TheGrinder on Nostr: nobody seems understand how a fully retraced Fibonacci is setting the direction. ...
nobody seems understand how a fully retraced Fibonacci is setting the direction. Institutional has no problem in triggering a profit take after having more than tripled their positions during last years "bear market". The Fibonnaci is one of the most used long-term indicators from the Forex and stonks world and while brokers accumulate during a retracement with every confirmed level (blue lines) they expand their exposure to the market while their principal continues to gain value. So with every level they can add-on to their position.
The retracement is based on the 2020 ATH at 69k to the 2023 low of 16K. When Bitcoin hit 69k recently the Fibonacci cycle completed which prompts institutions to trigger their profit take. And no, they don't care about the halving, they're ready for that too.
For the last couple of weeks Bitcoin has been moving sideways between the retraced top (now expanded to 72k) and the .786 FIB levels. But was you can see we've only created "lower highs" during upward attempts while the .786 showed strong support. However, good liquidations take time especially after being close to 400% so the .786 only represents a marginal gains for institutional traders. The ideal case would be a dump to the 0.5 sitting at 44k representing only a 40% market correction. However, even a correction to the .618 would only represent a 30% market correction leaving institutions with ample gains to expand their positions into the bull market.
Remember, I don't make the rules. This is decades of brokerage in action and I'm just trying to explain them to you.
The retracement is based on the 2020 ATH at 69k to the 2023 low of 16K. When Bitcoin hit 69k recently the Fibonacci cycle completed which prompts institutions to trigger their profit take. And no, they don't care about the halving, they're ready for that too.
For the last couple of weeks Bitcoin has been moving sideways between the retraced top (now expanded to 72k) and the .786 FIB levels. But was you can see we've only created "lower highs" during upward attempts while the .786 showed strong support. However, good liquidations take time especially after being close to 400% so the .786 only represents a marginal gains for institutional traders. The ideal case would be a dump to the 0.5 sitting at 44k representing only a 40% market correction. However, even a correction to the .618 would only represent a 30% market correction leaving institutions with ample gains to expand their positions into the bull market.
Remember, I don't make the rules. This is decades of brokerage in action and I'm just trying to explain them to you.