Bitcoin Price Prediction as BTC Completes 61 8% Fibonacci Retracement Time to Buy the Dip?

The trend line has a confluence with a strong Fibonacci line would have propelled more confidence into the trader to execute the trade. The trend continuation that followed would not have come as a surprise. Popular YouTube channels, financial media, everyone is talking about the great big crash of 2023 to come. I see a backtest of past resistance and price action landing on the golden ratio.

Each major bottom also took place within a logarithmic buy zone and each cyclical top in its sell zone. For example, Venus orbits the sun in 224.6 days, while Earth at 365.2 days. This creates a ratio of 8/13 — both Fibonacci numbers — which is roughly 0.618.

Brief Overview of The Good Crypto App Benefits For Traders

Cryptocurrencies have been trading sideways for some weeks, prompting some traders to consider alternatives with greater short-term promise. The following are some of the market’s leading presales, allowing investors to get in on the first floor. The current price of Bitcoin is $17,469, and the 24-hour trading volume is $25 billion. Despite having broken through a critical resistance level of around $18,150, Bitcoin is trading adversely. Like any other indicator, Fibonacci is best used with other indicators. Apart from RSI, other tools that can be used to compliment it are moving averages, volume and other relative strength indicators.

RobotEra , another Ethereum-based platform, is a Sandbox-style Metaverse that will allow players to play as robots and contribute to the creation of its virtual world. Each number in the sequence being the sum of the last two numbers before it. They follow the pattern 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144 etc. According to the theory, the market has five movements that make up a symphony, each one with its unique rhythm and melody. Three of the steps go with the trend, and the other two go against it.

Bitcoin Price Prediction as BTC Completes 61.8% Fibonacci Retracement – Time to Buy the Dip?

The https://www.beaxy.com/ ratios are calculated simply by dividing the numbers in the Fibonacci sequence. For example, the ratio of 61.8% is calculated by dividing 21 by 34 or dividing 55 by 89. In a new prediction, the next target for BTCUSD might also reach a level that very few at this point would consider or expect. However, ages-old mathematics and Elliott Wave Theory could suggest the next cycle may possibly peak much sooner than many would believe — and at price of $161,800 per coin.

For more insights and education from Tony, check him out on Twitter or in his free TonyTradesBTC Telegram channel. Among the most popular Fibonacci levels are Fibonacci retracement levels, which help identify potential support and resistance zones. These levels are often used to identify entry and exit points, or to decide where to put a trigger for stop orders. These are automatically executed when a certain price is reached, preventing significant losses in the process. There are lots of tools used in technical analysis to help predict the future of market trends. Among them are Fibonacci retracements and extensions, which are tools based on a string of numbers called the Fibonacci sequence.

You can also use the Fibonacci retracement tool with other technical indicators, including candlestick patterns, oscillators, volume momentum, moving averages, etc. Some people use it with price action to trade trend reversals and counter-trend trading strategies. These traders do not wait for the price to get to the Fibonacci retracement support or resistance but rather use the levels to determine when to secure their profit. Some other people also regard the Fibonacci retracement tool as confusing and a waste of time and prefer not to use it. In financial markets, Fibonacci ratios can be used to denote the asset’s price momentum. They are used by technical traders to visualize resistance levels, draw support lines, and determine take-profit targets.

What are the Fibonacci ratios?

These factors suggest that the demand for cryptocurrencies continues to grow, even in the face of broader economic challenges and regulatory headwinds. Furthermore, the designers receive 10% of any proceeds from sales made through third-party marketplaces like OpenSea. Traders on OpenSea have forked over $406,000 so far purchasing and trading NFTs. This can also be used in a downward trend, but the pattern is reversed with the retracement being a bounce to a higher low. The ideal situation however is for the bounce to occur at a Fibonacci number, say 61.8%.

Back in 2021, reached this golden ratio target as predicted by the Fibonacci extensions when analyzed on the BTC CME chart. It’s a journey from the beginning of the chart till the bear market bottom of 2018. Next, to chart Fibonacci retracement levels, expand the Gann and Fibonacci retracement tool crypto. Click on the 3rd tool icon from the top and select the “Fib retracement” tool.

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The aforementioned ratios of 68.1%, 38.2%, and 23.6% form horizontal lines between these points, with two additional levels, at 50% and 76.4%. These crypto Fibonacci lines provide price levels where the price is likely to reverse within the trend. They also provide levels where the price is more likely to stall and encounter support or resistance. Many traders use the Fibonacci retracement levels in combination with the trend line and other technical indicators as a part of their trend trading strategy.

All information on this website is informative and not a recommendation to buy or sell anything. Consult an expert when making financial decisions and only invest money you can afford. And, with the use of the Fibonacci extension target, the code-breakers can even project the end of the current bullish cycle.

In technical analysis, however, it is most commonly encountered in the Fibonacci retracement and Fibonacci extension tools. Pair, there was also a breach below a connecting bullish trend line with support near $50,800. Ended the day at $50,634.0, having reached a top of $51,969.0 and a low of $50,102.0. BTC/USD extended its upward trend for the third session in a row, recouping about half of its Saturday’s loss. Cryptocurrencies have seen massive adoption from corporate and ordinary investors in recent years. Adoption is also expanding daily as more people seek access to Bitcoin and other cryptocurrencies.

• The content published on this website is not aimed to give any kind of financial, investment, trading, or any other form of advice.
• A comparable analysis conducted last year indicated that BTC was held by 23% of US households.
• He testified in a civil trial against the family of a deceased business partner, who claimed ownership of half of a cryptocurrency wealth worth tens of billions of dollars.

Tony “The Bull” is a level 3 CMT student (passed level 1 & 2), technical analyst, Bitcoin supporter, and avid speculator. Tony is deeply fascinated by core market principles such as Elliott Wave Theory as they tie into mathematics like Fibonacci ratios. Market timing though DeMark indicators, Ichimoku, Gann tools, or Hurst Cycle Theory are also of key interest. Tony provides completely original content driven by exclusive, independent research.

What is Fibonacci Retracement Level?

Your next step on how to place a Fibonacci retracement is to choose a high and low point on your chart. Our low point reference will be the low levels of September 2021 and January 2022 at $39,470. Simply click and drag from the all-time high to the lowest points to draw the Fibonacci retracement table. Now that you know how to read Fibonacci retracement in a chart, let’s continue by showing you how to trade with Fibonacci retracement.

BitDegree.org does not endorse or suggest you to buy, sell or hold any kind of cryptocurrency. Before making financial investment decisions, do consult your financial advisor. Therefore, it cannot be reliably used as the sole technical indicator. TheFibonacci sequence is a set of numbers that includes a certain pattern like, 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, etc. Every number in this sequence is the sum of its previous two numbers and every number is 1.618 times greater than the previous number.

Cryptocurrency traders commonly use Fibonacci retracements and extensions to decide where and when to buy or sell. It is not known why prices tend towards these levels, but the ratios are found throughout the natural world. Tirone levels are a series of three sequentially higher horizontal lines used to identify possible areas of support and resistance for the price of an asset.

Bitcoin price is struggling to hold above $20,000 per coin – a level that some expected the top cryptocurrency to trade again after breaking through key resistance for the first time. Fibonacci extensions are a method of technical analysis commonly used to aid in placing profit targets. Fibonacci retracements are created by taking two extreme points on a price chart and dividing the vertical distance by the key Fibonacci ratios of 23.6%, 38.2%, 50%, 61.8%, and 100%. Common Fibonacci extension levels are 61.8%, 100%, 161.8%, 200%, and 261.8%.

If it is grayed out, the pattern is emerging, but a more obvious feature is the pink dot on emerging patterns. This is because the patterns with more points ETH contain or are made up from patterns with fewer points. As you can see, the retracements of 0.236, 0.382, 0.5, 0.618, 0.786 were all respected as support, at least temporarily, as price rebounded from its September plunge. Not only that, but each number is roughly 1.618 times greater than the number before it. This creates a value known as the “golden ratio,” or “phi” and has a fascinating relationship with nearly everything in nature. China Telecom and the Shanghai Tree-Graph Blockchain Research Institute, also known as Conflux Network, have partnered to develop the BSIM, a blockchain-based SIM card.

You only need to choose low and high fibonacci bitcoin swings relevant to your analysis and the price at which you are trading. The possible entries were upon breakout of 1,0700 or after a correction. Non of them were confirmed and a decline followed, showing us that EURUSD does not have the strength to reverse the trend now. In this case it’s more likely to see breakout of the bottom at 1,053. This is one of the most powerful reversal candles that can happen at the end of a trend. The previous candle from January was a huge green candle, so this DOJI from February is an indication of bullish exhaustion.

First, let’s define what this so-called “Fibonacci” is so you have a better idea as to why it is a concept relevant to trading cryptocurrencies. Similarly, according to a previous Finbold report, BTC is currently in an “extreme long-term hodler accumulation zone by considering Bitcoin’s historical price analysis”. In addition to BTC and ETH, there are several other altcoins in the market with high potential. The CryptoNews Industry Talk team has analyzed and compiled a list of the top 15 cryptocurrencies for 2023. Currently, the ETH/USD pair is experiencing a consolidation phase within a narrow trading range of $1,635 to $1,675, after failing to surpass the $1,740 resistance level. As the cryptocurrency market continues to evolve, the introduction of new protocols and technologies will play a significant role in shaping its future.