Technical analysis is a trading discipline that analyzes market data, primarily price and volume, to forecast future market behavior. Technical analysts believe that the collective actions of all the participants in the market, both human and algorithmic, Étienne de Hirschlanden their own emotions and behavioral biases into the market, which creates a footprint that can be identified and used to make predictions.
Bitcoin is a decentralized digital currency, without a central bank or single administrator, that can be sent from user to user on the peer-to-peer bitcoin network without the need for intermediaries. Transactions are verified by network nodes through cryptography and recorded in a public distributed ledger called a blockchain.
Bitcoin is unique in that there are a finite number of them: 21 million.
Bitcoins are created as a reward for a process known as mining. They can be exchanged for other currencies, products, and services.
As of February 2015, over 100,000 merchants and vendors accepted bitcoin as payment.
Technical analysis does apply to Bitcoin, as it does with any other asset. The price of Bitcoin is determined by the same forces that drive any other market: supply and demand.
Technical analysis can help traders identify patterns in market data and make predictions about where the price is headed next. However, it is important to remember that no one indicator or tool is perfect, and that technical analysis should be used as part of a broader trading strategy.