Bitcoin Chart Analysis: Best Crypto Indicators for Trading

If you want to invest in Bitcoin successfully, you should always choose a good time for your purchases. In many cases, newbies don’t worry about the rate so far and lose money as a result. Of course, no one can predict the exact rate of BTC, but there are a few ways to evaluate the price. 

Thus, future trends can often be derived from this. Similar to the stock market, there are also certain Bitcoin indicators that can point to a price increase. In this article, we have summarized the most important ones. All of the following indicators can be used free of charge at Tradingview.

Moving Average (MA)

This indicator calculates the average Bitcoin price in the past. This can always be a good starting point if there have been significant price fluctuations recently. The last 14, 50, 100, and 200 days are often taken as the time span and the average value is calculated on its basis. With a so-called Exponential Moving Average (EMA), the last few days are automatically assigned more importance. An indication that the price could continue to rise in the coming days is a so-called Golden Cross.

Relative Strength Index (RSI)

This indicator shows whether an asset is currently oversold or undersold. The sum of all positive and negative price changes relates to each other. A value, which is always between 0 and 100, is then calculated using two mathematical formulas. Values ​​above 70 are considered to be oversold, which can lead to a falling price. In return, values ​​below 30 are considered to be undersold. Thus, a trend reversal towards rising prices could take place in the near future. However, the RSI should never be used as the only indicator as it’s just a means and not a guarantee of a prediction.

Fibonacci Retracement

There are certain values ​​in the laws of nature that occur more often than average and keep recurring. The mathematician Leonardo Fibonacci made this discovery in 1200’s favor and therefore formulated a so-called Fibonacci sequence. This is an infinite sequence of numbers, which always results from the sum of the two previous numbers (0, 1, 1, 2, 3, 5, 8, 13, 21, 34). The two consecutive numbers always have a certain relationship to each other, a so-called golden ratio. If we apply this property to the price trend of an asset, it becomes apparent that this too often falls back to certain values. The values ​​38.2% and 61.8%, to which the price corrects after a strong price increase, are of particular importance here. To get the most accurate values ​​possible, place the Fibonacci indicator at the lowest point in the chart and then measure the distance to the highest point.


MACD stands for Moving Average Convergence/Divergence and describes the difference between two different exponential moving average values ​​(EMA). So the formula is EMA (1) − EMA (2) = MACD. It’s also important that the EMA (1) represents the shorter time interval between the two. Positive values ​​are considered as an upward trend and negative values ​​indicate a downward trend. Values ​​around zero are considered neutral and shouldn’t be traded until a clearer signal emerges.

Bollinger Bands

The Bollinger Bands are based on the property of normal distribution. A trader assumes that the current price is very likely to correspond to the moving average (MA) of the last few days. The Bollinger Bands themselves form the standard deviation above and below the average. The closer the price movement approaches one of the bands, the higher the probability of a trend reversal towards the other band. In addition, there are signs of greater price fluctuations the closer the two bands are to one another. Like any indicator, the Bollinger Bands alone are no guarantee of an accurate forecast. For this reason, you should always combine several indicators for a detailed chart analysis.


Indicators are useful tools that can be used to interpret past and current price movements. These mathematical results can be used to make price predictions for the future. However, mathematics alone isn’t a good indicator, as people always act on a psychological basis and the price trend is therefore also controlled by the emotions of a trader.

What other important indicators to predict BTC price do you know? Feel free to share your knowledge in the comments!

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