BTCUSD Retracement Strategy and BTCUSD Retracement Trading for Upward Bitcoin Trend
How Do I Draw Fibonacci Retracement for Bitcoin Uptrend?
The Fibonacci retracement indicator is placed on a cryptocurrency chart in an upward bitcoin trending market and this Fibonacci Retracement indicator then calculates the retracement levels for the crypto upward 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 bitcoin trading price is moving up between chart point 1 & chart point 2 then after chart point 2 it retraces down to 50.0% retracement level then bitcoin trading price continues moving up in the original upward cryptocurrency trend. Note that this Fibonacci retracement technical indicator is plotted from point 1 to point 2 in direction of the Bitcoin trend (Upwards Direction).
Because we know this is just a retracement based on our cryptocurrency chart bitcoin trend - using this Fibonacci retracement indicator, we put a buy order just between the levels 38.2% and 50.0% retracement levels and our stop loss just below 61.8% retracement level. If you had put a buy at this point in the trade example illustrated below you would have made a lot of pips after the bitcoin trading price retracement reached the Fibonacci 50.0% level and then continued moving in the original upward cryptocurrency trend.
How to Trade Bitcoin Price Retracement on Upwards Bitcoin Trend - Fibonacci Retracement Levels Trading
Explanation for the Above BTCUSD Trading Fib Retracement BTCUSD Trading Strategy Example
Once the bitcoin trading price hit the 50.0% Fibonacci retracement level, this retracement level provided a lot of support for the bitcoin trading price, and afterward btcusd trading market then resumed the original upwards bitcoin trend & continued to move up.
23.60% Fibo retracement level provides minimum support and is not an ideal place to set a bitcoin trade order.
38.2% Fibonacci retracement level provides some support but bitcoin price in this example continued to retrace upto the 50% zone.
50.00% Fibo retracement level provides a lot of support & in this example, this was the ideal place to place a buy bitcoin trade order.
For this Bitcoin Retracement Strategy example, the bitcoin trading price retracement reached the 50.0% Fibonacci retracement level, but most of the time the btcusd trading market will retrace up to 38.2% Fib retracement level and therefore most of the time bitcoin traders set their buy limit bitcoin orders at the 38.2% Fibonacci retracement level, while at the same time placing a stop just below 61.8% Fibonacci retracement level.
