Bitcoin News: The only thing known about Bitcoin is that it is unpredictable. But can math turn this idea upside down? Popular analyst Crypto Total Ventures used the concept of Fibonacci, also known as the golden spiral, while examining the past movement of the king coin. Thus, according to these tools, it helped us understand where BTC could go and how soon it could happen.
Golden spiral or Fibonacci; an extraordinary phenomenon that occurs in nature, in art, in music, and even in numbers. It is used by various professions such as artists, architects, musicians and now also by traders. BTC has established a consistent pattern of price action within the said spiral and continues to do so even now.
This movement has followed a consistent pattern since 2012, despite all the volatility. The long-term trajectory shows bear market dips and uptrends repeating at similar points within the same structure. A closer look shows that the Fibonacci bull market gates (green rectangular zones) are breached after each halving (November 2012, July 2016, movements on May 15, 2020).
Considering the Fibonacci levels, we see that historically, once BTC leaves the bull market gates, it does not revisit the same levels. The 1.618 Fibonacci level acts as support shortly before BTC bounces to move forward. Currently, bull market gates are established in the $13,000 – $16,000 range. Also, relative to previous bull market lows, $26,500 is a key support given a long-term price action. Crypto Total Ventures stated,
“The charts show that Bitcoin is in the midst of a bull market and we will never see these prices again ($26.5k – $16,000).”
If Bitcoin’s continued movement remains consistent with its historical data, the king coin will likely never revisit this range.
While talking about the short-term effects of Fibonacci, some interesting regions were also highlighted. Fibonacci delineates some of the critical areas that are being actively tested, taking into account lower swings and higher peaks. $31,000 – $30,000 is an important support range in the short term. The resistance zone goes up to $33,000 – $34,300.