What and how do Bitcoin charts work?

30 Sep 2015

Bitcoin Chart Analysis


As with any tradable asset there are prices and markets which change according to sentiment or fundamental shifts in the assets core use. With Bitcoin, or crypto currencies, perhaps the most important fundamental change is how Governments treat it, through tax and through regulation. Charts show you a representation of their movements over specific time period.

Price Charts

There are three main types of charts we show on our website. The first being a pricing chart, which is important as it shows how the price changes over time. The trading data can be represented in many different ways graphically although perhaps the most useful is in the format of OHLC – or open high low and close. OHLC data shows the starting price of the time period (open), the highest price in the time period (high), the lowest price in the time period (low) and the closing price in the time period.

This is represented by simple colored blocks with lines coming out of it. The block represents the open or the close, and top and the bottom of the vertical line represents the high or the low. If the open is higher than the close the block is colored one color, usually red or black – and so signalling a falling price in that time period – and if the open is lower than the close the color is green or white signalling a rising price during that period.

The vertical lines coming out of the boxes show the level of volatility during a time period, the more the lines vary the more variable the price has been showing uncertainty as to what the market participants, traders or investors believe is the correct price.
If you don’t want to represent this data this way then you can simply just plot the open or the close just to see a straight line graph.
We also show you trades as they come in which you can see on our live streaming pages for Bitcoin and other crypto currencies – keeping you up to date with the latest Bitcoin price moves and volume.

We also show volume pie charts by exchange to show you were the volume is flowing, For example the Bitcoin Litecoin BTC/LTC trading pair - If you want to see where the volume is highest you can have a look at the orderbook or look at our volume pie chart which shows you which exchange has the highest liquidity. If Bter is has only traded 20% of the 400 BTC volume in the last day whilst Cryptsy has traded 80% then you would probably want to pick the latter as the liquidity is higher, most likely meaning that the Bid Ask spread is lower and so the price you pay, or liquidity premium on the Cryptsy exchange is less.

We also show you streaming data on each individual coin page that will give you insight into the frequency that a particular crypto currency is traded across all the exchanges. In the case of Bitcoin this might be numerous times per second, and with Litecoin too, but with other smaller less well known crypto currencies it might take a lot longer between trades.

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