15/05/2019/22:00CET
What does the fibonacci retracement indicator tell us about this rally in Bitcoin? Lets take a quick peek at the current chart and see.
BTCUSD Daily on Bitstamp
- Trading at almost USD8200 at press time
- #Bitcoin is showing strong resilience to any sell spikes. On the hourly they seem to get bid quite solidly.
- I have taken a look a the fib retracement tool to see what we see. This is the coloured shading you see in the image.
- I have set the top at 8500, just a smidgen above our local highs and also a resistance level during last spike in price that reached this level back in August 2018.
- I have circled the 61.8% or golden ration retracement level, and we have seen a pause in the price action on the way up at this level.
- Firstly such parabolic runs usually have equally powerful retracements.
- Retracing down to the 61.8 fib level carries reasonable odds. There are many precedents to this kind of retracement, especially after rapid runs in price.
- The 61.8% fib level conincides with some pretty significant historical price levels
- The 61.8% fib level sits at usd 5800. Remember that number!
As always guys, leave comments, have fun and trade safe.