"Fibonacci Retracement: A Trader’s Compass in the Bitcoin Market"

Fibonacci retracement is a powerful tool in technical analysis that helps traders identify possible support and resistance levels. It works by measuring the distance between a significant high and low on a chart and applying key Fibonacci ratios to that range. These ratios are derived from the famous Fibonacci sequence introduced by Leonardo Fibonacci in the 13th century.

This sequence, where each number is the sum of the two before it, forms ratios like 23.6%, 38.2%, 50%, 61.8%, and 78.6%—figures that often appear in nature and, interestingly, in financial markets as well.

In Bitcoin trading, traders use these levels to spot where price corrections might pause or reverse before resuming the trend. These zones can offer valuable insight for setting entries, exits, and stop-loss levels.

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