#CryptoCharts101
𧠠Crypto Chart 101: A Beginnerâs Guide to Reading Crypto Charts
Cryptocurrency trading can seem overwhelming, especially when you're staring at a chart full of lines, candles, and indicators. But donât worry â understanding crypto charts is like learning to read a map. Once you know what you're looking at, you'll navigate the crypto world with more confidence.
đ What Is a Crypto Chart?
A crypto chart visually displays the price history of a cryptocurrency (like Bitcoin or Ethereum) over time. These charts help traders analyze price trends and make informed decisions about buying or selling.
đŻď¸Â What Are Candlestick Charts?
The most common type of chart used in crypto is the candlestick chart. Each âcandleâ shows four key price points for a given time period:
Open â Price at the start of the time frame
Close â Price at the end of the time frame
High â The highest price reached
Low â The lowest price reached
đ´Â Red candles show a price drop.
đ˘Â Green candles show a price rise.
đ Key Chart Elements to Know
Timeframe Selector
Choose from 1-minute, 1-hour, 1-day, etc. It defines how much data each candle shows.
Volume Bars
Found below the main chart, these show how much of the coin was traded. High volume = stronger trend.
Moving Averages (MA)
Smooth out price data. Common ones:
50-day MA (short-term trend)
200-day MA (long-term trend)
RSI (Relative Strength Index)
A momentum indicator.
RSI > 70 = Overbought (might drop)
RSI < 30 = Oversold (might rise)
Support and Resistance Lines
Support: Price level where an asset tends to stop falling.
Resistance: Price level where an asset tends to stop rising.
đ§Â How to Read a Basic Crypto Chart
Identify the trend (uptrend or downtrend).
Check volume â is it supporting the trend?
Look at candlestick patterns â are there reversals or breakouts?
Use indicators like RSI or MACD to confirm your insights.
â ď¸Â Tips for Beginners
Start with major coins like Bitcoin or Ethereum.
Donât rely only on charts .
