đđRelationship between Fibonacci numbers and cryptocurrencies.
The relationship between Fibonacci numbers and cryptocurrencies is neither coincidental nor esoteric: it is a powerful technical tool that many traders use to anticipate price movements and design visual strategies that generate debate and engagement.
đ˘ What is the Fibonacci sequence?
⢠It is a mathematical series where each number is the sum of the two preceding ones: 0, 1, 1, 2, 3, 5, 8, 13...
⢠From this sequence derive key proportions such as 0.618, 0.382, 0.236, which appear in natural patterns, art, architecture... and also in financial markets.
đ Application in Crypto: Fibonacci as an emotional map of the market
1. Fibonacci Retracement
⢠It is used to identify levels where the price could correct before continuing its trend.
⢠Visual example: after a rise in BTC, the levels 0.382, 0.5, and 0.618 mark areas where traders expect bounces or accumulation.
2. Fibonacci Extension
⢠Projects possible bullish targets after a correction.
⢠Ideal for asking questions like: âHow far can #Ethereum go if it breaks resistance?â â levels such as 1.618 or 2.618 are drawn.
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