On this episode of NewsBTC’s daily technical analysis videos, we read about how Bitcoin would possibly have bottomed exactly on the 1.618 Fibonacci extension, the use of Elliott Wave Idea.
Check out the video under:
VIDEO: Bitcoin Value Research (BTCUSD): September 29, 2022
Did Bitcoin Backside At The Golden Ratio?
In Elliott Wave Theory, corrections are available in ABC patterns. Taking the Fibonacci retracement software to attract from the ground to the highest of the A wave will supply a Fibonacci extension goal for the place a C wave correction would possibly finish. The wick right down to $17Okay touched exactly on the 1.618 Fibonacci with pinpoint accuracy.
1.618 is the golden ratio, sometimes called the divine percentage.
Bitcoin downtrend stops at exactly the golden ratio | Supply: BTCUSD on TradingView.com
Previous Undergo Marketplace Bottoms Pinpointed With Golden Accuracy
Stunned via this discovery, we used the similar solution to read about the 2018 undergo marketplace. Lo and behold, the objective terminated on the golden ratio another time. To exhibit this, we have now drawn within the B wave descending triangle, and brought the Fibonacci extension from the ground of the A wave to the highest the place it all started. As you’ll be able to see, this projected the undergo marketplace backside completely.
Zooming out additional, may this in point of fact have took place within the 2015 undergo marketplace additionally? Including but every other ABC correction, the similar trend suits, albeit now not reasonably as exactly at the remainder of the research. Nonetheless, its correct sufficient the place the golden ratio may obviously be a consider the place Bitcoin in the end bottoms.
May just Fibonacci Venture The Subsequent Primary Height In Crypto?
We now know that projecting extensions from the A wave offers us the C wave backside… confidently. However how does this paintings when projecting a goal to the upside? Drawing from the 2017 height to the undergo marketplace backside, projected the highest of the 2021 bull marketplace.
If the similar is right for the following bull marketplace, just like every undergo marketplace has repeated, the golden ratio may take Bitcoin to a cost of greater than $161,000 in keeping with coin.