Degen - 0.618 Fib Bounce Could be a Bullish Move to the upsideThe concept of a 0.618 Fibonacci bounce, also known as the "Golden Ratio" or the "Golden Mean," is derived from Fibonacci retracement levels. These levels are used by traders to identify potential support and resistance areas. The 0.618 level is particularly significant because it is based on the Fibonacci sequence, where each number is the sum of the two preceding ones. This sequence is found in various natural phenomena, and some traders believe it also applies to financial markets.
When a financial instrument, such as a cryptocurrency or stock, experiences a significant upward or downward movement, traders often use Fibonacci retracements to identify potential levels where the price might find support or resistance. The 0.618 level is considered a strong support level, meaning if the price retraces to this level, it may bounce back and continue its upward trend.
