Bitcoin Retracement Strategy and Bitcoin Retracement Trading for Downward Bitcoin Trend

How Do I Draw Fibonacci Retracement for Bitcoin Downtrend?

The fibonacci retracement indicator is placed on a cryptocurrency chart in an downward bitcoin trending market and this Fibonacci Retracement indicator then calculates the retracement levels for the crypto downward cryptocurrency trend on the cryptocurrency charts. Fibonacci retracement levels cryptocurrency indicator is used by many bitcoin traders as a bitcoin trading retracement trading technical indicator.

In the Bitcoin Retracement Strategy example illustrated below the btcusd trading market is moving down between chart point 1 & chart point 2, then after chart point 2 the bitcoin price then retraces up to 38.2% retracement level then it continues heading downwards in the original downward cryptocurrency trend. Note that this Fibonacci retracement indicator is plotted from point 1 to point 2 in direction of the Bitcoin trend (Downwards Direction).

Because we know this is just a retracement based on the cryptocurrency chart bitcoin trend we put a sell order at 38.2% Fibonacci retracement level and a stop loss just above 61.8% Fibonacci retracement level.

If you had put a sell order at the 38.2% Fibonacci retracement level as shown on the bitcoin trade below you would have made a lot of pips afterwards after the bitcoin price reached the 38.2% Fibonacci retracement level and then resumed the downward cryptocurrency trend.

In this trade the retracement of bitcoin price reached 38.20% Fibo retracement level & did not get to 50.0% Fibo retracement level. It is always good to use 38.2% Fibo retracement level because most times the bitcoin price retracement doesn't always get to 50.0% Fibo retracement level.

How to Trade Bitcoin Price Retracement on Downward Bitcoin Trend - Fibonacci Retracement Areas on Bitcoin Chart

Explanation for the Above Bitcoin Trading Fibonacci Retracement Bitcoin Trading Strategy Example

The above Fibonacci Retracement Strategy example is a cryptocurrency retracement trading setup where the bitcoin price retraces immediately after touching the 38.2% Cryptocurrency Chart Fibo Retracement Level.

This Fibonacci Retracement level provided a lot of resistance for the bitcoin price retracement, this was the best place for a trader to set a sell limit bitcoin order as the btcusd trading market quickly moved down after hitting this 38.2% Fibonacci retracement level.