Bitcoin Price And The Golden Ratio Bottom


In this episode of NewsBTC’s Daily Technical Analysis VideosIn this article, we are examining how Bitcoin could have bottomed at the 1.618 Fibonacci Extension, using the Elliott Wave Theory.

See the video below:

Video: Bitcoin (BTCUSD) Price Analysis: September 29, 2022

Is Bitcoin Bottoming At The Golden Ratio?

in Elliott Wave Theory, corrections come in ABC patterns. Taking the Fibonacci retracement tool to draw from the bottom to the top of wave A will provide the target of the Fibonacci extension where the retracement of wave C may end. The wick that reached $17K touched exactly 1.618 Fibonacci very precisely.

1.618 is the golden ratio, also known as the divine ratio.

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Bitcoin downtrend stops at precisely the golden ratio | Source: BTCUSD on TradingView.com

Previous bear market bottoms are defined with golden precision

Shocked by this discovery, we used the same strategy to scan the 2018 bear market. Lo and behold, the target ended at Golden Ratio once again. To illustrate this, we have drawn the descending triangle of wave B, and taken the Fibonacci extension from the bottom of wave A to the top where it started. As you can see, this anticipate the bottom of the bear market just right.

Zooming out further, could this really have happened in the 2015 bear market as well? Adding after another ABC correction, the same pattern fits, although not exactly as in the rest of the analysis. However, it is accurate enough that the golden ratio can clearly be a factor in where Bitcoin eventually falls.

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Could the Fibonacci project be the next major peak in cryptography?

We now know that dropping the extensions from wave A gives us the bottom of wave C… hopefully. But how does this work when dropping a target to the upside? From the peak of 2017 to the bottom of the bear market, the top of the bull market is expected for 2021.

If the same applies to the next bull market, just like every bear market repeats, the golden ratio could take bitcoin to a price of over $161,000 per coin.

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