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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. Fib retracement levels tool is used by many bitcoin traders as a bitcoin retracement trading indicator.

In the Fibo Retracement Strategy Method example shown below the bitcoin price is moving up between bitcoin chart point 1 and 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 and initial upwards trend. Note that this Fibonacci retracements 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% Fib retracements and 50.0% Fib retracement levels & our stop loss bitcoin order just below 61.8% Fib retracement.

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

How Do I Interpret a Retracement on an Upward Trend?

Explanation of Bitcoin Fib Retracement Bitcoin Strategy Example

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

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

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

50.0% Fibonacci bitcoin price retracement zone 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 zone - but most times the bitcoin price will retrace up to 38.2% Fibonacci bitcoin price retracement zone and hence most of the time this is where bitcoin traders set their buy limit bitcoin orders at the 38.2% Fibonacci bitcoin price retracement zone - while at the same time placing a stop loss bitcoin order just below 61.8% Fibonacci bitcoin price pull back level.

Interpret Bitcoin Retracement on an Upward Bitcoin Trend

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