ETH/BTC Weekly Closing Above 0.702 Fibonacci - A Bullish Signal
The recent weekly close of ETH/BTC above the 0.702 Fibonacci retracement level is a significant bullish indicator. Here's why:
- Morning Star Pattern: The formation of a "Morning Star" candlestick pattern on the weekly chart suggests a potential reversal of the prior downtrend. This pattern typically occurs after a period of declining prices and signals rising buying pressure.
- Fibonacci Retracement: Fibonacci retracement levels are key technical analysis tools used to identify potential support and resistance zones. The 0.702 level is not a standard Fibonacci retracement level (which are typically 23.6%, 38.2%, 50%, 61.8%, and 100%). However, traders sometimes use more precise Fibonacci calculations, and 0.702 could represent a significant level within the current ETH/BTC price structure.
- Confirmation of Trend Reversal: Closing above this 0.702 Fibonacci level confirms the bullish sentiment suggested by the Morning Star pattern. This indicates that buyers are gaining control and that the price could potentially continue to rise.
In simpler terms:
Imagine ETH/BTC was in a downtrend, like a ball rolling down a hill. The Morning Star pattern is like the ball suddenly stopping and starting to roll back up. The 0.702 Fibonacci level acted as a hurdle or a resistance point. ETH/BTC jumping over this hurdle is a strong sign that it has enough momentum to continue moving upwards.
Mega confirmation would be this weekly candle close above 0.04 Say
Important Note: While this is a positive sign, it's crucial to remember that no technical indicator guarantees future price movements. Always combine this information with other analysis tools and risk management strategies.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.