Figure 2: BTCUSD, 1 Day Candles, Fibonacci Retracement Values | Bitcoin Traffic

Figure 2: BTCUSD, 1 Day Candles, Fibonacci Retracement Values
If we draw out the Fibonacci retracement set for this entire parabolic run-up, we see a potentially strong level of support around the 78% retracement (the $4,500 range). Historic parabolic run-ups have, at maximum, retraced to the 78% range before ultimately bottoming. To me, this area is a strong zone of observation and not necessarily a zone of action as the price target of the aforementioned symmetrical triangle is well below that.It’s very important to keep in mind this is all hypothetical and contingent upon the market response to the various support levels. At the time of this article, we are currently testing the strength of the first, initial, crucial support level.Summary:Bitcoin broke down out of a large, multi-month symmetrical triangle.
The measured move of this breakout lies roughly between the $1500 - $3000 range.
There are various levels of support outlined in this article that all need to considered and analyzed on a case-by-case basis, as they potentially could result in a cryptomarket-wide, devastating downward continuation.
Trading and investing in digital assets like bitcoin and ether is highly speculative and comes with many risks. This analysis is for informational purposes and should not be considered investment advice. Statements and financial information on Bitcoin Magazine and BTC Media related sites do not necessarily reflect the opinion of BTC Media and should not be construed as an endorsement or recommendation to buy, sell or hold. Past performance is not necessarily indicative of future results.





This article originally appeared on Bitcoin Magazine (https://bitcoinmagazine.com/).