A Simple Guide to Bitcoin Price Charts
Bitcoin has established itself as the leading decentralised currency. It has met Satoshi Nakamoto’s vision of revolutionising the world economy by providing an alternative to centralised fiat currencies. However, it faces a volatility concern. The value of Bitcoin depends on the market demand and supply.
The Bitcoin price movements are important for traders, investors, and any other regular Bitcoin users. It is thus essential that you understand the Bitcoin price charts.
What is a Bitcoin price chart?
A bitcoin price chart is a display of the Bitcoin price over a certain period. The chart allows you to change between different time frames to understand the value of the asset on the platform. The price chart displays the price difference from 1 minute to a month or even several years.
The price chart shows the value of Bitcoin against any given currency or other assets. For example, A Bitcoin price chart AUD shows the value of Bitcoin at a select period against the Australian dollar. It is ideal when looking to trade Bitcoin locally. The Bitcoin price chart USD on the other hand shows the value in the US dollars. It is great for global Bitcoin transactions.
You can also use other assets like gold to determine the value of Bitcoin at the given time.
There are three main types of Bitcoin price charts; line charts, bar charts, and candlestick charts.
A line chart is the most basic of the Bitcoin price charts. It displays the Bitcoin value via a connecting line within the set time frame.
The line chart gives you a quick overview of the Bitcoin market price movements. You can also use the Bitcoin price history chart to establish the resistance and support levels.
A bar chart displays the Bitcoin market movement with a standard price bar for the given period. For example, a 1-hour Bitcoin bar chart would display the standard bar price for every hour within the day.
The bar chart displays information on the opening and closing values. It also shows the lowest and highest values for the same period. You can use the information to inform your trading decisions, like when to buy(/learn/bitcoin/how-do-i-buy-bitcoin) or sell(/learn/bitcoin/how-to-sell-bitcoin) your Bitcoin tokens.
Candlestick charts are an upgrade from the bar charts. They display the highs, lows, open and closing values using candlesticks. They are easy to visualise, making it seamless to read the Bitcoin price movements.
The candlesticks use distinct colouring to show the market movement. You can use the different markets to note whether the market is on a bullish or bearish trend. The different colours support easy noticing of the various price action strategies and settling on a working trading plan.
Other components of the Bitcoin price chart
Apart from the price movement, the Bitcoin price chart has other fundamental details about the token. It contains information on the market cap, trading volume, and circulating supply. All this information is crucial to determine the actual value of the token.
A Bitcoin chart price is the only way to determine Bitcoin’s market value movement. Analyse all the available data on the price chart to help you make the best Bitcoin trading decision.