Best Bitcoin Technical Indicators – List of Top Bitcoin Intraday Indicators for High ProfitsLast Updated Date: Aug 30, 2023
Bitcoin Technical Indicators will make your bitcoin trading experience become more productive and you will feel confident in your investment decision.
The correct forecast of prices can make you a winning-player in trading. But it isn’t that easy; predicting the accurate future price of a particular asset is very difficult.
Such as-if you trade Bitcoins, perhaps you might have also wished for some of the best ways that predict futuristic prices.
Maybe you have tried out traditional approaches too. Luckily your predictions were correct, and you have achieved your goal. But are you confident about your next move using that same formula?
No wonder it is difficult to answer. Especially if the amount you are planning to invest is big, the tension is double.
But relax, because here we have brought some of the best Bitcoin Intraday Indicators that will help you to forecast the bitcoin prices.
What are Bitcoin Technical Indicators?
Technical indicators are widely used by traders, even though whichever the trading sector they belong to.
Traders use these indicators in determining long-term and short term trends that impact market prices.
That’s the biggest reason why the scope of technical indicators is expanding day by day. Traders are increasingly using these indicators to predict the price movements of Bitcoins.
Usually, these forecast the price movements using historical data.
Through mathematical approaches, analysts or traders then predict the next possible action of the price. This action is termed as an “indicator.”
Based on these indicators, traders then decide when to enter and exit the market. Using technical analysis, mostly traders often hit a big jackpot in one shot. It is effective.
Still, many people raise queries regarding technical indicators. Such as- can Indicators predict the future of Bitcoin prices? Let’s discuss next.
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Can Indicators Predict the Future of Bitcoins?
In simple words, the answer is NO. Indicators can’t predict the accurate price movement of any asset. Still, these indicators help provide a proper insight into whether the price will rise or drop.
For example- a price with more momentum in its move is hard to stop. It may create a highly profitable situation for the trader or indicate a drastic loss for the traders.
Still, it is a subject of uncertainty about whether the price will keep rising or fall unexpectedly.
Therefore, the ultimate decision based on technical indicators can’t be wholly accurate.
For example- You had a target that on May 10, you will sell 12000 t-shirts, but you crossed that target, and by that day, you made a sale of more than 13000.
It’s no surprise that the trend is still in a rising phase. But after a day, you observed that the sales have gone from 13000 a day, to 6000 a day. It clearly indicates a significant drop in the trend.
In such a scenario, you will try to empty your existing stock instead of producing new. In a nutshell, indicators only indicate the price movement influenced by a particular trend.
You can’t predict for how long it will stay on its high. That’s the biggest reason why traders should carefully understand these indicators.
Meanwhile, if you are looking for the best indicators for bitcoin trading, let’s discuss it next.
Best Bitcoin Technical Indicators – List of Top Bitcoin Intraday Indicators
Check out the Top 6 Bitcoin Technical Indicators which can help you to make more profits.
|Rank||Bitcoin Technical Indicators|
|3||Relative Strength Index or RSI|
Since you know which are the Best Bitcoin Intraday Indicators, lets have a detailed understanding of these Technical Indicators, one by one.
Moving Averages – Best Bitcoin Technical Indicator
Moving Average is one of the easiest yet effective bitcoin indicators. The indicator smooths the price, providing a clear insight to the traders for a particular time.
However, this indicator predominantly reviews previous price action to forecast the futuristic performance of an instrument.
There are mainly two kinds of Moving averages; the first one is a simple moving average, the second is an exponential moving average.
Though, not every moving average style is recommended for all. It all depends upon the investment plan of a trader.
Similarly, if the trader plans a long-term investment, he must choose a long-term MA, while a short-term MA is the best choice for a short-term investment plan.
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How to Use Moving Average Indicators for Bitcoin?
Moving Average Slopes can provide traders a proper insight into a trend that is likely to impact the prices.
For instance – if MA slop is in a rising phase, that means Bitcoins are in an uptrend, and prices are likely to rise.
At the same time, if the MA slop is in a declining phase, that means Bitcoins are in a downtrend, and prices are more likely to drop.
But you can’t entirely rely on this indicator because Moving Average only provides a quick overview of the trend.
It doesn’t offer you a clear idea of whether the asset will stay in an uptrend or downtrend. You can’t spot the transition of the price to come up with a well-informed decision.
Volume – Top Bitcoin Technical Indicator
Volume is another most helpful technical indicator. Many traders use this indicator to asset the Bitcoin prices. Even though it is one of the most underrated technical indicators, it is still highly effective.
The volume refers to the number of traders who are actively buying and selling Bitcoins. This indicator is quite an effective approach for active traders who mostly prefer day trading.
Let’s understand how this Bitcoin Technical Indicator works and how to take the next trading move.
How to Use Volume Indicator for Bitcoin?
As we discussed above, volume displays the number of traders investing in a particular asset.
For the analysis, see the green and red candle on the chart and compare it with the volume that fluctuates with the time interval.
It provides us an overview of the rising demand and supply of a Bitcoin. Suppose the price of bitcoins moves in one direction; if there are many people behind it, the price will have good momentum.
Similarly, the price is more likely to move in a favorable direction if the volume exceeds.
However, this whole indicator analysis doesn’t provide fully reliable data because negative news about the stock can bring an unexpected drop in the prices.
Even though the trade has extensive volume, the loss probability proportionately increases. Still, many modern traders use it.
Relative Strength Index or RSI – Best Bitcoin Intraday indicator
Relative Strength Index is one of the oldest Technical Indicators. Many technical analysts use RSI indicators to spot price position.
As per this indicator, traders get ideas if the bitcoins are overbought or oversold.
In simple words, it displays the difference between the current price of an asset and its “True” value. Based on the RSI indicator, traders strive to find the best entry and exit points.
How to Use RSI Indicator for Bitcoins?
When the RSI goes above 70, that means bitcoins have been overbought. Similarly, if the Relative Strength Index drops below 30, that means bitcoin has been oversold.
Usually, a pullback is certain once the RSI crosses 70. However, overbought situations display an opportunity for traders to earn profits.
At the same time, traders can also secure a short-profit if there is a downward price move.
Moreover, in an uptrend, the RSI is more likely to take a position between 40 and 90. Whereas in the downtrend, the prices are more likely to take a position between 10 and 60.
The price reversal is possible if the price indicates a new high. Hence, a prompt action becomes essential.
Bollinger Bands – Top Bitcoin Intraday Indicator
Bollinger Bands is another one of the oldest indicators. It was designed by a famous financial analyst- John Bollinger, in 1980. This indicator focused on market volatility.
A trader can easily find the overbought and oversold condition to decide the next move. Moreover, it also provides a proper insight if there is high or low volatility in the market.
Bollinger band indicators usually comprise three lines known as the upper band, the lower band, and a moving average line.
The upper and lower bands display the price action. When there is high volatility in the market, the bands expand and contract if the market is less volatile.
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How to use Bollinger Band Indicators for Bitcoin?
When Bitcoins’ price passes through the moving average and crossing the upper band, it displays an overbought condition in the market.
Meanwhile, if the price is touching the upper band and it happens again and again, that means there is a strong resistance level. In such situations, traders try to sell their assets.
On the other hand, if the price falls and touches the lower band, it displays an oversold condition. In such situations, traders try to purchase more assets due to the strong support level.
It indicates that the Bollinger Band Indicators are best for active traders for short term trading.
This indicator predominantly defines the market volatility so that traders can spot the next price as a favorable price.
Ichimoku Clouds – Best Bitcoin Indicators for Investment
Ichimoku Clouds consists of five different lines. Each line represents an average of the performing asset that fluctuates in a particular time interval.
It helps a trader to determine the next possible action.
For example- traders get an idea of whether to stay in the trade or leave it before the price drops below that and becomes a significant loss.
In the technical analysis of Bitcoins, this indicator is quite helpful as it displays the asset’s overall performance and provides some necessary trading signals. Let’s understand how it works.
How to use Ichimoku Clouds for Bitcoin?
As discussed above, the Ichimoku cloud indicator consists of 5 lines that display the asset’s average performance.
When any of these lines cross each other, they form an area which is known as a “Cloud.” On the base of these clouds, the trader spots the trading signals.
In simple words, these clouds provide traders an idea of whether it is ideal to purchase an asset or leave the position by selling it.
For instance, the current price is moving higher and crosses the Cloud, meaning the asset is in the uptrend.
Similarly, if the trader wants, they can hold the position if the asset is still performing well. Else he can also book the profit and leave its position.
On the other hand, if the current asset is moving down and crosses the below line of the Cloud, that means the asset is losing its position, and it is much better to exit the trade.
However, this indicator can display better whether the trend is strong or not.
Fibonacci – Top Bitcoin Indicators for Investment
The Fibonacci indicator is almost identical to the Moving Average Indicator when it comes to price action prediction.
In simple words, the Fibonacci indicator displays the budding support and resistance levels so that buying and selling signals can be identified.
The Fibonacci indicator is a sum of the previous two numbers where each number is 1.618 times more than its last number.
The obtained value is denoted with the word “phi.” It helps the trader in identifying the trend level. Let’s understand how it works for bitcoin.
How to use Fibonacci for Bitcoin?
In the Fibonacci indicator, the analyst splits the distance between peak and trough by Phi in sequence, following other ratios as well. Other ratios can be 0.382 and 0.236 apart from 1.618.
If you are a professional trader, you probably have observed that daily price reacts to these levels. Similarly, the primary goal of this indicator is to introduce you to major entry and exit points.
Such as-, when there is a potential support level or resistance level, this indicator provides you a comprehensive insight.
However, for new traders, this indicator can be complicated. Still, it is quite useful to find the best entry and exit position.
Bitcoin Technical Indicators – Conclusion
These indicators undoubtedly lift your trading experience with Bitcoin. You can identify the position when a bitcoin is forming a trend of losing its position.
You can find the best entry and exit point in the trading using these indicators. Still, we can’t forget that indicators don’t provide you the accurate information.
All information that these indicators predict about the asset reflects the past performance. Hence, these indicators forecast expectancy only.
These indicators are still highly effective as you can derive special insights that help you a lot in plan-building.
So make sure you don’t rely on a single indicator only, but employee other indicators as well to come up with a well-informed decision.
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