Bitcoin and other assets often develop support and resistance Fibonacci level, either through extension or retracement. Ratios are based on the Fibonacci sequence, which is closely related to the Golden Ratio.
With top cryptocurrencies tied to the math, the Golden Ratio can provide clues as to where bitcoin is headed in its latest market cycle, and if bottomed out.
Cryptocurrency and math: more than just code and geometric shapes
Bitcoin code is built entirely on math, its distribution protocol is also steeped in math, and everything else about it. scarce supply of 21 million BTC Half is slashed every four years, and the sum of the incidence is often an imbalance of supply versus demand in favor of price increases.
even chart patterns and technical indicators There are little more than math – hand drawn geometric figures and data represented via graphical overlays and oscillators.
Related Reading | Fibonacci Day: How to Use Mathematics to Trade Crypto
But can math also be used to find the top and bottom of bitcoin? One of the most accurate tools for picking the top of each market cycle is said to be pie cycle indicator and is based on mathematical constants. And according to one trader, the Golden Ratio is how to find each bitcoin bottom up during a bull market.
The crypto asset has historically retraced to the 1.618 Fibonacci ratio | Source: BTCUSD on TradingView.com
How the Gold Ratio Could Act as Bitcoin’s Bottom Before New Highs
According to pseudonymous analyst, after fully recovering the 1.0 Fibonacci Ratio and breaking above it, bitcoin then exploded through the 1.618 Golden Ratio, only to reclaim it later. Testing this again marks the last major correction before the final bullish impulse that took the cryptocurrency to its true cycle top.
As mentioned above, other mathematical instruments have called the bicycle the top. However, equipment manufacturer says The signal-giving crossover was achieved so narrowly, it leaves room for another cycle top a few months later.
Related Reading | Mathematical Mystery: Why Bitcoin Rally Stopped at the Golden Ratio?
Bitcoin price is trying to hold close to $40,000 after a deep drop of $30,000 and one of the worst monthly selloffs on record. but she sold out right to gold ratio As the cryptocurrency has been during previous market cycles and each time it was to the downside.
Not only did the emerging digital asset reclaim the highs, it soared another 500% from the lows. The math is rarely wrong when it comes to cryptocurrencies, as we now know, and another similar climb would push the price of bitcoin above $100,000. coin.
Featured image from iStock Photos, Charts from TradingView.com