In this episode of NewsBTC’s daily technical analysis videos, we take a look at how Bitcoin may have bottomed exactly at the 1.618 Fibonacci extension, utilizing Elliott Wave Theory.
Have a look at the video listed below:
VIDEO: Bitcoin Rate Analysis (BTCUSD): September 29, 2022
Did Bitcoin Bottom At The Golden Ratio?
In Elliott Wave Theory, corrections can be found in ABC patterns. Taking the Fibonacci retracement tool to draw from the bottom to the top of the A wave will offer a Fibonacci extension target for where a C wave correction may end. The wick to $17 K touched exactly at the 1.618 Fibonacci with identify precision.
1.618 is the golden ratio, likewise referred to as the magnificent percentage.
Bitcoin sag stops at exactly the golden ratio|Source: BTCUSD on TradingView.com
Previous Bearishness Bottoms Pinpointed With Golden Precision
Surprised by this discovery, we utilized the exact same method to take a look at the 2018 bearish market. Lo and see, the target ended at the golden ratio yet once again. To show this, we have actually attracted the B wave coming down triangle, and taken the Fibonacci extension from the bottom of the A wave to the leading where it started. As you can see, this forecasted the bearish market bottom completely.
Zooming out even more, could this truly have taken place in the 2015 bearish market likewise? Including yet another ABC correction, the exact same pattern fits, albeit not rather as exactly at the remainder of the analysis. Still, its precise adequate where the golden ratio might plainly be a consider where Bitcoin eventually bottoms.
Could Fibonacci Job The Next Major Peak In Crypto?
We now understand that predicting extensions from the A wave offers us the C wave bottom … ideally. However how does this work when predicting a target to the benefit? Drawing from the 2017 peak to the bearish market bottom, forecasted the top of the 2021 booming market.
If the exact same holds true for the next booming market, similar to each bearish market has actually duplicated, the golden ratio might take Bitcoin to a cost of more than $161,000 per coin.
Tony Spilotro Read More.
