the Bitcoin exchange rate and its analysis tendrils many of the indicators. But terms like Moving Average Convergebce/Divergence (MACD) or Ichimoku-Kinko-Hyo-let the cloud of self-inclined readers cringe. We remedy the situation.
By Phillip Horch
On 7. October 2019BTC$8.551,82 5.17%part Facebook Twitter LinkedIn xing mail
The detailed technical analysis of the Bitcoin price can not only break those unfamiliar with the Subject header: What is the Stock-Flow Ratio? In what spheres of the Ichimoku cloud is hovering? And as you can read from this, forecasts for the future Price of crypto-currencies?
1. Basics of the Bitcoin-price-analysis
Who deals with the technical analysis of the Bitcoin price, you can’t get past a basic vocabulary. Here is a small list of important terms, especially in the following lines is important.
Candlesticks/candle: to Show the upper and lower limit of the rate of gradients in a certain period of time. You can put them in almost any way. There are hourly, daily and weekly candles.Moving average: the average price of a certain trading volume.EMA: The Exponential Moving Average (EMA) or exponentially moving average describes a moving average with a focus on timeliness – it is here that new values get more weight.Bullish: A Positive Market Sentiment. The “bulls” of rising rates.Baerish: Negative Market Sentiment. The “bear” of a falling Bitcoin price.2. The Stock-to-Flow-ratio
The Stock-to-Flow ratio is a indicator that one applies, usually, for the evaluation of raw materials as Gold. However, you can apply it to its digital equivalent: the Bitcoin market price, the Stock-to-Flow relation can be transferred.
The underlying value is the available quantity of an asset, so all units (in our case, BTC or Satoshi’s) for a currency, the time limits on the Blockchain, and its decentralized existence. Short of the floor, said:.
[view] Bitcoin, Ethereum, Ripple, IOTA, and the most well-known crypto-currencies on eToro trade. Why eToro? Free Demo account Mobile Trading App; payments by PayPal; a wide selection of various financial products (crypto-currencies, stocks, commodities, ETFs, foreign exchange, indices); Social Trading with a big international Community.
open Now free account
The Flow, in turn, the amount of Bitcoin to be added annually to this floor. The ratio of the two values in the Stock and Flow describes, finally, the amount of time that it would take at the current speed, the maximum of is reached of the total inventory. Ultimately, the Stock-to-Flow ratio describes the scarcity of the asset – the higher the Stock-to-Flow ratio, the less the Good.
Gold is a scarce commodity. Bitcoin also.
The maximum amount of BTC is set by Protocol – the money system is deflationary designed. Therefore, the rare is called Good by analogy to the most famous of all precious metals and also as a digital Gold. Be Stock-to-Flow ratio increases. Currently “mining” Miner approximately 657.000 BTC per year, per Block to 12.5 BTC get Miner. Currently 17.987.262 BTC are in circulation, the Stock-to-Flow ratio is just under 27,37 years.
This ratio will rise significantly next year, in may 2020, the next Halving is due. The reward for miners is cut in half to 6.25 BTC per Block. The Stock-to-Flow ratio will be around 53 years and on the Gold (currently 58 years old) approach. At the next Halving, Bitcoin will reach an unprecedented value of over 100.
What does this have to do with the Bitcoin price?
Bayerische Landesbank recently published a study in which she puts on the bull horns: Due to the upcoming Halvings, and the associated increase in the Stock-to-Flow ratio, the analysis model, BayernLB is forecasting a sharp rise in the Bitcoin price: a whopping 90,000 US dollars.
3. Ichimoku-Kinko-Hyo-indicator
a shortcut To the right of the tongue-breaking name of Ichimoku-Kinko-Hyo-indicator, something that is traders the name of “Ichimoku cloud” by. It describes the market mood as well as important supports or Resistances of the Bitcoin exchange rate. The key lines are the following:
Conversion Line : A mean value that describes the average of the High of the last nine days and the Low in the same period of time. In the technical analysis of the market, she describes (among other things) the market trend . the Base Line : Based on the Conversion Line and the Base Line is the average of the High and Low of the last 26 days. The price of Bitcoin drops below this line, the as a lot of bids due soon Signal, if it exceeds, you will be deemed to have bullishes Signal. the Lagging Span : it represents the Bitcoin rate, however, by 26 days in the past moved.
Now you have to do is carry out some further calculations and you can see the Ichimoku cloud on the horizon. It is the average of Conversion Line and Base Line , and receives the first limit ( Lead 1 ) for the so-called Kumo-cloud .
Finally, we calculated the average of the High and Low of the Bitcoin-price of the last 52 days, and carries him with 26 days shift in his Chart ( Lead 2) . Together, Lead 1 and Lead 2 to form the Kumo cloud and combine with the Lagging Span to Ichimoku cloud.
What does this have to do with the Bitcoin price?
That when trying to understand the Ichimoku cloud, first of all, the head smoker, is not surprising. So it is a hodgepodge of price indicators, which goes beyond popular Tools, in addition to.
But this is precisely where their strength lies: it gives traders a wide range of signals to the Hand to deal with future scenarios for a possible Bitcoin exchange rate-Storm. (In Detail you can read about here).
4. MACD – Moving Average Convergence/Divergence
The MACD is an indicator that the ratio of the three sliding mean values refers to:
MACD-line: Records the difference between the EMA (see above) over the past twelve measurements and EMA over the last 26 measurements.Signal line: EMA of the MACD line over nine measurements.Histogram: difference of the two lines.
The MACD describes so, in the end, Trends and to give you information on the longer-term course development.
What does this have to do with the Bitcoin price?
Who with the MACD handlingt, from which it derives certain signals to the dealing with of the largest crypto currency by market capitalization. The rule of thumb is simple: Cuts the MACD line, the signal line from above, a sell signal is set, contrary, can be interpreted as a buy signal.
5. The Golden cross
the last Signal, on the some traders nailing the Bitcoin price, is the Golden cross. Here, too, a sliding mean values, the one or the other may feel like the MACD recalls. The Golden cross of two signals – the MA50 and the MA200 meet. This is the average Bitcoin price over the last 50 or 200 days. They meet and together form a cross, to recognize analysts here is a bullishes Signal. Here are analysts to recognize a reversal of the trend: The bear market will become a bull market.
What does this have to do with the Bitcoin price?
It may be obvious: Is the bear market to the bull market, can you rate this as a buy signal. Quite different by the way its opposite: The Death Cross beer the bear joyful the cops and ditch the Bitcoin rate in the depth. Last the Latter opened in March 2018, a negative Bitcoin rate history. The last Golden cross proved to be as poor an indicator.
More:
Bitcoin price on dive: Buy or run? Study: These countries are the leaders in the crypto-Trading crypto-hedge Fund Manager Dr. Philipp kaller Hoff to investment strategies in the crypto-market#crypto-market#analysis#Trading
