I recently had a winning trade on BTC that highlighted the power of the Fibonacci retracement tool. BTC had just completed a rally and was starting to pull back. I used the Fibonacci tool to mark the 0.618 level, which coincided with a previous resistance-turned-support zone. As the price approached this level, I noticed bullish divergence on RSI. That was my signal. I entered a long with a tight stop just below the fib zone. Within the next few sessions, BTC bounced hard and continued its upward trend. I took profits at the previous high. This trade was textbook. It combined technical tools with confluence and patience. Fibonacci levels aren’t magical — but when aligned with other signals, they provide powerful entries. I now include them in every trade setup. This strategy helps define zones of interest and keeps me from chasing trades.
