The Fibonacci Sequence And Why $30K Bitcoin Is So Important

Tony "The Bull" Severino

1 year ago

3 mins read

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Bitcoin price action is still stuck at support, but unable to break it after repeated attempts. Throughout the asset’s history, after any support has been tested so many times, it ultimately breaks.

However, the Fibonacci sequence and a key mathematical level could explain why $30,000 is so critical to the cryptocurrency market cycle, and why even though it has been tested again and again, it very well could hold unlike past instances of sideways action. Here’s why.

Sideways Stalemate Ready To Break, But Which Way?

The crypto market is at a standstill, thanks to a shocking more than 50% collapse that wiped out trillions from the total market cap. Bitcoin, Ethereum, and other assets all plunged from highs within a month, and have been trading sideways since.

More downside is possible, as valuations ran wild though the start of 2021. But it is just as plausible at this point in time and given how severe the correction was that a recovery happens and upside resumes.

The indecision and lack of direction is the exact reason for the stalemate. However, there could be a theory steeped in math that helps make the potential outcome more clear.

1.618 Fibonacci extension is always important to this phase of the bull run. | Source: BTCUSD on TradingView.com

Why Fibonacci Could Decide The Fate Of The Bitcoin Bull Run

According to one prominent crypto analyst, in a detailed analysis with many layers, the $30,000 zone Bitcoin is especially important. The primary factor in this, is due to the level being the 1.618 Fibonacci extension of the former all-time high.

Basically, multiply $20,000 by 1.618 and the sum is the zone that must hold for the bull run to behave like past cycles. Not behaving exactly like past cycles doesn’t necessarily mean the magic has ended, but given the sample size there is no denying the importance.

After breaking out past each all-time high, Bitcoin rallies, then retraces back to the 1.618 Fibonacci extension. Fibonacci extensions and retracement levels are percentages based on the Fibonacci sequence – named after mathematician Leonardo Bonacci of Pisa.

It isn’t quite clear as to why these levels matter so much, but the numbers and related ratios appear to present in nearly all naturally occurring structures and things.

https://twitter.com/silviainsydney9/status/1415156076098424833

Math is mysterious and complex, and one of the only complete truths in the world today. Math is why the likes of Paul Tudor Jones trusts Bitcoin so much – so why not trust this mathematical theory?

Follow @TonySpilotroBTC on Twitter or via the TonyTradesBTC Telegram. Content is educational and should not be considered investment advice.

Featured image from iStockPhoto, Charts from TradingView.com

Tony "The Bull" Severino

Tony "The Bull" Severino, CMT, is a distinguished figure in the cryptocurrency analysis sector, renowned for his in-depth technical expertise and innovative approach to market trends. As the Head of Research at NewsBTC, Tony leads a team dedicated to providing cutting-edge insights and forecasts, helping both novice and experienced traders navigate the complexities of the crypto market.
A seasoned Chartered Market Technician, Tony's prowess in identifying and capitalizing on market patterns is unmatched. His academic and professional journey in market analysis has firmly established him as a leading authority in technical trading strategies. Tony’s approach is heavily influenced by the principles of Elliott Wave Theory, a method known for its rigorous assessment of investor psychology and price movements.

Beyond his role at NewsBTC, Tony is the visionary founder of CoinChartist.io, an educational platform aimed at demystifying the nuances of cryptocurrency trading. CoinChartist.io serves as a valuable resource for traders seeking to enhance their technical analysis skills. The platform offers a range of learning tools and resources designed to empower traders with the knowledge to make informed trading decisions.

In addition to his educational initiatives, Tony is a prolific author and a dominant voice in the crypto community. He writes the CoinChartist VIP newsletter, a weekly dispatch that has become a staple among crypto enthusiasts, revered for its insightful analysis and actionable trading advice. This newsletter has consistently ranked as a best-seller on SubStack, boasting thousands of subscribers who rely on Tony’s expertise to guide their trading strategies.

Tony is also celebrated for his literary contributions to the field. He is the author of the highest-rated Crypto Trading Journal on Amazon.com, a testament to his ability to communicate complex trading concepts in an accessible manner. This journal is widely regarded as an essential tool for traders aiming to track their progress and refine their strategies.

Before his ascent in the financial analysis world, Tony honed his skills in journalism. His background in this field has endowed him with a unique ability to present intricate market dynamics in a clear and compelling manner, making his insights highly sought after by a broad audience that ranges from casual readers to professional traders.
His professional affiliations underscore his commitment to excellence and continuous learning. As a partner of Elliott Wave International and TradingView, Tony collaborates with other leading experts to enhance his knowledge and skills. His active membership in the CMT Association further aligns him with the highest standards of industry practices and ethics.

Tony’s nickname, "The Bull," aptly reflects his aggressive and optimistic outlook on the cryptocurrency markets. His forecasts often anticipate significant upturns, earning him a reputation for bullish predictions that have frequently led to lucrative outcomes for those who follow his advice.

In summary, Tony "The Bull" Severino, CMT, is more than just a technical analyst; he is a mentor, educator, and innovator whose influence in the cryptocurrency space continues to grow. His dedication to advancing the understanding of market forces and his commitment to providing high-quality, reliable analysis make him a pivotal figure in the world of cryptocurrency trading.

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