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BTCUSD Retracement Strategy Method & Bitcoin Retracement Trading for Upwards BTCUSD Trend

How Do You Draw Fib Retracement for BTCUSD Uptrend?

The Fib retracement levels tool is placed on a chart in an up-ward bitcoin trend market and this Fibonacci Retracement areas tool then calculates the bitcoin price retracement levels for the bitcoin upward trend on the chart. Fibonacci retracement levels tool is used by many bitcoin traders as a bitcoin retracement trading indicator.

In the Fibo Retracement Strategy Method example illustrated below the bitcoin price is moving up between bitcoin chart point 1 & bitcoin chart point 2 then after bitcoin chart point 2 bitcoin price retraces down to 50.0 % Fib retracement level then bitcoin price continues moving up in the original upwards trend. Note that this Fibonacci retracement levels technical indicator is drawn from bitcoin chart point 1 to bitcoin chart point two in the direction of the Bitcoin trend (Upwards Bitcoin Trend Direction).

Because we know that this is just a bitcoin price retracement based on our bitcoin trend - using this Fib retracement levels indicator - we place a buy bitcoin order just between the levels - 38.2% Fibonacci retracement levels and 50.0% Fib retracement levels & our stop loss bitcoin order just below 61.8% Fib retracement level.

How Do I Read a Bitcoin Retracement on an Upward Bitcoin Trend?

How Do I Analyze a Retracement on an Upward Trend?

Explanation of Bitcoin Fibo Retracement Bitcoin Strategy Example

Once the bitcoin price hit the 50.0% Fibonacci bitcoin price pull back level, this Fib retracement level provided a lot of support for the bitcoin price, and afterward bitcoin price then resumed the original upwards bitcoin trend & continued to move up.

23.6% Fibonacci bitcoin price retracement level provides minimum support for the bitcoin retracement and is not an ideal place to set a bitcoin order.

38.2% Fibonacci bitcoin price retracement level provides some support but bitcoin price in this examples continued to retrace up to the 50% Fibo Retracement level.

50.0% Fibonacci bitcoin price retracement level provides a lot of support for the bitcoin price and in this example - this was the ideal place to place a buy bitcoin trade order.

For this Fibonacci Retracement Strategy Method example - the bitcoin price retracement reached the 50.00% Fibonacci bitcoin price retracement level - but most of the times the bitcoin price will retrace up to 38.2% Fibonacci bitcoin price retracement level and therefore most of the time this is where bitcoin traders set their buy limit bitcoin orders at the 38.2% Fibonacci bitcoin price retracement level - while at the same time placing a stop loss bitcoin order just below 61.8% Fibonacci bitcoin price pullback level.

Interpret Bitcoin Retracement on an Upward Bitcoin Trend

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