Bitcoin Fibonacci Saint Blessing the Path!
Once again, a feature that is present in all graphical analyses: Fibonacci.
A quick look at the graphics would tell unbelievers that it’s just a coincidence. It could even be, if it weren’t so perfect.
From the fall of $58k to the limit of support at $30k, we can trace the famous Fibonacci retracement, which means showing on the chart the correction (upward) patterns that the cryptoactive can have.
Bitcoin made an EXACT correction at 38.2% fibo and shortly thereafter presents a rejection. And at that point, it returns to 23.6%, where since falling to $30k, it has seen a congestion of support and resistance.
At the moment, 23.6% is the support trying to hold the price up. Can you do it?
Fibonacci corrections patterns and projections
The point at 38.2% is a ‘good’ number for fibo correction. It happens very often and many traders (including the author who speaks to you) use it in their trades. A stronger correction goes in the golden pattern at 61.8%.
Bitcoin needs to break resistance at 38.2% fibo ($41,346.00) to be able to fight in the upper zone. Let’s say this point is step 1 for BTC recovery. Notice on the graph that after Bitcoin drops to $30k, it comes back 2x at 38.2% fibo and CANNOT break through. Both times it was rejected.
If we lose the 23.6% fibo support now, it’s quite possible that we’ll see more decline to test the bottom again. Right now, that’s the scenario we’re seeing: 23.6% fiber support test.
Fasten your seatbelts, settle into your chairs and let’s see this fight. If the support wins, the price tends to return to 38.2% and then, being the 3rd time, it comes with a breakout bias.