Promising Crypto Investment Opportunities, Here's How To Do Bitcoin Technical Analysis To Profit

Illustration. (Photo: Doc. Antara)

JAKARTA - The current decline in the price of crypto assets does not affect investor interest. Even the number of crypto investors will continue to grow in 2022. However, there is an important thing that investors must understand, namely the technical analysis method of Bitcoin. The Commodity Futures Trading Regulatory Agency or CoFTRA has released the latest report regarding the number of crypto asset investors in Indonesia and the trade transactions collected until May 2022. The report stated that from the end of December 2021 to May 2022, there were an additional 3 million investors from 11.2 million to 14.1 million crypto investors. Meanwhile, for the number of crypto asset trading transactions in Indonesia, during the period January to May 2022 has reached Rp 192 trillion. When compared to the number of transactions in 2021 for the same period, there is a slight decrease. In May 2021, the number of crypto asset transactions reached IDR 370 trillion.

The Fall of Crypto Assets is a Cycle

The decline in Bitcoin prices is considered by crypto industry players, Indodax to be reasonable. The CEO of the largest and most trusted crypto exchange platform in Indonesia, Oscar Darmawan explained that through technical analysis of Bitcoin, it can be seen that what is happening now has in fact happened in 2018 and 2014. “After Bitcoin experienced an All Time High in 2013, 2017 and 2021, there will be a significant price decline in the following year followed by a decline in other cryptocurrencies. We can see how the decline occurred in 2014, 2018 and now in 2022," said Oscar, in his statement. According to him, this four-year cycle is often used by people to buy and collect crypto assets. Because when the price of Bitcoin drops, the price of other crypto assets usually follows suit. The current bearish moment is precisely the moment that long-term traders often use to collect crypto portfolios by buying the crypto they want at a low price,” explained Oscar Darmawan. At Indodax alone there are more than 200 types of crypto assets traded. However, not all crypto assets have experienced a decline in the same way that Bitcoin did. There are several other crypto assets that actually rise when the price of the majority of cryptocurrencies is down, namely derivative type tokens. Derivative tokens are tokens that move against the price of crypto in general. Indodax provides derivative tokens such as HEDGE and BEAR whose prices will go up when Bitcoin prices fall or ETHHEDGE and BNBHEDGE whose prices will also go up When Ethereum and BNB prices go down. Derivative tokens can usually be used by short-term traders who still want to earn profits in when the market is bearish.

Good Advice from Crypto Industry Players

Oscar Darmawan explained that traders or investors need to understand the importance of technical analysis and apply good financial management. Because the most important thing about trading is not rising and falling prices but good financial management. He said, Bitcoin technical analysis is a way of seeing future price movement predictions by looking at trends that have occurred, through candle schemes or charts. A simple way is support patterns, where the price of crypto from the bottom that is observed will experience an increase. Or the opposite pattern, namely resistance, where the price will drop from the top. “Investors need to know which candlestick indicates a price will go up or a price will go down. What is the difference between green and red candlesticks. How to identify trends using trendlines. How are crypto price patterns and so on,” said Oscar. Beginner investors or traders can learn technical analysis tips for Bitcoin and other cryptocurrencies on the internet. Including learning from the Indodax.academy website and Indodax's official social media which provides many tips and explanations about technical analysis. Bitcoin Technical Analysis Methods In the world of trading Bitcoin financial assets, investors and traders generally carry out analysis to get maximum profit. to get the best price when you want to buy and sell is Bitcoin technical analysis.

What is Bitcoin Technical Analysis

Bitcoin technical analysis is a method of analysis in the financial world to predict the price movement of a crypto asset. The prediction is done by looking at the price movement and transaction volume of the bitcoin asset in the past. This method involves mathematical and statistical processes that are presented in graphs to make it easier for traders or investors find the best prices when buying and selling assets. Generally, Bitcoin technical analysis is done by looking at price action or price movements using three steps for technical analysis. Three Ways of Bitcoin Technical Analysis technical asset bitcoin.1. Seeing Market Movements The first step is to look at the direction of price movements of a crypto asset when you want to buy or sell. When doing technical analysis, please note that there are three price movements, namely sideways or consolidation, up, and down. When prices move sideways or sideways there is generally uncertainty market. Uncertainty means that prices cannot be predicted to go up or down. This condition should be avoided if you want to make transactions, because it will most likely lead to incorrect calculations or missteps. The next movement is a correction or price depreciation movement, namely when the price of an asset moves to downward direction. When the price moves in a downward direction, analysts generally will wait to buy until they get additional confirmation. The last is the movement of asset price appreciation, which is when the price moves up clearly. Generally, this condition is used by investors to buy, but reliable analysts use it to start preparing to sell. This is because a reliable analyst will sell when prices start high and buy when prices fall to make profits. otherwise or called FOMO.2. Determining the Target The second step is to determine the target to buy or sell and maintain risk management. To determine the target, the analysis generally looks at what price is most frequently visited when the price moves up or down. The target analysis is called Support and Resistance analysis where Support means the lower limit of the price and Resistance is the upper limit of the price. These limits are found by looking at the area visited and then marked it. In general, the lower limit or support is used to be a potential place to buy or cut losses, and the upper limit or resistance is used to be a place to take profits. When looking for the lower limit and upper limit of a price movement, the Fibonacci indicator can also be helpful tools.3. Looking for Confirmation The third step is to look for confirmation to buy or sell. There are two ways to find confirmation when you want to buy or sell bitcoin assets. The first is by looking at the price movement or trend, when a reversal or reversal occurs, the confirmation can start to appear there. The biggest profits are generally obtained when a trader or investor buys or opens a position when the reversal occurs. Because the reversal is the beginning of a new direction of movement that generally can survive and provide profits in investment. The second is to look at chart patterns and candlestick patterns to complete the confirmation of the reversal. There are different types of chart patterns and candlestick patterns that indicate a potential price appreciation and there are types that indicate a potential for correction. Please note that these patterns do not need to be remembered, but still need to be studied because they will be very helpful when doing analysis. All these patterns can be searched on the internet because there are many sites that provide guidance even n cheat on the confirmation patterns. After finding the confirmation, the trader or investor can buy or open the position. Keep in mind that bitcoin technical analysis still does not guarantee that 100 percent predictions will always be correct. So technical analysis needs to be juxtaposed with risk management in order to last a long time in the crypto market or other financial markets. Those are the three steps to doing technical bitcoin analysis, it is highly recommended to explore this knowledge first before starting to apply it.