Who would say that when they exchanged their fiat money to Bitcoin or any other altcoins, their money would diffuse out of thin air in a snap? They are crazy! It definitely won't. Aside from that, it will also turn their money into double or 200% in 24 hours. The people who would tell you those things are obviously scamming you already. This is because we do have the Resistance and Support indicators in the graph analysis of cryptocurrencies.
Support and Resistance are making sure that the price of an asset not to over-price neither lose its actual value over a short period of time.
In the stock market, supprot and resistance are the predetermined levels of the price of a commodity (or a digital asset) in which it is thought the price tend to stop and reverse. The levels are denoted from multiple points of the price without breaking through the level.
Support and resistance also act as a barrier that makes the price of the cryptocurrency stable though it is regarded to be volatile, it still manages to make your investment safe at a certain period of time through the stop loss which you will be the one to set when you actually start doing the trading by yourself.
The easiest determinant to find the support and resistance line from the graph is the horizontal line or almost a straight line that it generates from the graph.
Let's put these identifiers into action when we see an actual graph and let's take Bitcoin as an example:
Let's zoom-in to a 7-day graph analysis of what BTC has been doing in the past 7 days (May 18 - May 24, 2019)
Looking at the graph when it had a break-out last May 19, 2019 passing the initial $7,000 - $7,200 barrier. It then moved to a higher level of $7,900 - $8,100 new barrier. This only means that Bitcoin is trying to pass the $8,100 already but still cannot break and still stable with the lowest value of $7,500 as the lowest support line. It only means, at this point, if you are just much as updated and would not use a stop loss, the fiat value of your BTC would not drop its value down to $7,500. If we couldn't watch our holdings 24/7 then it's a must to have a stop-loss (set sell) @ $7,500.
Once Bitcoin's USD price spiked or dipped into a whole new barrier then check it by yourself which would let you create another values of resistance and support to analyze it by yourself.
This technique will let everyone realize the tolerance level of how your principal amount would earn or lose. If you would do a day trading then please choose 24 hour interval to see the actual values of how your chosen altcoin would behave in the market. You will then be able to see if your $7,000 BTC purchase would spike or dip a $100, $200 or even $500 value overnight. This is just an example if you bought 1.0 BTC @ $7,000 a week ago. It already had a profit now of $800 in a few days.
Let's now take a look at Bounty Tokens (BNTY) which is now the main currency being given as tips here on publish0x. Effective today May 24, 2019.
The best view to look for the resistance and support level is thru the 7-day interval period of any cryptocurrency you choose to consider buying.
Since we are getting it FREE here on publish0x then who are we to complain! Let's then take a look how lucky we are getting this currency for free!
Although BNTY in USD and BTC value had a break-out during that huge spike at the screenshot, it still managed to go back to $0.0048 to $0.0058 level. So the value of $0.0055 will have a (+,-) $0.0005 only. So this coin is really stable at the moment despite the rally of other altcoins.
The Real-Time price of BNTY in USD and BTC respectively according to CoinGecko is:
Again you've come this far reading my blog and learning how I analyze the graph of the coins that I choose. I am not gifted with the precise technical analysis but I do have my own approach for me not to lose a bunch on my daily trading activities.
Thank you so much for dropping by and getting updated with the trend happening nowadays.
Check out my other techniques that I have shared exclusively here on publish0x:
Current Cryptocurrency Trading Volume - The Summation Of Transactions From All Exchangers
Cryptocurrency Pairing - The Very Basic Of Trading
If you have something to share like this and you want to earn Bounty0x Tokens (BNTY) and HYDRO at the same time, click this link, register and apply to become an author and post your first blog now!
https://www.publish0x.com?a=LYqaQPZenj
