Fake Fiat Fibonacci

It’s a quiet Sunday afternoon, as we all anticipate Monday, the final trading day of this quarter. I thought I’d just share a few words about this interesting creature (Bitcoinnot Altucher):

I have been quite fascinated by how compliant Bitcoin behavior is with its retracement levels. The Fibonacci spans from December 17 of 2017 (the price peak) to December 15 of 2018 (the low price, at least so far).

As you can see, after it bottomed, Bitcoin started shrieking higher. It blew right past one retracement level (circle), then another, and then finally hit a brick wall at around $14,000 (magenta tint). It doubled topped and hasn’t looked back since.

For a while, it found strong support at the same level where it blown through earlier (e.g. the red circle). This was around $9,500, and quite near the psychologically satisfying $10,000 level. It kept banging against support (green tint in the middle of the chart).

Only quite recently did this level fail, and before it did, I mentioned that a failure would set it on the path to about $7,000, the next level down. So far, we’re just about there!

Disclosure: None. 

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