How you can Calculate Bitcoin's Next Price Move
The "Fibonacci Extensions" uses past price behavior to establish price targets and potential reversal areas. Based on the Fibonacci series, a sequence of numbers in which each number is the sum of the two preceding ones. This “golden ratio” is witnessed throughout the natural world and can be found in plant growth, astronomical patterns and even financial markets.
The Fibonacci Extension is drawn over one wave of prices to provide estimates on the magnitude of the next price wave. The important Fibonacci levels to watch are: 61.8 percent, 100 percent, 138.2 percent, 161.8 percent, 200 percent, 238.2 percent, and 261.8 percent
There are three price points to consider in an uptrend: the former swing low, the most recent swing high and the most recent swing low. The Fibonacci Extension then plots future levels based on these three price points. To draw this Fibonacci extension, we began with the July swing lows at $1,850, then added the mid-August swing highs of $4,400. Finally, we connected the most recent swing low of $3,600. From there, I extended the Fibonacci lines horizontally to see where the next breakout might carry Bitcoin.
If the past can be any guidance to future moves, the Fibonacci extensions show overhead resistance at $4,937, $5,253, $5,703, and $6,275.
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It topped out at around $5000 and is now on the way down. Where is the level of support on this current down move?
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