Crypto Charts – How to Read Cryptocurrency Charts

April 18, 2025
6 min read

When it comes to crypto trading, knowing how to read the charts isn’t just useful — it’s essential. Markets move fast, and while news and hype can spark short-term swings, real traders rely on something more solid: price action.

Whether you’re casually buying altcoins or actively trading Bitcoin, charts help you spot trends, catch momentum shifts, and plan your next move — without guessing.

At Bitunix, we believe every trader should feel confident looking at a chart — even if they’ve never used one before. That’s why we put together this simple, no-fluff guide to help you make sense of candles, patterns and indicators

What Are Crypto Charts?

At their core, crypto charts are visual representations of asset price movements over time. They show how the price of a cryptocurrency — such as BTC, ETH, or DOGE — moves over a specific period, from minutes to months.

Key Components of a Chart

X-Axis: Time (e.g., 1-minute, 1-hour, 1-day candles)
Y-Axis: Price of the asset
Chart Type: Line, bar, or candlestick
Indicators: Overlays and technical tools for analysis

These elements allow traders to see not just where the price is, but where it’s been — and potentially where it’s heading next.

Real-Time Application

Charts update in real-time on exchanges like Bitunix, reflecting live market activity. For traders, this real-time data becomes a radar for identifying:

Trends
Reversals
Breakouts
Entry/exit opportunities

How to Read Crypto Charts

Understanding how to read a crypto chart is like learning a new language — one spoken through price candles, volume bars, and trend lines.

Candlestick Charts

Most crypto traders use candlestick charts due to their rich detail and clarity.

Each candle shows:

Open price (when the time interval began)
Close price (when it ended)
High and Low prices
Color: Green = price rose, Red = price fell

A long green candle = strong buying pressure A long red candle = strong selling pressure
Table of Contents
Toggle

Trends: Uptrend, Downtrend, Sideways

Uptrend: Higher highs + higher lows
Downtrend: Lower highs + lower lows
Sideways: Consolidation or range-bound market

Support and Resistance

Support: A price level where buying interest tends to appear
Resistance: A level where selling pressure halts further gains

Traders use these levels to plan stop-losses and take-profits.

Volume

Volume tells you how many people are participating in a move. A breakout without volume = fakeout risk.

How to Read Crypto Charts for Day Trading

Day traders need speed, precision, and a system. Reading charts becomes the gateway to making quick yet data-informed decisions within tight timeframes.

Choose the Right Timeframe

1-min and 5-min: High-speed scalping
15-min to 1-hour: Short-term intraday moves
4-hour & daily: Trend confirmation

Combine Indicators

EMA (9, 20, 50): Trend tracking and crossovers
RSI: Measures overbought/oversold zones
MACD: Signals bullish or bearish momentum shifts

Use Chart Patterns

Bullish Flags: Quick rest before continuation up
Head & Shoulders: Reversal pattern
Double Bottom: Bullish reversal signal

Important Note:

Use multiple confirmations (e.g., RSI + pattern + volume) before entering trades. One signal alone can be misleading.

How Do Crypto Charts Work

Crypto charts are built on real-time order book data, meaning every price point reflects actual buyer and seller behavior.

Behind the Scenes

Every buy/sell order gets recorded on the exchange.
Price candles are formed based on these executed trades.
Volume bars count how many trades happened at each price/time point.

Chart Types (Quick Recap)

Line Chart: Simple price trend
Bar Chart (OHLC): Includes open, high, low, close
Candlestick: Visual + detailed (industry standard)

Reading Crypto Charts (Patterns + Indicators)

Traders use charts to detect patterns and apply indicators — combining both is how pros form trade setups.

Candlestick Patterns

Doji: Market indecision
Hammer: Bullish reversal
Shooting Star: Bearish reversal
Engulfing: Strong reversal when a full candle swallows the previous one

Chart Patterns

Ascending Triangle: Bullish
Descending Triangle: Bearish
Wedge Patterns: Reversal or breakout
Cup and Handle: Long-term bullish setup

Indicators to Master

MACD Crossover = potential shift in momentum
RSI Divergence = early reversal warning
Bollinger Bands = volatility range (squeeze = breakout risk)

How to Analyze Crypto Charts (Strategy Application)

Now that you know how to read charts — how do you use them to actually make money trading?

Multiple Timeframe Analysis

Check the big picture (1D or 4H), then drill down (1H or 15m) to find entries that align with the overall trend.

Entry Strategy Example

Let’s say BTC is in an uptrend:

Check 4H chart → higher highs, MACD positive
Zoom into 15m → RSI breaks out from oversold, price above 20 EMA
Volume surges → Entry

Exit and Stop Loss

Place stop-loss below recent swing low
Set take-profit at next resistance level or using Fib extensions

Common Mistakes to Avoid When Reading Charts

Even experienced traders fall into traps. Watch out for:

Overtrading: Don’t chase every candle
Ignoring volume: Confirmation matters
Too many indicators: Keep it clean — 2–3 max
No stop-loss: Always define your risk

And most importantly — don’t let emotions override your chart signals.

Conclusion

Charts are the language of the market. Once you understand how to read them, you stop gambling — and start trading based on actual data. Whether you’re a long-term investor or a short-term trader, chart reading helps you make smarter, faster, and more confident decisions.

At Bitunix, we provide:

Real-time interactive charts
Advanced technical indicators
Fast execution engine
User-friendly mobile app for charting on the go

Ready to level up your trading?

Sign up on Bitunix and start analyzing crypto markets like a pro — directly from your browser or phone.

FAQs

What’s the best chart type for beginners?

Candlestick charts are the most recommended for beginners because they provide detailed information (open, close, high, low) in an easy-to-interpret format.

How do I know if a trend is reversing?

Look for key reversal patterns like head and shoulders, double tops/bottoms, or candlestick signals like hammers and engulfing patterns. Use volume and indicators like RSI for confirmation.

Are technical indicators reliable?

No indicator is perfect, but when used with price action and volume, indicators like MACD, RSI, and moving averages can help improve accuracy.

How many indicators should I use on a chart?

Ideally 2–3 indicators. Too many indicators can create confusion and give conflicting signals. Simplicity often leads to better decision-making.

Can I trade just using patterns?

While patterns are useful, it’s best to combine them with volume analysis and indicators to validate potential moves. Relying solely on patterns can be risky.

About Bitunix

Bitunix is one of the world’s fastest growing professional derivatives exchanges, trusted by over 3 million users across more than one hundred countries. Ranked among the top exchanges on major data aggregators, Bitunix processes billions in daily volume and offers a comprehensive suite of products including perpetual futures with high leverage, spot markets, and copy trading. Users can trade bitcoin and other major cryptocurrencies on the platform, taking advantage of advanced trading features. Known for its Ultra K line trading experience and responsive support, Bitunix provides a secure, transparent, and rewarding environment for both professional and everyday traders. Bitunix Academy adds structured lessons so you can build skills while you trade.

Disclaimer: Trading digital assets involves risk and may result in the loss of capital. Always do your own research. Terms, conditions, and regional restrictions may apply.