Historically, the ends of the last three BTC bear markets have shown a strikingly similar pattern, especially in relation to the Fibonacci retracement levels.
The 0.618 Fibonacci Level: A Key Indicator
The Fibonacci retracement tool is widely used in technical analysis to identify potential reversal levels. The 0.618 level, often referred to as the 'golden ratio,' has consistently acted as a critical turning point in BTC bear markets.
Historical Analysis:
April 2013: BTC reached the 0.618 fib level at $170, followed by a 52% correction to $88.
June 2016: A similar scenario with the 0.618 fib level at $780, leading to a 40% correction to $313.
June 2019: The 0.618 level was reached at $13,890, but an extraordinary 71% correction occurred, dropping to $3,858. Notably, this was influenced by the COVID-19 pandemic; otherwise, it might have mirrored the previous 52% correction pattern.
2023 Forecast:
As we approach the end of January 2023, BTC is on the verge of hitting the 0.618 Fibonacci level at $48,456. Based on past trends, a correction of around 40% could be anticipated before the market transitions into a bull phase. This prediction aligns with the broader market dynamics and current indicators.
The BTC Spot ETF Factor:
The launch of the BTC Spot ETF could be a pivotal 'sell the news' event, potentially triggering the correction. Historical patterns and market psychology often see such events act as catalysts for significant price movements.
For traders and investors in BTC, keeping a watchful eye on the 0.618 Fibonacci level is advisable. Given the historical precedence and current market conditions, preparing for a potential correction could be a prudent strategy before the expected bull market.
Be well,
Primordial
The 0.618 Fibonacci Level: A Key Indicator
The Fibonacci retracement tool is widely used in technical analysis to identify potential reversal levels. The 0.618 level, often referred to as the 'golden ratio,' has consistently acted as a critical turning point in BTC bear markets.
Historical Analysis:
April 2013: BTC reached the 0.618 fib level at $170, followed by a 52% correction to $88.
June 2016: A similar scenario with the 0.618 fib level at $780, leading to a 40% correction to $313.
June 2019: The 0.618 level was reached at $13,890, but an extraordinary 71% correction occurred, dropping to $3,858. Notably, this was influenced by the COVID-19 pandemic; otherwise, it might have mirrored the previous 52% correction pattern.
2023 Forecast:
As we approach the end of January 2023, BTC is on the verge of hitting the 0.618 Fibonacci level at $48,456. Based on past trends, a correction of around 40% could be anticipated before the market transitions into a bull phase. This prediction aligns with the broader market dynamics and current indicators.
The BTC Spot ETF Factor:
The launch of the BTC Spot ETF could be a pivotal 'sell the news' event, potentially triggering the correction. Historical patterns and market psychology often see such events act as catalysts for significant price movements.
For traders and investors in BTC, keeping a watchful eye on the 0.618 Fibonacci level is advisable. Given the historical precedence and current market conditions, preparing for a potential correction could be a prudent strategy before the expected bull market.
Be well,
Primordial