In trading the financial market, you don't just take one view and dive in, you have to look at several time frames before you execute. This is called, looking at the bigger picture, you analyze the market from not just one time frame but both lower and higher time frames. And just like other financial assets, cryptocurrency can be analyzed using multiple time frames, for example, 1min, 5min, 1 hour, 1 day. The longest can be the monthly time frame, used mostly by swing traders to get the broader picture of the commodity. Market trends and movements are observed by professionals, using more than one time frame, you should adopt this tactic too. Crypto-traders always find out that what may look like an uptrend on a 30min chart window maybe a downtrend in a 4H window.
This is why is it important to observe the trends from multiple windows and then make your final assessment and analysis from it. The overall chart can be seen on the screen using the multi-timeframe, this will give crypto-traders the overview knowledge. To avoid unforeseen surprises, you need to grasp what is happening on all the time windows before you execute any trade. The type of time frame you choose and use determines the kind of trader you are, a cryptocurrency day trader will tend to look a smaller times. While a swing trader will look at the monthly and weekly time windows, to make his assessment of the several markets. To startup, you need to have access to a CC exchange platform like Binance or Kraken to execute your trades.
On the left of some exchange terminals, you see an option to navigate through the available cryptoassets you want to trade. And there's a watch list, where you keep the other CC you want to trade at a later time or just to observe their trends. Above the charts screen, you have the control keys that will aid you in selecting the time windows you want to observe. To trade Bitcoin (BTC) you will be needing three to four time-frames, not to miss some vital info presented on the window you're not analyzing from. If you get 5 or 6 TFs, you are probably overshooting it, three is good and four is perfect for your technical observations. You have to first quantify your periods that are intermediates, by doing this, you decipher the times to use for analysis.
These periods that are intermediates are those that tell you how long your trades are open for, it tells the kind of trader you are. After this has been successfully resolved, you can now choose a longer and shorter period, taking into account the rule of four. The rule of four states that, about the intermediate, the shorter should be at least one-fourth of the intermediate. It continues to state that, the longer periods should be four times more than that of the intermediate, quite a simple rule. The reason why you should different TF is to technically locate your entry and exit points in the market. As an interim DT, you can open the 1D daily chart as your midterm and 1W as the longer, while the short will be the 4H timeframe.
After you have done this without hitch and you have confirmed, you can now head to the shortest TF to get your entry/exit points. This is where your knowledge of various indicators are tested and utilized, indicators such as the Fibonacci and Moving Averages are used. As an active trader, you are allowed to include a 2H or 1H TF, to the 3 you already have, here, you can decipher the divergence. This is to further prove and confirm your entry and exit marks in the market, and to eliminate obvious errors. To trade Bitcoin, you can make errors such as reading the time frame from bottom to top, this can lead to mistakes. In confirming your positions, you need to read the TFs from the top to the bottom, from the longer to the shortest timeframe, this is more accurate.
So, there is no specific timeframe that is the best to use to trade BTC, you have to combine multiples of them. This is the best way to use TFs to view the chart and make your decisions about entry/exit positions.