BTCUSD Retracement Strategy Method & BTCUSD Retracement Trading for Upwards Bitcoin Trend
How Do You Draw Fibonacci Retracement for Bitcoin Uptrend?
The Fibonacci retracement indicator is placed on a chart in an up-ward bitcoin trending market & this Fibonacci Retracement indicator then calculates the retracement levels for the upward trend on the charts. Fibonacci retracement levels indicator is used by many bitcoin traders as a bitcoin trading retracement technical indicator.
In the Bitcoin Retracement Strategy Method example illustrated below the bitcoin price is heading up between chart point 1 and chart point two then after chart point two it retraces down to 50.0 % retracement level then bitcoin price continues moving up in the original upwards trend. Note that this Fibonacci retracement technical indicator is plotted from point 1 to point 2 in direction of the Bitcoin trend (Up-ward Direction).
Because we know this is just a pull back based on our chart bitcoin trend - using this Fibonacci retracement technical indicator, we put a buy order just between the levels 38.2% and 50.0% retracement levels & our stop loss order just below 61.80 % 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 price retracement reached the Fibonacci 50.0% level and then continued moving in the original upward trend.
How Do I Trade Bitcoin Price Retracement on Upward Bitcoin Trend - Fibonacci Retracement Levels Trading
Explanation for the Above BTCUSD Trading Fib Retracement BTCUSD Trading Strategy Example
Once the bitcoin price hit the 50.0% Fibo retracement area, this retracement level provided a lot of support for the bitcoin price, and afterward btcusd market then resumed the original upwards bitcoin trend and 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% Fib 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 Method example, the btcusd crypto price retracement reached the 50.00 % Fib retracement area, but most of the time the btcusd market will retrace up to 38.2% Fibo retracement level & therefore most of the time bitcoin traders set their buy limit bitcoin orders at the 38.2% Fib retracement level, while at the same time placing a stop just below 61.8% Fibonacci retracement level.
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