Mathematical Mystery: Why Did The Bitcoin Rally Stop At The Golden Ratio?

Tony "The Bull" Severino

1 year ago

3 mins read

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Bitcoin is one of the most interesting and powerful pieces of mathematical code out there, launched as an open source project by the mysterious Satoshi Nakamoto.

In yet another one of the many ways math and mystery come together in relation to the cryptocurrency, its origins, and the underlying technology, the current peak in recent price action also just so happens to taken place perfectly at the golden ratio. But why?

Math, Mystery, And So Much More: Crunching The Cryptocurrency Numbers

Math is one of those love it or hate it subjects in school, but no one can discount just how powerful it is when used effectively. It is by definition “the study of quantity, structure, space, and change.”

When it comes to Bitcoin, math is everywhere around it. The hard-capped “quantity” of BTC will always remain at 21 million, while the “structure” of its code maintains that maximum cap.

“Space” in this case, isn’t in reference to moonshots, but in the geometric shapes and patterns that appear on Bitcoin price charts, which “change” with each buy or sell order.

Math is integral to quantifying data in fundamental analysis, and measurements go into plotting the lines and averages of technical indicators.

However, there’s no easy way to explain why the cryptocurrency’s recent bull rally, has topped out at a key mathematical area.

Why did Bitcoin stop at the golden ratio? | Source: BTCUSD on TradingView.com

Bitcoin Bull Rally Takes Pause At Golden Ratio, But Why?

Strangely, the current high in Bitcoin price is $61,800. At first glance, nothing appears to out of the ordinary about the number. But there very well could be some serious significance that could explain why momentum is beginning to turn around.

The number, now more than three times its 2017 record, just so happens to be 61.8% to the price point most investors are HODLing for, which is $100,000 per coin.

The golden ratio itself is 1.618, with the inverse as 0.618. The number is used in technical analysis as one of the Fibonacci retracement levels with the most significance.

Fib retracement and extensions are measured from lows to highs or vice versa, while in the case of the current rally, price action stopped instead at 61.8% of the way to the speculate target of $100,000.

It is a theory that cannot be proven, nor is it fully understood why the golden ratio is found so commonly throughout nature and within the price charts of assets like cryptocurencies.

Renowned twentieth-century artists such as Salvador Dalí have included the golden ratio within their works, “believing this to be aesthetically pleasing,” according to Wikipedia.

It also appears in various places within nature, such as within the pattern of leaves, or the spiral of the Nautilus shell. But could it also be the ideal zone for the speculators to begin taking profit before the bull market keeps going?

Featured image from Deposit Photos, 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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