The Fibonacci theory is widely used in crypto trading to analyze price movements. It is based on a numerical sequence where each number is the sum of the two preceding ones. In trading, Fibonacci levels such as 23.6%, 38.2%, 50%, 61.8% are used to help determine potential price retracement points.

When the price of a cryptocurrency rises or falls, traders use these levels to predict where a correction or continuation of the trend may occur. For example, if Bitcoin rises sharply, it may retrace to one of the Fibonacci levels before rising again.

This method helps to identify support and resistance zones, making it a useful tool for market analysis.

Have you tried applying Fibonacci in trading? 🚀