You might be curious to know what bitcoins are worth in your currency or any currency which you would like. This curiosity may arise from the fact that you own some unit of bitcoins or are likely to purchase them in the future. However, understanding the changes is price trend may not be a very easy or convenient task, especially if you are new to this. This guide can help you to make your life easier by providing simple pieces of advice about predicting the price of bitcoins.
- The present price of bitcoins.
Bitcoins are symbolized using the acronyms as follows: BTC or XBT. The best location to find out the price of bitcoins is the place where you purchased it from. BTC-e, Bitstamp, and Bitfinex are referred to as one of the popular places to buy your bitcoins from. After learning about the prices, you are likely to want to know about the ups and downs of the price.
- Methods of predicting price changes.
The riskiest gamble a person can make is usually at any exchange when they try to forecast the shift in the price. The accuracy of a person being able to forecast it is usually unconventional. Many people have lost their money through trading at exchanges.
There are two methods to aid in the prediction of price developments. These are known as fundamental and technical analysis. Fundamental analysis involves economic activity along with other activities responsible for the price development while technical analysis involves the use of data from the past to make predictions based on it.
- The candlestick chart
In order to perform technical analysis on bitcoin prices, traders usually prefer using the candlestick chart. Candlestick charts are so popular due to their ability in representing the various types of prices with an individual ‘candle’. A ‘candle’ represents closing price along with opening price, highest and lowest price over a fixed period of time.
Moreover, different colors are used to identify the changes in price. Usually, a green body represents an up-bar which shows that closing price was more than the opening price, while a red body represents a down-bar which means that the closing price was lower than the opening price.
Candlestick charts may exist which might not show the time period which might confuse a beginner. However, it contains important information for a trader. If the person is skilled in interpreting such charts, he can acquire a lot of knowledge. He might notice the width of the candles to find out the difference between closing and opening price.
After gathering such useful information, a trader is able to base their biases on whether the market is bullish or bearish.