BTC/USD – The ultimate bottom? Study Fibonacci moving averages
Updated
My trade monitor is all Fibonacci. Here you see a weekly chart of Bitcoin with all the relevant moving averages, based on Fibonacci: weekly 8-MA, 13-MA, 21-MA, 34-MA, 55-MA, 89-MA, 144-MA. You see them one above the other in this chart.
Then there is a grid produced through a Fib Speed Resistance Fan. I use this to give me a better sense of projecting price movements in time.
In the chart I have marked the places with a red arrow (down), where a lower MA crosses a higher one, which is a bearish sign. It is useful to study what the market does around such crossings.
As you can see, even if the price would fall back to weekly 144-MA support, around 3000 USD, this would still keep the uptrend intact. There is no prediction involved here, not at all! Just observation of how price/time move in a field based on Fibonacci weekly moving averages.
There is every reason to use Fibonacci for trading crypto. The crypto industry is all about scaling up, and therefore exponential growth, and the Fibonacci number sequence is mathematically the most adequate to model this.
Moreover, as Wallstreet and high finance institutions have completely taken over the market, they want to keep the numbers and levels “clean” Fibonacci, so that their automated bot trading is the most profitable for them.
Bitcoin has no inherent value, so its price is all a function of supply/demand. Therefore, it has to go through all the stages of supply/demand development, in order to reach ever increasing adoption. The Fibonacci model is mathematically simply the most natural to accomplish this.
If you view through the lens of Fibonacci price/time development, then you can see that BTC is going to be huge, “a bubble that never bursts”. But in order not to be swept away by the volatility is good to know how low its price could go before resuming its uptrend.
So, if you want to study price/time from a distance, you may find this chart useful. Very best of luck with your trading/investing.
P.S. Always set your charts to log price scale.
Then there is a grid produced through a Fib Speed Resistance Fan. I use this to give me a better sense of projecting price movements in time.
In the chart I have marked the places with a red arrow (down), where a lower MA crosses a higher one, which is a bearish sign. It is useful to study what the market does around such crossings.
As you can see, even if the price would fall back to weekly 144-MA support, around 3000 USD, this would still keep the uptrend intact. There is no prediction involved here, not at all! Just observation of how price/time move in a field based on Fibonacci weekly moving averages.
There is every reason to use Fibonacci for trading crypto. The crypto industry is all about scaling up, and therefore exponential growth, and the Fibonacci number sequence is mathematically the most adequate to model this.
Moreover, as Wallstreet and high finance institutions have completely taken over the market, they want to keep the numbers and levels “clean” Fibonacci, so that their automated bot trading is the most profitable for them.
Bitcoin has no inherent value, so its price is all a function of supply/demand. Therefore, it has to go through all the stages of supply/demand development, in order to reach ever increasing adoption. The Fibonacci model is mathematically simply the most natural to accomplish this.
If you view through the lens of Fibonacci price/time development, then you can see that BTC is going to be huge, “a bubble that never bursts”. But in order not to be swept away by the volatility is good to know how low its price could go before resuming its uptrend.
So, if you want to study price/time from a distance, you may find this chart useful. Very best of luck with your trading/investing.
P.S. Always set your charts to log price scale.
Comment
I now think it's better to use Exponential Moving Averages (EMA). So I'm now using those in my entire system.Comment
I HAVE PUBLISHED AN IMPROVED CHART WITH EMA'S. PLEASE REFER TO THAT CHART AND IGNORE THIS ONE (AS I CANNOT DELETE IT), THANK YOU.
It is all Fibonacci.
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