Reading cryptocurrency analysis requires some understanding of basic tools and concepts. Here are some simple steps to help you do that:
1-Charts:
Candlestick Charts:
They are commonly used and help track price movement over time. Each candle represents a specific time period (such as an hour, a day, or a week) and shows the opening, high, low, and closing price.
-Line Charts: These show price movement in a simple way and are useful for identifying general trends.
2-Technical Indicators:
Relative Strength Index (RSI):
Measures the speed and movement of price changes. A value above 70 indicates that the currency may be “overbought,” while a value below 30 may mean that it is “overbought.”
-Moving Averages:
Indicate the general direction of the price, as the intersection of the averages can indicate buying or selling opportunities.
-MACD:
Used to assess momentum and show changing trends in price.
3- Fundamental Analysis:
- Follow news and updates related to digital currencies. Events such as partnerships, technical updates, and regulatory changes can affect prices.
4- Support and Resistance Levels:
- Support Level: is the price at which demand is strong enough to stop the decline.
- Resistance Level: is the price at which there is strong supply that prevents further rise.
