Every other day we see someone making absurd Bitcoin price predictions, which mostly falls flat due to the volatile and unpredictable nature of cryptocurrencies. However, despite that technical analysis can still offer a much suitable or better price indication than these self-proclaimed pundits.
TradingView is one such platform which can help traders to analyze the market using proven technical indicators and tools. TradingView has several crypto technical indicators that could help anyone analyze the Bitcoin trend. In this article, I am going to tell you some of the best free tradingview indicators to help you aid your trading along with buying and selling Bitcoins on ByBit, a crypto exchange located in the British Virgin Islands. The platform primarily offers two trading pairs of ETH/USD and BTC/USD.
Why Crypto Technical Indicators Are Helpful
Cryptocurrency prices can either see a sharp rise or a quick fall. For example, sometimes the price can go up to 10-20% and other times it can go down by the same percentage. It is always better to somewhat rely on the crypto technical indicators because they can help you to sense the price action. These indicators are always used by many successful crypto traders. The success or failure of any prediction relies on how well a trader gets through the graph represented by these indicators. Also, there are four common types of indicators, which are given below
1 Volatility – This indicator informs you about a change in price in a given time. It is the most crucial indicator in the cryptocurrency market.
2 Momentum -This indicator tells you the strength of the trend. It can also determine whether a reversal can occur.
3 Volume – This indicator informs you about any change in trading volume, like the number of Bitcoins sold and brought over time.
4 Trend – Trend indicator guides with the direction cryptocurrency market is moving on. A Trend indicator is also called an oscillator.
Best Free TradingView Indicators
1 Bollinger Bands
Bollinger Bands is one of the best Tradingview indicators. It is a volatility indicator represented by three lines. This indicator was named after John Bollinger. Bollinger Bands outer lines signify support and resistance respectively and the middle line indicated in red colour signifies the moving average. The two outer lines are used to establish two different deviations on opposite sides of the price actions. Bollinger Bands could be unpredictable sometimes but they are best to tell whether the market is stable or volatile.
2 Relative Strength Index (RSI)
Next, is the Relative Strength Index indicator. It is also called a momentum indicator. Relative Strength Index is mostly used to indicate whether something is oversold or overbought. For example, when bitcoin is overbought, it indicates that Bitcoin will follow a bullish trend and if oversold, it will simply follow a bearish trend. RSI makes use of a single line which possesses a range from 1-100. Reading more than 70 indicates that Bitcoin is overbought and the same less than 30 indicates that Bitcoin is oversold. The primary goal of the RSI indicator is to tell tops and downs.
3 Moving Average Convergence Divergence (MACD)
And finally, the last indicator is the Moving Average Convergence Divergence (MACD) indicator. It is a trend indicator that has a slow line, fast line and histogram. The slow line, fast line and histogram are represented as MA-slow, MA-fast and MA-period. Unlike RSI, MACD gets plotted in its own scale.
In this article, I have tried explaining some of the best free TradingView indicators that could help you observe what trend a particular cryptocurrency is following. As there is no such method to provide an accurate prediction, these TradingView indicators could give a clear indication about the current trend a particular cryptocurrency is following. Cryptocurrencies have been a hot topic in the field of technology. Since the time these digital currencies have emerged, people started investing in them and saw their funds soaring high. The cryptocurrency market is extremely volatile in nature, as the value of these digital currencies can either get to the peak or to the nadir.