To check the price of an asset at a given time, you just have to look for the time you want on the X-axis and look straight up to see the price of the asset at that moment.

You can dig a little deeper by analyzing the slope of the lines between two sets of price points with the same time period. The steeper the angle of the line, the faster the price went up or down, which may indicate how strong the price action was.

Line charts, however, only tell you so much. Candlestick charts provide far more information. Below, you can see what a candlestick looks like, and what it tells you.

Support and Resistance

You may often see straight lines overlaid on a chart, crossing the apexes of hills or valleys—particularly when someone is analyzing price action or trends.

How to read crypto numbers

Price changes aren’t entirely random. They are more likely than not to follow patterns, which might be lengthy or short-term.

Market experts are more concerned with the price of a coin itself, rather than every circumstance that influences its price. Market behavior can be predicted because traders react the same way whenever they see a particular trend.

Six basic tenets of Dow Theory are necessary to know how to read real-time crypto charts.

Three Market Movements

  1. The major and main movement of a market is referred to as such. These are market trends that can continue anywhere between a year and several years.
    The primary trend might be a bullish movement or a bearish movement.
  2. The medium swing is a secondary or intermediate reaction that can last anywhere from ten to three months.

How to read bitcoin numbers

  • The public participation phase – The public participation phase, also known as the absorption phase, is when the rest of the market starts following knowledgeable investors.
  • The distribution phase – The distribution phase happens after the speculation of the absorption phase. Knowledgeable investors begin to redistribute their holdings in the market.
  • The market incorporates new information as soon as it becomes available

    The price of the asset changes to take any new news into account. Asset price is an accurate reflection of the hopes, fears, and expectations of the market participants.

    How do you read crypto numbers

    When you create a transaction, you will send the entire balance of your address. Of course, this doesn’t all go to your friend. They receive the 0.1 BTC as intended. The remaining 0.9 BTC is sent to your change address.
    This address is fully in your control. This is unique to Bitcoin and its derivatives – Ethereum and XRP wouldn’t send out the entire balance of an address, for example.

    3. The fees

    Most cryptocurrency networks have fees associated with transactions.
    Bitcoin is no different in this. In this section, you can see how much the transaction has cost in fees. These fees are paid to those validating blocks for the network, which are filled with transactions.

    4. The receiving address(es)

    In this section, we can see which addresses are the intended destination of a transaction.
    For each address, we can see how much they are receiving.

    In the Bitcoin chart above you see we have the zoom feature at the top left and it is set to “ALL” to show the entire lifetime of tracking. If we check another option like 1y (1 year) or 3m (3 months) we get the same type of graph but just zoomed in to give us more detail. This is super helpful to see different trends for the coin quickly.
    As you can see the charts for 3m and 1 day look quick different, but they have all the same data.

    Another useful feature of most charts is the ability to hover over the line chart and get the data for that given period. As you can see in this 1 day chart I hovered over that quick spike in price and it gives me the exact data for that peak.

    It determines if crypto has been overbought or oversold by comparing the magnitude of recent gains to recent losses.

    The formula looks like this:

    RSI = 100 – (100/(1-RS))

    While the RSI is a useful indicator, it is not immune to misleading buy and sells signals, which can be caused by a huge rally or a significant decrease in the cryptocurrency’s price. This is why you should use RSI in conjunction with other indicators to forecast a coin’s future price.

    Did You Know? RSI analyses the pace and change of market movements. It’s a leading indicator that Technical Analysts use all around the world.

    It is an important part of crypto technical analysis.

    What Are Support and Resistance?

    When it comes to interpreting bitcoin candlestick charts, support and resistance levels are key.

    Compared to a line chart, which shows the price close to close, candlestick charts show four times the amount of information, displaying the close, open, low and high price of a given period.

    By having this extra information, you can study ‘how’ price has moved over a period of time compared to just seeing where the price closed.

    The red and green portions of a candle are termed the ‘body’.

    The body of a candlestick represents the difference between the opening and closing price of the currency for a given time period.

    If the opening price of the candle is lower than the closing price, the candle body color is green. If the opposite occurs, and the opening price is higher than the closing price then the candle body color is red.

    The black lines above and below the candles are called ‘wicks’ or ‘shadows’.

    Dollars in the screenshot above), and the percentage movements of gains/losses for the day.

    The same as the above mentioned applies for all of the fields below with the exception of the FIAT wallet – there you can only hold the supported FIAT currency of your FIAT wallet – this depends on your location. You can find more information about that in this article.

    • Daily Balance Movement

      • Right below the total balance is the daily balance movement in the currency you’ve picked. This field represents the gains or losses for the day in the currency you’ve picked.

    This means that a market analyst can focus on the price of a coin, rather than every single variable that moves the price of a coin.

    Crypto markets go up and down in particular patterns. Being able to recognize the patterns of the market makes it possible to predict market behavior.

    6 Tenets of Dow Theory

    The Dow Theory rests on six essential tenets:

    1. The market has three movements
    2. The major market trends have three phases
    3. The market incorporates new information as soon as it becomes available
    4. Stock market averages must confirm each other
    5. Trends get confirmed by volume
    6. Trends exist until it is shown that they have ended

    Read on to learn more about each of the tenets.

    The market has three movements

    The main movement of a market is called the primary movement.

    Depositing Crypto

    Clicking the “Transfer” button on the main screen will open the selection menu, where Deposit and Withdrawal will be available as options. When “Deposit” is selected, two depositing options will be displayed – Crypto Deposit and Fiat Deposit.

    For Crypto Deposits, select the coin you are looking to deposit and from there the details for your wallet will appear on the screen.

    Initiating a Fiat Deposit will bring up the Fiat wallet depositing menu, which then provides the details for a bank deposit.

    Withdrawing Crypto

    Selecting “Withdraw” brings us to a similar screen that allows withdrawal of assets, be it crypto directly or in fiat.

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