Are you going to invest in bitcoins? Then you might have heard about bitcoin yearly candle chart and experts on different websites suggest you read it. So, what are these charts and how to read it? However, they are nothing but a market chart for bitcoin that informs you about the value of bitcoins at present. And if you have been in the share market then understanding it is easy. On the other hand, if you are a total newbie then you need our help.
Bitcoin candle chart- what is it?
Bitcoin yearly candles are a chart that provides you insight about the movements of bitcoin in the coin market. It helps you know the market value of bitcoin. As a result, you can easily decide when you should buy or sell them. It is better to buy when the price is low and sell when it is high.
However, there are more advanced charts that will give you more insights into the bitcoin market. And bitcoin yearly candle chart is one among them. Read more about them here.
About bitcoin yearly candle chart
The price looking chart is nothing but a line graph. Moreover, there are two axes on which it is made. The x-axis tells you time and the y-axis tells you the price of bitcoin during that time. Usually, time is mentioned in years. However, there are charts on the day, week, and monthly basis. As it gives you a snapshot view about the digital currency world letting you know what is going up-trend and what down-trend is. And depending upon what you can decide about the investment strategy.
Also, there is a specific date range that lets you know about the specific movement.
A more complex view of bitcoin yearly candle chart
However, you need to know more knowledge other than the end price on a particular date. This information includes the price movement from high to low during the day. Here is a brief about what different features of bitcoin yearly candles say about the bitcoin price.
The color of the bar can be either red or green. However, the red color shows the lower price on which the coin closed on that day. On the other hand, a green bar shows that the price on which bitcoin closed for a day was higher.
Luckily, understanding the chart is easy with this line which represents the low and high price. And a line going downward indicates a decrease in price and the upward line shows a rise in price.
Moreover, there is a shaded portion on the bar that gives you valuable information about price opening and closing.
Bitcoin investment is more than checking the bitcoin yearly candle chart
So, if you think that seeing the price variation on the chart is enough then you are wrong. You need to know about variables like how much to invest, personal risk tolerance, and on what kind of digital currency to invest.
Therefore, research carefully before making bitcoin investment and avoid relying on single information. But some of the price charts may give you inaccurate information. Moreover, reading them incorrectly also leads to the failure of the investment.