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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 upwards trend on the charts. Fib retracement levels indicator is used by many bitcoin traders as a bitcoin trading retracement technical indicator.

In the Bitcoin Retracement Method example illustrated below the bitcoin price is heading up between chart point 1 & chart point two then after chart point two it retraces downward 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% & 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 to Trade Bitcoin Price Retracement on Upward Bitcoin Trend

How Do You Trade Bitcoin Price Retracement on Upward Bitcoin Trend - Fibonacci Retracement Levels Trading

Explanation for the Above BTCUSD Trading Fibonacci Retracement BTCUSD Strategy Example

Once the bitcoin price hit the 50.0% Fibo retracement area, this retracement area 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 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, & the same time placing and setting a stop just below 61.8% Fib retracement.

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