Trading with Fibonacci Sequences: Position Management and Profit Taking
Understanding Fibonacci Retracement Fibonacci retracement identifies potential support and resistance levels using ratios—23.6%, 38.2%, 50%, 61.8%, and 78.6%—to signal possible price bounces during market corrections. The Fibonacci sequence and increasing positions We can use the Fibonacci sequence for structured positioning, which helps us to manage risk and capital more effectively. Instead of adding the same amount of lots (or other units) at each retracement level, the Fibonacci sequence gradually increases the position size according to the Fibonacci series values (1, 1, 2, 3, 5, 8...). Example: How to proceed when increasing the volume of a long/Buy position with $BTC : Market has a clear uptrendFirst entry: open a position when price retrace to 23.6% level with a size of 1 $BTC Decline to 38.2%: if the price falls further, add 1 BTCDrop to the 50% level: add 2 BTCDrop to 61.8%: add 3 BTCDrop to 78.6%: add 5 BTC By doing this, we increase our positions when the price drops, thus reducing the average purchase price. If the market turns in our favour, the average price will be lower than our original entry price. In our example, we show position sizes in whole 1 BTC, but traders with smaller accounts should adjust the size of their first position and subsequent positions so that their overall risk matches their account size and basic risk management rules. Closing a Position in Profit Effective profit-taking strategies include: Fixed Risk-Reward Ratio (RRR): Set a predetermined RRR (e.g., 2:1) to decide when to take profits.Fibonacci Expansion Levels: Use targets like 100%, 127.2%, or 161.8% to guide profit-taking.Technical Indicators: Watch RSI, MACD, and moving averages for confirmation signals to exit.Psychological Levels: Close trades at key psychological price points or previous highs/lows. Gradual Closing Consider partial profit-taking at specific Fibonacci levels while adjusting stop-loss orders to protect gains. Risk Management Always set stop losses and adhere to risk management principles. If prices breach key Fibonacci levels, consider closing the trade to minimize losses. Conclusion Using Fibonacci for scaling positions provides a structured method for managing trades. Combining this with expansions and technical indicators enables effective profit-taking. Proper risk management and trading discipline are vital for success in the long run.
Currently, $BTC is experiencing a retrace after a price increase. Might consider applying the above strategy for experimentation. And most importantly, always remember to manage your capital wisely and strictly, in line with your own account. #BTC☀ #Write2Win #TradingSignals
In our last research, we estimated the approximate timing of the peak phase of a bull market by analyzing the patterns of previous Bitcoin price cycles.
Today’s deep dive will focus entirely on a phenomenon unique to the crypto market called altseason. We’ll try to answer the following questions: When will it start?How long will it last?Which projects could show the best performance? But first, let’s define what the altseason actually is. The altcoin season, or altseason, is a period when altcoins experience more aggressive growth than Bitcoin. In other words, it’s a time when Bitcoin’s price ($BTC ) rises, but its dominance (BTC.D) drops. We’ll consider the start of altseason to be the point in the cycle when Bitcoin’s dominance hits a local peak, and the end of altseason will be marked by a new all-time high for the TOTAL2 index (the total market cap of the top 125 coins, excluding Bitcoin). Looking Through the Lens of Past Altseasons We’ve only seen two altseasons so far, while there were three Bitcoin cycles. This is mainly because the first Bitcoin cycle didn’t have a market full of altcoins yet. It’s hard to believe now, but the total market cap of all altcoins remained under $1 billion for a long time! It wasn’t until March 1, 2017, that we saw the first wave of significant altcoin growth. At that point, Bitcoin dominance dropped from around 96% and, within less than a year, reached around 36% on January 5, 2018. Bitcoin gave up about 60% of its market dominance to altcoins, leading to the total altcoin market cap (TOTAL2) of $470 billion! The first major altseason lasted 310 days, with the index growing by around $470 billion — a 56,425% increase (or 564x). The second global altseason came during the next cycle. At the start, the total altcoin market cap (TOTAL2) was $225 billion. On January 3, 2021, Bitcoin dominance, which had peaked at around 73%, started a slow decline, eventually falling sharply until it hit its lowest point on September 8, 2022. However, only half of this 614-day decline counts as the altseason, since the other half occurred during Bitcoin’s bear phase. The peak of the TOTAL2 index happened on November 10, 2021, coinciding exactly with Bitcoin’s price peak. In total, the second altseason lasted 309 days, with the index rising by $1.5 trillion — a 650% increase (or 6.5x). What’s fascinating is the coincidence here: both altseasons from different cycles lasted almost exactly the same amount of time, down to the day! The first altseason lasted 310 days, and the second one 309. But that’s not even the most surprising discovery we’ve made. Halving’s Magical Effect on Cycle Timing In our previous research, we looked at the total duration of a market cycle. Let me remind you: we noticed that in all three past cycles, the halving occurred at 62% of the cycle’s completion. It seems like the halving really does have some sort of “magic” when it comes to market structure. Both global altseasons we described happened at the same time relative to the halving date. In cycle (II), the halving took place on July 9, 2016, and the altseason kicked off on March 1, 2017 — 235 days later.
In cycle (III), the halving was on May 11, 2020, and the altseason began on January 3, 2021 — 237 days later.
Now here’s where it gets interesting: In the previous article, we predicted that the peak of the current cycle (IV), based on the patterns of past cycles, should occur around October 18, 2025. Now, if we take the halving date of this cycle, April 19, 2024, and add 235 days, we land on December 10, 2024, marking the potential start of the next altseason. That’s very close to the trend acceleration point we predicted earlier. But what’s even more interesting is if we add 310 days (the typical altseason duration from past cycles), we get… October 18, 2025! So, using two different approaches, analyzing price actions across various tools (BTC, TOTAL2, BTC.D), we arrived at the same date for the cycle peak: October 18, 2025. Based on our analysis, this will mark the simultaneous peak for both Bitcoin and the TOTAL2 index. To sum up the timing for the altseason in this current cycle, based on the patterns of previous ones: The altseason is expected to start on December 10, 2024, around 235 days after the halving (when we might also see a new peak in Bitcoin dominance).The altseason should last for 310 days, ending with Bitcoin’s growth peak on October 18, 2025.
Note that these aren’t predictions, but the results of an objective analysis of cyclical market structures. There’s no guarantee that the patterns of past cycles will repeat exactly, so don’t take these dates as set in stone. Timing’s Clear, but What Does the Altseason Bring in Terms of Altcoin Growth? If we take a look at the top 10 best projects in terms of performance from the last cycle, a pattern emerges — most coins that performed well in the third year of the cycle (2020) went into parabolic moves in the final year (2021):
Of course, there are exceptions (like SAND and KDA), but overall, the last cycle showed that betting on relatively strong players was more rational than hunting for “dark horses.” It’s quite possible that the current cycle will follow a similar logic, with strong projects continuing to dominate. Who Are the Main Contenders for Parabolic Growth in This Cycle? If we use tables and filters on CryptoRank.io to sort all coins by year-to-date (YTD) price changes and add a filter for a market cap above $100 million, we’ll see that 7 of the top 10 strongest tokens this year are meme coins.
From a rational point of view, we have reasons to believe that the altseason might deliver the highest returns from the leaders in this sector. However, if you’re hesitant about investing in meme coins or prefer tokens from larger tech projects, let’s check out the top 10 projects of this year with a market cap above $1 billion, excluding meme coins:
Conclusion To sum it up, let’s analyze the timing and logic of past cycles and answer these key questions: When will the altseason start? According to our calculations, it’ll begin 235 days after the halving, which means December 10, 2024.How long will it last? Our estimates show it’ll run for 310 days, lasting until October 18, 2025. Which coins will perform best during the altseason? Most likely, the coins that have performed well leading up to the altseason. Right now, the main contenders for the biggest gains are meme coin leaders, alongside projects in the Blockchain, AI infrastructure, and CeFi categories. Let’s hope this cycle repeats the structure of previous ones, and we witness the much-anticipated, third global altseason. Best of luck to us all! #altsesaon #AltcoinInvesting #Altcoins👀🚀 #BTC☀ $BTC #memecoin🚀🚀🚀
EigenLayer Token Is Live 🚀 EIGEN in now trading on Binance and other exchanges. Current Price: $4.08 ATH Price: $4.48 Max Supply: 1.68B EIGEN FDV: $6.85B $EIGEN
$3.5 Billion Worth of Tokens To Be Unlocked in October 🔓 The following notable token unlocks will happen in October: $SUI $150.82M $APT $88.29M $AXS $64.22M $RON $62.21M OP $56.93M $ARB $56.46M IMX $55.44M STRK $27.97M MOCA $20.42M ZKJ $17.52M
Strong Chinese Yuan equals Bitcoin parabolic rally
How Bitcoin relates to Chinese Yuan As the pseudonymous trading expert further explained, history has shown that this is when Bitcoin “always initiates its Parabolic Rally phase” or, in other words, “when the Yuan gains strength, Bitcoin shines.” Furthermore, TradingShot noted just how strong the historical similarities are:
In fact, according to the chart shared by the analyst, similar developments occurred back in 2017 and 2020, and the current cycle was identical to the one in 2020 when the price of the maiden cryptocurrency initiated a rally right after the USDCNY pair reached its top.
Bitcoin price analysis For the time being, Bitcoin is changing hands at the price of $63,270, which indicates a 2.98% decline in the last 24 hours, a loss of 0.23% across the previous seven days, but nonetheless a gain of 7.23% over the past month, according to the most recent chart information.
On the other hand, concerns remain over Bitcoin’s short-term price trajectory as online investor interest appears to be dwindling, evident in search volume levels lower than those witnessed even in the most challenging bear markets
All things considered, Bitcoin might, indeed, be on the verge of a massive parabolic rally, particularly as other important indicators in addition to the Chinese Yuan are lining up as well, including bullish catalysts like Binance founder Changpeng Zhao’s release from prison. However, trends in the crypto market might shift unexpectedly, so doing one’s own due diligence, including keeping up with any relevant developments, such as Bitcoin news prediction, and the like, is important when investing significant amounts of money in such assets.
On the H1 timeframe, BTC is gradually retracing to the 38.2% Fibonacci level. Place partial buy orders for BTC starting at 65,000 to build a position, with TP at 67,500. If the price moves against you, continue building positions according to the levels mentioned in the post: "Trading with Fibonacci Sequences: Position Management and Profit Taking " pinned in my profile.
Is Shiba Inu Ready For A New All-Time High Above $0.00008?
Doggy-themed meme coin, Shiba Inu (SHIB), could be gearing up for a major rally to new all-time highs this bull cycle. Given the cryptocurrency’s recent bullish performance, analysts predict that Shiba Inu can surge above its all-time high of $0.000086. Shiba Inu Targets New All-Time Highs The price of Shiba Inu recently jumped from around $0.00001 to $0.00002. This significant price increase occurred in the last few weeks, hinting that the popular meme coin may be getting ready for a parabolic rally in the Fourth Quarter (Q4) of 2024. Shiba Inu price chart, suggesting that the popular meme coin was gearing up to surpass the $0.00008 mark. Shiba Inu was finally ready for a new all-time high, marking a historical milestone for the meme coin. In October 2021, Shiba Inu achieved an all-time high of $0.000086, reflecting a 75.59% increase from its current price. Notably, SHIB has been building more momentum as September wraps up, hinting at a possible strong rally in October. Moreover, with the cryptocurrency currently trading at $0.00002, it would need a 330% surge to reclaim its former peak. SHIB Maintains Powerful Momentum The price of Shiba Inu has been on a powerful upward trend in the past few weeks, achieving double-digit gains despite previous market declines. While the popular meme coin experienced its share of price declines earlier this year, Shiba Inu seems to be making a comeback, suggesting a renewed interest and demand from investors. Data from CoinMarketCap shows that SHIB has jumped by 48.20% over the past month. Additionally, the cryptocurrency saw another 45.84% increase in the last seven days, highlighting its strong price dynamics. Similarly, other meme coins like Dogecoin (DOGE) and Pepe (PEPE) have been steadily gaining momentum in the past week. Pepe has recorded a price increase of over 38% in the past week, while Dogecoin has risen by 17%. This sudden change from bearish trends to bullish underscores a significant shift in investors’ sentiment towards the meme coin market. A crypto analyst identified as ‘AllInCrypto’ on X has also acknowledged the recent positive momentum in meme coins, highlighting that Shiba Inu’s price dynamics are looking great. $SHIB #Cryptoanalyst
Elon Musk shared an AI-generated image of himself, Donald Trump, and the DOGE dog, showing support for Trump's presidential campaign and referencing the proposed Department of Government Efficiency.$DOGE
RECENTLY: Lookonchain reports that BlackRock now owns 363,626 BTC, valued at $23.68 billion, making it the third-largest Bitcoin holder after Satoshi Nakamoto and Binance, which holds roughly 550,000 BTC.
Dogecoin To The Moon? A Bullish Breakout on the Horizon.
A breakout DOGE has recently achieved from a descending channel that the asset has been stuck in for over half a year. Identified Bullish Momentum in Dogecoin The chart reveals that DOGE, which had previously been trading within a horizontal channel for roughly two years between July 2022 and July 2024, experienced fluctuations between a lower trend line of $0.05 and an upper level of $0.1181.
DOGE peaked at $0.2100 in March before entering its descending pattern. Now, signs indicate that DOGE might be breaking free from this downward trend. The longer-term chart for DOGE could be considered “constructive,” supporting his analysis with the encouraging message, “Get along little doggie.” So far, DOGE has been riding the positive wave seen in the broader crypto market. Other Bullish Indicators for DOGE’s Momentum DOGE has experienced a Relative Strength Index (RSI) and price breakout from multi-month downtrends. Furthermore, the asset has received a buy signal from the SuperTrend indicator. These developments indicate that momentum is potentially shifting toward the meme-based cryptocurrency. Before DOGE’s surge above $0.12 today, Ali had set specific conditions for a full-fledged bullish rally for the asset. These conditions included breaking the descending trendline of RSI on the daily chart and pushing past a resistance level of $0.11. #Dogecoin is gearing up for a bullish breakout! Watch for two key signals:
First, RSI breaking the descending trendline on the daily chart. And second, $DOGE surging past the $0.11 resistance With DOGE successfully achieving both conditions, the analyst’s sentiment has grown increasingly positive about the possibility of an extended rally. DOGE’s ability to break key technical levels provides a favorable outlook for further price appreciation, indicating that the current rally might not be just a short-term burst. $DOGE
Analyst predicts Bitcoin and altcoin bull run as FOMO returns
Markus Thielen, Head of Research at 10x Research, disclosed that the September rate cuts by the Federal Reserve and China’s stimulus have caused a new FOMO wave in the crypto industry. He noted that Bitcoin had surged 5%, Ethereum had risen 11%, and altcoins like SHIB, ENA, and SEI gained 36%, 51%, and 54%, respectively, since the rate cuts. Thielen’s analysis revealed an altcoin explosion and an acceleration in stablecoin minting. Chinese OTC crypto brokers reported over $120 billion (~$20B per quarter) in inflows for the last six quarters. According to the report, $10B in stablecoins were issued within the last few weeks, flooding the crypto market with liquidity that significantly surpassed Bitcoin ETF flows. He added that Bitcoin’s break above $65K was probably the first step towards the $70K mark and maybe a series of all-time highs in the near future. Analyst sees another Bitcoin and altcoin boom FOMO is Back: Are You Holding Enough Bitcoin and Altcoins to Ride the Next Wave?👇1-11) Since the Fed’s September rate cut, Bitcoin has gained 5%, while Ethereum has surged 11%, and certain altcoins have seen impressive gains—+54% for ENA, +51% for SEI, and +36% for Shiba Inu.… pic.twitter.com/QK6hExh4lk— 10x Research (@10x_Research) September 27, 2024
Thielen’s report attributed the decline in Bitcoin’s dominance and the spike in Ethereum gas fees to a surge in altcoin activity. He claimed that the ‘DeFi renaissance’ was ignited by the 10-year bond yield drop below the 4.0% threshold. The report revealed that USDC minting indicated a rise in DeFi activity as YTD stablecoin inflows reached $35 billion, pushing the total stablecoin value to over $160 billion. The report declared that Circle disproportionately accounted for 40% of the latest stablecoin inflows. It also noted that South Korea’s retail crypto activity supported this trend as daily trading volumes averaged $2 billion, proving that altcoins’ trade dominance surpassed Bitcoin. “In just the first half of this year, inflows have already exceeded $40 billion, with 55% of the total value coming from transactions over $1 million, likely driven by high-net-worth individuals or corporate entities.”–Markus Thielen Thielen observed that the Fed rate cuts and China’s stimulus measures could trigger significant outflows of capital from China into the crypto market since over 55% of Bitcoin was mined by Chinese pools. The Chinese stimulus plan impacts crypto According to the analyst, the $278 billion Chinese stimulus plan fueled global liquidity and ignited a parabolic rally in crypto prices. The surge in liquidity coincided with a drop in Bitcoin’s 30-day realized volatility to 41%. Thielen noted that institutional traders were likely to take on bigger positions with lower volatility. Santiment shared information showing a 43% surge in Shiba Inu’s price, a potential indication of FOMO. The analytics firm considered three on-chain metrics: volume, circulation, and whale transaction count. According to Santiment, Shiba Inu’s social dominance increased; the volume, circulation, and whale transactions spiked to 10-week highs. Thielen claimed that a Q4 rally was likely, as a major bull run in the crypto space was on the horizon, and it could spark more FOMO across the industry.