BTC : Fibonacci Grid
Updated
Time and Space only exist between two points.
You can build an entire grid system using only two points, and multiples of the distances between those two points.
On a price and time scale, this can be useful in establishing critical levels used to assist us with trading.
Which two points you choose can unfold entirely different results.
In this example,
two relatively recent points were chosen to maximize accuracy and effectiveness of the grid in relation to the most current candles.
This idea is presented using the 2Day timeframe to allow the display of the entire history of Bitcoin.
Finding the two points used to build this particular grid structure
is as simple as locating the intersection of price level 0 and time level 0 (0,0),
and the intersection of price level 1 and time level 1 (1,1).
Multiples of the vertical distance between the two points are extended vertically on the price scale,
and multiples of the horizontal distance between the two points are extended horizontally on the time scale.
Within these unitary extensions, Fibonacci-numbered levels are specifically highlighted as vital extension levels based on the two chosen points.
Don't forget to also view the chart using the linear price scale for an alternate perspective.
Any two levels on the same scale can be further divided if needed to assist with action on smaller scale frames :
For more information on how Fibonacci levels can interconnect and overlap,
see this shadow-banned educational idea :
Finally, thank you to my followers and to those who enjoyed viewing these ideas.
Please feel free to give them a boost if you like them.
// Durbtrade
Note
Here is an example of an alternate division on the 2Day timeframe, overlaid between levels 8 and 14 of the main grid :
Alternate divisions can help decipher price action between the main levels.
Note
7/28/24Up Till Now / Where We Are -
Bitcoin continues to dance with the level 13 horizontal gridline.
Level 13 is a fibonacci number multiple
of the distance in price between our 2 chosen points of origin
that form this particular grid structure.
All fibonacci multiples are highlighted in white on the chart,
on both the price scale and the time scale.
The level 13 horizontal sits at the price of $68586.
Breaking and sustaining any price action above this resistance level has proven to be difficult.
In fact, in 2021, the absolute pinnacle of the bull run reached less than $450, or half of 1%, above level 13.
While bitcoin has indeed broken above level 13 in the last 5 months,
even reaching above level 14 for a brief period in establishing the new all time high at $73,755 per Bitcoin,
any substantial or sustained price action above level 13 remains to be seen.
And up until now, level 13 has pretty much only exhibited characteristics of resistance, not of support.
Each price action rejection that has recently occurred involving level 13
has been followed by an even deeper dip to a lower level... 12, 11, 10,
and even trying to tap level 9 line, though it didn't quite reach it.
And, so far, price has risen back up to level 13 after each dip.
Another Rejection? -
Seeing multiple rejections at level 13 in the last 5 months, and deeper and deeper dips going as low as 53.6k,
the price of Bitcoin could find its way down to the next highlighted fibonacci numbered multiple below level 13,
which is level 8, or $48,158 (50k in general).
Break On Through? -
Above level 13, the next major boss level is level 21, which stands at $101,271.
Level 21, or 100k in general, also makes a lot of sense as a reasonable next resistance
in that it is a major psychological level among traders,
and would be a massive milestone to reach along Bitcoins journey thus far.
Beyond 100k, the next levels of interest are level 34 at $154,384 and level 55 at $240,181.
Finally, here is an update of the alternate division example :
Thanks for checking out this idea update.
Thoughts? Feel free to comment.
// Durbtrade
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