What is a depth chart?

A depth chart is a tool which shows you what you need to know regarding supply and demand. With it, you can see a visual representation of the supply and demand of a specific digital asset, assuming you know how to read it. Here is a quick summary to help. You’ll notice two lines on a depth chart. These are the bid and ask lines.

Why should you read crypto charts?

As a basic part of technical analysis, reading charts should serve as an introduction to understanding the crypto market better through learning more techniques and crypto market factors. Reading candlesticks and charts should not be a participant’s sole basis for forecasting the market. Stay up to date on the market with Crypto.com Price.

How does a bitcoin depth chart work?

The lines on the chart are created through the use of plotting dots. Each dot on the depth chart shows how much you can trade at a given point. Bid orders are placed using dollars. For example, you might want to purchase two bitcoin at $9,500 each. This means that the total size of your bid is $19,000 for a trade that comes in at $9,500 or less.

What does a head and Shoulders pattern on a crypto chart mean?

A bullish head and shoulders pattern, coloured in green on the left side of the chart, may indicate that the crypto price is about to go on an upswing. Meanwhile, a bearish head and shoulders pattern, like the one shaded in red on the right, may precede a price downtrend.