On this episode of NewsBTC’s day by day technical evaluation movies, we look at how Bitcoin might need bottomed exactly on the 1.618 Fibonacci extension, utilizing Elliott Wave Concept.
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VIDEO: Bitcoin Value Evaluation (BTCUSD): September 29, 2022
Did Bitcoin Backside At The Golden Ratio?
In Elliott Wave Concept, corrections are available in ABC patterns. Taking the Fibonacci retracement instrument to attract from the underside to the highest of the A wave will present a Fibonacci extension goal for the place a C wave correction may finish. The wick all the way down to $17Ok touched exactly on the 1.618 Fibonacci with pinpoint accuracy.
1.618 is the golden ratio, often known as the divine proportion.
Bitcoin downtrend stops at exactly the golden ratio | Supply: BTCUSD on TradingView.com
Previous Bear Market Bottoms Pinpointed With Golden Accuracy
Shocked by this discovery, we used the identical technique to look at the 2018 bear market. Lo and behold, the goal terminated on the golden ratio but once more. To display this, we’ve drawn within the B wave descending triangle, and brought the Fibonacci extension from the underside of the A wave to the highest the place it started. As you possibly can see, this projected the bear market backside completely.
Zooming out additional, may this actually have occurred within the 2015 bear market additionally? Including one more ABC correction, the identical sample suits, albeit not fairly as exactly at the remainder of the evaluation. Nonetheless, its correct sufficient the place the golden ratio may clearly be a consider the place Bitcoin in the end bottoms.
Might Fibonacci Undertaking The Subsequent Main Peak In Crypto?
We now know that projecting extensions from the A wave provides us the C wave backside… hopefully. However how does this work when projecting a goal to the upside? Drawing from the 2017 peak to the bear market backside, projected the highest of the 2021 bull market.
If the identical is true for the subsequent bull market, very like every bear market has repeated, the golden ratio may take Bitcoin to a value of greater than $161,000 per coin.