How to trade crypto with technical indicators: Bitcoin Cash (BCH), Litecoin (LTC), Ethereum (ETH), Bitcoin (BTC)

Note: The information in this article is NOT financial advice.

 

If you want to know how to trade crypto with technical indicators, keep reading. In what follows, you will find conditions under which Bitcoin Cash, Litecoin, Ethereum, and Bitcoin’s prices to the US Dollar are likely to rise or drop. In each crypto price chart, the prices of the cryptocurrency are plotted over time. Each price point is the average of prices over a day, and the window represents a year. Indicators, such as Bollinger Bands, Volume, Moving Average Convergence Divergence (MACD), and Relative Strength Index (RSI), will be used to infer the likelihood of the price to rise or drop. (Crypto charts from TradingView are used.)

Bitcoin Cash (BCH)

How to use Bollinger Bands

bollinger bands - bitcoin cash
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When the Bollinger Bands are placed against the crypto price values, a pattern can be observed. This pattern can be used to infer when the crypto price is likely to rise and drop. When the price touches or crosses the lower band, it eventually hits or crosses the upper band after some time (see the above crypto chart), and vice versa. Sometimes, the price only needs to gets close enough to either the lower or upper band to observe this pattern (see the crypto chart). When the midline or mid-band of the Bollinger Bands has a positive (upward) trend, the price tends to stay above the midline, and when the midline or mid-band has a negative (downward) trend, the price tends to stay below the midline.

How to use volume

volume - bitcoin cash
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When the price crosses, touches, or nears either the lower or the upper band, there is an uptick in the volume chart (see the crypto chart). The uptick may occur slightly after the price crosses, touches, or nears the lower or upper band; it may also occur when the price suddenly drops or rises. By an uptick, we mean a rise in the volume, where the volume for the day before and the volume for the day after the uptick are lower than the volume that causes the uptick.

How to use MACD indicator

macd - bitcoin cash
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When the price has a positive (upward) trend, the blue line of the MACD is above the red line, the farther apart these lines are (or the more they diverge), the more positive the price trend is. When the price trend turns negative (downward), the blue and red lines meet (or converge) and cross each other, and the red line is above the blue line; the farther apart they are, the more negative the price trend is.

How to use RSI indicator

rsi - bitcoin cash
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Roughly, when the price rises, so does the RSI, and it goes down when the price drops (see the crypto chart). When the value of the RSI nears 30, the price tends to cross, touch, or near the lower band, and when the value of the RSI nears 70, the price tends to cross, touch, or near the upper band. When the price crosses the upper Bollinger band and stays above it for some time and the upper and lower Bollinger bands are wider apart, the RSI stays above the 70 line for some time. The trend of the RSI graph tends to coincide with the trend of the midline of the Bollinger Bands.

When to buy Bitcoin Cash (BCH) for a profit?

buy order - bitcoin cash
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On May 16th, 2021, Bitcoin Cash’s price to the US Dollar dropped below the mid-band after having been close to the upper Bollinger Band on May 11th (see the crypto chart). On May 16th, the MACD lines were diverging with the red line above the blue line, suggesting that the cryptocurrency price may continue dropping. The RSI value is about 50, suggesting the momentum is neither high nor low, and the volume is low relative to volumes of previous days. Although all these factors suggest that the price of Bitcoin Cash may continue dropping after May 16th, the trend of the mid-band is still positive, suggesting that the price of the cryptocurrency may not go down as far as crossing the lower band but may jump back up after a couple of days. If the price indeed starts to rise, the MACD lines will converge and cross each other, and the blue line will be above the red line; also, the RSI will rise.

Summary

On May 16th, 2021, the price of the Bitcoin Cash dropped below the mid-band after having close to the upper band. The Volume, the MACD lines, and the RSI value on that day suggest that the price may continue dropping but may jump back up soon because of the positive trend of the mid-band.

Litecoin (LTC)

How to use Bollinger Bands

bollinger bands - litecoin
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When the Bollinger Bands are placed against the prices of the cryptocurrency, a pattern can be observed. This pattern can be used to infer when the price of the cryptocurrency is likely to rise and drop. When the price touches or crosses the lower band, it eventually hits or crosses the upper band after some time (see the crypto chart), and vice versa. Sometimes, the price only needs to gets close enough to either the lower or upper band to observe this pattern. When the midline or mid-band of the Bollinger Bands has a positive (upward) trend, the price tends to stay above the midline, and when the midline or mid-band has a negative (downward) trend, the price tends to stay below the midline.

How to use volume

volume - litecoin
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When the price crosses, touches, or nears either the lower or the upper band, there is an uptick in the volume chart. The uptick may occur slightly after the price crosses, touches, or nears the lower or upper band; it may also occur when the price suddenly drops or rises. By an uptick, we mean a rise in the volume, where the volume for the day before and the volume for the day after the uptick are lower than the volume that causes the uptick.

How to use MACD indicator

macd - litecoin
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When the price has a positive (upward) trend, the blue line of the MACD is above the red line, the farther apart these lines are (or the more they diverge), the more positive the price trend is. When the price trend turns negative (downward), the blue and red lines meet (or converge) and cross each other, and the red line is above the blue line; the farther apart they are, the more negative the price trend is.

How to use RSI indicator

rsi - litecoin
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Roughly, when the price rises, so does the RSI, and it goes down when the price drops. When the value of the RSI nears 30, the price tends to cross, touch, or near the lower band, and when the value of the RSI nears 70, the price tends to cross, touch, or near the upper band. When the price crosses the upper Bollinger band and stays above it for some time and the upper and lower Bollinger bands are wider apart, the RSI stays above the 70 line for some time. The trend of the RSI graph tends to coincide with the trend of the midline of the Bollinger Bands.

When to buy Litecoin (LTC) for a profit?

buy order - litecoin
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On May 7th, 2021, the price of Litecoin touched back the upper Bollinger band after it had crossed the upper band on May 4th and stayed above the band. The MACD lines were still diverging, with the blue line above the red line, although the blue line is slightly bent forward, suggesting that there may be a change in the price trend after May 7th. The RSI had been above the 70 line for some time and started to go down, heading back to that 70 line. All these factors suggest that the price of the cryptocurrency may drop after May 7th. Since the trend of the mid-band is positive, the price of the cryptocurrency may stay above or near the mid-band, and it may jump back up when the MACD lines start to converge, with the red line above the blue line, and when the RSI starts to rise after having been near the 30 line.

Summary

On May 7th, 2021, the price of Litecoin may drop because it had been above the upper band for some time, the blue line of the MACD is slightly bent, and the RSI had been dropping. If the price drops, it may stay near the mid-band and rise again when the MACD lines start converging with the red line above the blue line and when the RSI start rising.

Ethereum (ETH)

How to use Bollinger Bands

bollinger bands - ethereum
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When the Bollinger Bands are placed against the prices of the cryptocurrency, a pattern can be observed. This pattern can be used to infer when the price of the cryptocurrency is likely to rise and drop. When the price touches or crosses the lower band, it eventually hits or crosses the upper band after some time (see the crypto chart), and vice versa. Sometimes, the price only needs to gets close enough to either the lower or upper band to observe this pattern. When the midline or mid-band of the Bollinger Bands has a positive (upward) trend, the price tends to stay above the midline, and when the midline or mid-band has a negative (downward) trend, the price tends to stay below the midline.

How to use volume

volume - ethereum
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When the price crosses, touches, or nears either the lower or the upper band, there is an uptick in the volume chart. The uptick may occur slightly after the price crosses, touches, or nears the lower or upper band; it may also occur when the price suddenly drops or rises. By an uptick, we mean a rise in the volume, where the volume for the day before and the volume for the day after the uptick are lower than the volume that causes the uptick.

How to use MACD indicator

macd - ethereum
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When the price has a positive (upward) trend, the blue line of the MACD is above the red line, the farther apart these lines are (or the more they diverge), the more positive the price trend is. When the price trend turns negative (downward), the blue and red lines meet (or converge) and cross each other, and the red line is above the blue line; the farther apart they are, the more negative the price trend is.

How to use RSI indicator

rsi - ethereum
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Roughly, when the price rises, so does the RSI, and it goes down when the price drops. When the value of the RSI nears 30, the price tends to cross, touch, or near the lower band, and when the value of the RSI nears 70, the price tends to cross, touch, or near the upper band. When the price crosses the upper Bollinger band and stays above it for some time and the upper and lower Bollinger bands are wider apart, the RSI stays above the 70 line for some time . The trend of the RSI graph tends to coincide with the trend of the midline of the Bollinger Bands.

When to buy Ethereum (ETH) for a profit?

buy order - ethereum
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On April 29th, 2021, the price of Ethereum to the US dollar touched back the upper Bollinger band after having been above the upper band for a couple of day, and the RSI touched the 70 line (see image), which suggests the price of the cryptocurrency may drop after the 29th. However, the lines of the MACD still diverged, with the blue line above the red line (see image), although the blue line was slightly bent forward. If the price drops after the 29th, it may stay above or close to the Bollinger mid-band and bounce back up, as it did on the 19th and 24th, which might be due to the positive trend of the mid-band.

Summary

After April 29th, 2021, the price of the cryptocurrency may drop because it had been above the Bollinger upper band and touched back the upper band and the RSI touched the 70 line. If the price of Ethereum drops, it may stay above or close to the mid-band and bounce back up because of the positive trend of the mid-band.

Bitcoin (BTC)

How to use Bollinger Bands

bollinger bands - bitcoin
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When the Bollinger Bands are placed against the prices of the cryptocurrency, a pattern can be observed. This pattern can be used to infer when the price of the cryptocurrency is likely to rise and drop. When the price touches or crosses the lower band, it eventually hits or crosses the upper band after some time (see the crypto chart), and vice versa. Sometimes, the price only needs to gets close enough to either the lower or upper band to observe this pattern. When the midline or mid-band of the Bollinger Bands has a positive (upward) trend, the price tends to stay above the midline, and when the midline or mid-band has a negative (downward) trend, the price tends to stay below the midline.

How to use volume

volume - bitcoin
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When the price crosses, touches, or nears either the lower or the upper band, there is an uptick in the volume chart. The uptick may occur slightly after the price crosses, touches, or nears the lower or upper band. By an uptick, we mean a rise in the volume, where the volume for the day before and the volume for the day after the uptick are lower than the volume that causes the uptick.

How to use MACD indicator

macd - bitcoin
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When the price has a positive (upward) trend, the blue line of the MACD is above the red line, the farther apart these lines are (or the more they diverge), the more positive the price trend is. When the price trend turns negative (downward), the blue and red lines meet (or converge) and cross each other, and the red line is above the blue line; the farther apart they are, the more negative the price trend is.

How to use RSI indicator

rsi - bitcoin
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Roughly, when the price rises, so does the RSI, and it goes down when the price drops. When the value of the RSI nears 30, the price tends to cross, touch, or near the lower band, and when the value of the RSI nears 70, the price tends to cross, touch, or near the upper band. When the price crosses the upper Bollinger band and stays above it for some time and the upper and lower Bollinger bands are wider apart, the RSI stays above the 70 line for some time. The trend of the RSI graph tends to coincide with the trend of the midline of the Bollinger Bands.

When to buy Bitcoin (BTC) for a profit?

bitcoin - buy order
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On April 21st, 2021, Bitcoin’s price neared the lower Bollinger band but did not cross it (see the crypto chart). The MACD lines were diverging, with the red line above the blue line, which suggests the price of the cryptocurrency had been dropping. The RSI value is slightly above 40, which suggests a somewhat high momentum to buy. In fact, the price of the cryptocurrency had dropped from about $63,186 on April 15th to $54,743 on April 21st (9:20 PM UTC). Since the MACD lines continued to diverge, the price might still continue to drop. When the MACD lines start converging, the RSI starts rising, and the trend of the mid-band becomes less negative, the price will be likely to rise.

Summary

Bitcoin’s price to the US dollar had been dropping a couple days before April 21st, 2021. Based on the indicators, the price may continue dropping past April 21st . When the MACD lines start converging, the RSI starts rising, and the trend of the mid-band becomes less negative, the price may rise again. 



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