2 min read

Bitcoin and the importance of Fibonacci retracements

ONE44 Analytics where the analysis is concise and to the point

Our goal is to not only give you actionable information, but to help you understand why we think this is happening based on pure price analysis with Fibonacci retracements and Gann squares.

You can get all the rules and guidelines to the Fibonacci retracements on our website.


In this update we will start where we left off on Aug. 2nd,

"As for what keeps the current uptrend intact, we will watch 38.2% of the rally at 37,500, as long as it remains above here the trend is positive. Just beware of what a break from the long term swing point can do. Only breaking down to 23.6% at 39,500 would be extremely positive."

As you can see the break from the area of 38.2% (42,800) back to the ATH held 38.2% of the 28,957 low on June 22nd, this was 37,500.

In this instance, it shows why we always say, you have to watch all the retracements regardless of the long term targets. Following the ONE44 Fibonacci rules and guidelines the target on a break from the 42,800 area had the possibility to send it to new lows for the move. This was the long term view, however you also have to watch the short term view as well to see if the trend is changing sooner. When it held 37,500 (38.2%) of a smaller move it was telling us the trend was getting stronger despite the long term view. The market also showed it was gaining strength when the previous two setbacks held 38.2% on 7/26/21 and then 23.6% on 7/30/21, both leading to new highs. The move up from 37,500 (38.2%) has rallied almost $7000.00 and taken it through 42,800 (38.2% to ATH).

Our long term swing point is 42,800 and you will have to watch it over the next few days to see if it can stay above it, if so, the next target becomes 51,200 this is 61.8% back to the ATH. A solid close back below 42,800 can send it to retest the lows and always we will watch all the retracements on any move. Provided they did close back below 42,800 we will also watch the short term retracements of the current rally and if all they can do is get back to 38.2% (38,600) once again the trend is still up and only getting back to 23.6% (40,900) would keep the trend extremely positive.

All of the ONE44 Fibonacci rules and guidelines can be used in every market.

In between the long term levels you can use our W.D. Gann Law of Vibration charts for support and resistance, these are posted on our website.