Fibonacci Forecasts?
Why do all technical analysis and other people who try to predict the price trends of crypto currencies use the phrase "Fibonacci"? I really see no correlation between the Fibonacci series and crypto.
The Fibonacci series or number or whatever you want to call it is just a series of numbers that follows a simple rule every number is just the sum of the preceding two, like this:
1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144. . . . . until eternity
Now what does this have to do with trying to determine crypto or any kind of price? It is a naturally occurring sequence, perhaps it is present in nature, but what does it have to do with prices, especially crypto prices where nothing natural is going on except the classical manipulation of an asset by those who have the money and power to do so?
Is there some logical explanation for using the name Fibonacci in forecasting?
Yes, there is a logical explanation - Golden Ratio. Since we are part of nature, we behave according to some rules and one of the rules are those Fibo numbers.
To understand how those fibo numbers correspond to our nature, you have to read about Elliott Wave Theory.
But that is exactly the question, Fibonacci is a sequence found in nature, stock cycles be they in a market like Wall Street or in the crypto market are completely artificial, how can you correlate them? Yes, you (by you I don't mean you explicitly) can come with a lot of very adorned explanations but the fact is that one is natural the other one artificial and prone to the manipulation of man, no correlation between them.
You are mixing all things into one bag and based on that make your assumptions. 😉
Elliott's theory works only on human emotions when the market is liquid and trades are made by humans or human will. That is the answer to your question about Fibonacci numbers.
Bitcoin market is NOT liquid and is manipulated. So, you can NOT predict prices based on theories in this current market. Experts would argue that you actually can get the price levels that are based on the next Fibonacci number, when the previous level is broken, then the next and so on. In that sense you can predict what is the next probable price level, because even manipulators are humans and they need somebody on the market to sell or buy their coins. Bots have only coins that humans gave them to trade in specific price levels and those price levels are based on Fibonacci... 😂