In this episode of NewsBTC’s daily technical analysis videos, we look at how Bitcoin may need bottomed exactly on the 1.618 Fibonacci extension, utilizing Elliott Wave Theory.
Take a have a look at the video under:
VIDEO: Bitcoin Price Analysis (BTCUSD): September 29, 2022
Did Bitcoin Bottom At The Golden Ratio?
In Elliott Wave Theory, corrections are available ABC patterns. Taking the Fibonacci retracement software 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 right down to $17K touched exactly on the 1.618 Fibonacci with pinpoint accuracy.
1.618 is the golden ratio, also called the divine proportion.
Bitcoin downtrend stops at exactly the golden ratio | Source: BTCUSD on TradingView.com
Past 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 reveal 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 may see, this projected the bear market backside completely.
Zooming out additional, may this actually have occurred within the 2015 bear market additionally? Adding one more ABC correction, the identical sample suits, albeit not fairly as exactly at the remainder of the evaluation. Still, its correct sufficient the place the golden ratio may clearly be a consider the place Bitcoin in the end bottoms.
Could Fibonacci Project The Next Major Peak In Crypto?
We now know that projecting extensions from the A wave provides us the C wave backside… hopefully. But 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 similar to every bear market has repeated, the golden ratio may take Bitcoin to a value of greater than $161,000 per coin.
