of Bitcoin Trend Chart
Bitcoin market analysis is carried out according to several aspects, including market level and data usage method.
1、 Market level
In this year, we will find that the performance of the whole market is different from that of the past few years. Taking the bull market in 2017 as an example, from the performance of the whole market at that time, we will find that the performance of the whole digital currency market is that all virtual currencies are rising, regardless of the leading Bitcoin, Ether, Lite, BCH and other mainstream currencies, except platform currencies, Other currencies, whether mainstream or counterfeit, have never run past Bitcoin.
This is because the logic of the rise before 2017 is essentially driven by retail investors. From 2011 to 2017, the scale of Bitcoin was actually very small. For rich and large households, the market value of Bitcoin could be doubled by a little money, which also led to the sharp rise and fall of virtual currency in the initial stage.
Until the end of 2017 to the beginning of 2018, the number of external retail investors entering the market reached a peak. When new retail investors saw that "the price of Bitcoin is too high, while the price of mainstream and counterfeit currencies is low, let's invest in currencies other than Bitcoin". Therefore, there was a surge in tens of thousands of dollars and many rich people myths.
2、 Data usage
1. Ratio of the total number of shares held by more than one person to the total number of shares held by less than one person
The so-called ratio of the total number of long short holdings actually reflects the mentality of most retail investors in the market, because the total position value of the multi parties and the short parties in the market is equal. When the total holding value is the same, the average holding value is different, which means that if a party has a large number of shares, the lower the average holding value of that party, and the large number of retail investors of that party. Therefore, when the ratio of the total number of long and short holdings exceeds 0, it means that retail investors are more optimistic about the long run, and when the ratio of the total number of long and short holdings is less than 0, it means that retail investors are more optimistic about the short run.
(1) The ratio of the total number of long short holdings is negatively correlated with the market. When the market falls, the ratio of the total number of long short holdings is still growing, or when the market grows, the ratio of the total number of long short holdings is still decreasing, the market probability will continue the previous trend.
(2) When the total number of long and short holdings is high or low, the probable market will have a pin situation.
(3) When the market is at a high level and the ratio of the total number of long short holdings increases significantly, the market probability will reverse, but when the market is at a high level and the ratio of the total number of long short holdings is moderate (close to 1:1 ratio), there is a high probability that the market will continue to rise.
2. Total contract shareholding
The total amount of shares held by contract can only be seen when this data is viewed together with other data, so this data is grouped with the trading volume for analysis. The so-called total contract holdings refer to the total positions of all parties and short parties in the corresponding currency delivery contract and perpetual contract.
Because in the market, the total position value of the long and short is the same, and the number of short orders sold is the number of multiple orders bought. Therefore, the change in the total number of contract holdings also represents the change in the total position of multiple parties or short parties. The trading volume refers to the total trading volume of the currency contract in a certain period of time. The statistics of this data cover all delivery contracts and perpetual contracts.
(1) When the market is at a low level, the total position is increasing, and the trading volume is generally small, and there is no amplification, the future market probability will rise.
(2) When the market is at a high level, the total position has repeatedly reached new highs, but the market is in a sideways or negative decline state when the trading volume is enlarged, and the future market rate will probably fall sharply.
(3) When the trading volume increases and the position at the same time decreases, it indicates that more orders have been closed or the position is open.
3. Average position ratio of elite long short
The data of the average position ratio of the elite long short mean value represents the real-time situation of the average value of funds in the guarantee account used by the top 100 traders with shareholding experience in the exchange. Therefore, through these data, we can intuitively feel the position change of head users.
When the market has been falling for a long time and started to run sideways, if the double position ratio has been rising (above 30%) and maintained at a high level, and there is no obvious decrease in the data, the future market probability will continue the previous trend until the data decreases from a high level to an appropriate level, and vice versa.
Speaking of this, I believe you have a certain understanding of how to look at the Bitcoin trend chart. In general, Xiaobian also reminds investors that although investing in Bitcoin is a very popular project, investment is accompanied by certain risks. Before entering the site, you must have a comprehensive understanding, learn more about Bitcoin, and do not invest blindly.