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Interpretation of Bitcoin Chart


Bitcoin has received a lot of attention as the new currency that operates digitally. It is always considered most informative when the data received is organized in a chart. This topological analysis makes it easier to analyse this route. One of the problems experienced is just how the bitcoins charts can be interpreted. There are millions of theses coins in circulation. Whenever the coins reach 21 million the production is usually halted. There are charts that will show us the amount of the revenue in total, of the bitcoin miners in USD. For you to be a miner all you require is a computer and an online computer link.

There is also the bitcoin chart that shows us the volatility and the price of the bitcoins. For one to be able to calculate the volatility of the bitcoins they will have to analyse the standard deviation of the returns incurred daily for the past fourteen days. If the behavior in the price remains the same over the last two weeks the volatility which will be chargedwill be interpreted as the change range expected in price. The result can be both positive and negative as the year comes to a conclusion.

In the everyday evaluation of the bitcoins they will be plotted against their return on that particular day. The number of days that will be above the zero percentage line is more than those which are below the line due to the upward trend that the price of the bitcoins has been experiencing and it is on an upward trend ever since the month of January 2013.We should also be able to interpret a simple average in the price referred to as a simple moving average (SMA).When it is short term it will move over and exceed the average long term momentum in price in an accelerating market.


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