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BTCUSD Retracement Trades in Uptrends - Bitcoin Retracement Strategy

How Do You Draw Fibonacci Retracement for Bitcoin Uptrend?

Place the Fibonacci retracement tool on an upward Bitcoin trend chart. It calculates retracement levels for the uptrend. Many Bitcoin traders use this tool as a key retracement indicator.

In the subsequent illustration of the Bitcoin Retracement Method, observe the bitcoin price escalating between chart reference point 1 and point two. Following point two, the price then retreats down to the 50.0% retracement level before resuming its ascent along the initial upward trajectory. Note that this Fibonacci retracement technical indicator is charted from point 1 to point 2, following the prevailing direction of the Bitcoin trend (upwards).

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 position 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

To trade Bitcoin retracements during an upward trend, Fibonacci Retracement Levels offer a robust trading strategy.

Explanation of the Previous BTCUSD Trading Fibonacci Retracement Strategy Example

If Bitcoin reaches its 50.0% Fibonacci retracement area, this zone often serves as strong support for price movement. In this case, the BTC/USD market resumed its upward trend afterward and continued climbing.

23.60% Fibo retracement level provides minimum support and is not an ideal place to set a bitcoin trade order.

The 38.2% Fibonacci retracement level offers some support, but in this scenario, Bitcoin's price continued to retrace to 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 order.

For this Bitcoin Retracement Method example, the btcusd 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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