Trade Bitcoin Trading

Defining and Identifying Trends in Bitcoin Trading Activities through Examples

A bitcoin trend means prices head one way, up or down, over time in bitcoin trades.

Trends can be interpreted using bitcoin trendlines.

Bitcoin Trend line analysis helps the traders to define the direction of the price. Bitcoin Trend lines connect a series of bitcoin price highs or bitcoin price lows forming a slanting bitcoin trend that represents the general movement of the bitcoin price.

When a line goes up, it's known as a bitcoin trend that's going up – the bitcoin trendline drawn is known as an upwards bitcoin trendline.

For a downwards sloping line this is referred to as a down bitcoin trend - bitcoin trendline drawn is referred to as an downwards bitcoin trendline.

Upwards BTCUSD Trend Line

An upward trendline for bitcoin is drawn beneath the rising pattern by connecting a minimum of two low points. This action establishes a trendline that visually represents the general ascending trajectory of the market price.

The example below shows how bitcoin price moves in an uptrend. The price climbs and forms new support regions as it goes.

Since the btcusd market moves in a zig-zag manner bitcoin traders normally draw a bitcoin trend-line which displays the general upwards bitcoin trend direction.

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An up bitcoin trend occurs when the bitcoin price makes consecutive higher bitcoin price highs & higher bitcoin price lows. Each bitcoin price high is higher than the prior bitcoin price high - higher high: HH, and each bitcoin price low is higher than the prior bitcoin price low - higher low: HL.

Bitcoin uptrend lines gain credibility each time the price touches but doesn't break through them. An uptrend remains intact as long as higher highs and higher lows continue without interruption. A break in this trend line signals a potential trade reversal.

Downwards BTCUSD Trend Line

A downward bitcoin trendline is marked above the pattern that lower highs make in a row: it needs to connect at least two highs, with the newest being lower.

Since bitcoin price moves down in a zigzag kind of manner traders usually draw a line which displays the general downward direction. In bitcoin cryptocurrency market analysis, this overall direction is known as the BTCUSD TREND by traders. This down bitcoin trendline is drawn on Bitcoin chart showing the resistance areas (bearish bitcoin trend market move direction).

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A down btcusd crypto trend occurs when the btcusd price forms and makes a series of lower highs and lower lows. Each btcusd crypto price high is lower and lesser than the previous and prior btcusd price high - lower high, & each bitcoin crypto price low is lower than the previous and prior bitcoin price low - lower low: LL therefore showing bearish bitcoin price movement.

Bitcoin downtrend lines become stronger each time the bitcoin price touches or tries to break through but fails to go past the trendline. A bitcoin downtrend continues until the pattern of lower high bitcoin prices and lower low bitcoin prices is broken, which signals a bitcoin trend line break reversal trade.

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