Fibonacci Day: How To Use Math To Trade Bitcoin And Altcoins

Happy Fibonacci Day!

Fibonacci Day: How To Use Math To Trade Bitcoin And Altcoins

Although Bitcoin is an asset unlike any other before it, it still tends to follow the same laws and dynamics that govern financial markets. The cryptocurrency goes through market cycles where sentiment shifts from bullish to bearish and back, and responds the same to support and resistance as forex, stocks, commodities, and more.

The entire Bitcoin code is built on mathematical code, and everything down to the number of BTC and the block reward halving mechanism relies heavily on math.

It is only fitting then, that Bitcoin and other crypto assets built on math, respond so well to mathematical levels of support and resistance.

These mathematical levels tend to reside at ratios based on the Fibonacci sequence, in which the sum of the previous two numbers makes up the current number and so forth indefinitely.

On November 23rd the world celebrates the famous Italian mathematician that first made sense out of the numbers found everywhere in nature.

Leonardo Bonacci of Pisa was the author of Liber Abaci, also known as The Book of Calculation. Using the sequence, he could with a degree of accuracy predict the future population of rabbits. The numbers have since been used to predict all sorts of outcomes, and its ratios – specifically the golden ratio or divine proportion is of specific importance.

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Master Asked on November 24, 2020 in Cryptocurrency.
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