BITCOIN FIBONACCI RETRACEMENT

What is Bitcoin Fibonacci Retracement?

Fibonacci Retracement divides a move between two chosen prices into reference levels. It asks how far price has moved back through that selected span. The result depends first on the anchors: changing the start, the end, or their direction changes what the percentages describe.Maketo plots 0%, 23.6%, 38.2%, 50%, 61.8%, 78.6%, and 100%. For start price A, end price B, and fraction r, the level is B + r × (A − B). Zero is the end price, 100% is the start price, and 50% is halfway between them. After an upward span, the intermediate levels lie below its end; after a downward span, they lie above it.Several of these conventional ratios relate to the Fibonacci sequence and its limiting ratios. The 50% midpoint is included by convention, rather than derived from the golden-ratio relationships behind the other levels. The arithmetic identifies fractions of a chosen range. It does not establish that those fractions attract orders, predict a reversal, or provide a probability for the next price move.

Check the anchors before reading the percentages

A 38.2% level has no standalone Bitcoin price. It belongs to a particular start and end. Read the selected prices and direction with it. A level called 61.8% on a chart that measures forward from the start may coincide with a differently labelled level on a chart measuring back from the end.

Automatic anchors use previous extremes

Maketo’s default searches the preceding 100 candles, excluding the current candle, for the highest high and lowest low. Their order in the window determines the direction of the span. It does not use a later price reversal to confirm a turning point, and it does not claim to identify the most meaningful move on the chart.

Manual anchors describe the span you specify

The manual view uses the two supplied anchor prices and times. Levels begin once both anchors’ times have been reached. The calculation preserves which anchor is supplied as start and which as end; reversing them reverses the percentage interpretation. State the anchors when sharing a manually defined chart.

How Fibonacci Retracement is calculated

An upward move from A to B places a retracement at B − ratio × (B − A). Common ratios include 23.6%, 38.2%, 50%, 61.8% and 78.6%. The automatic view uses the prior 100 completed candles. The page is published on Previous 100 candles, period 100. A period counts candles at the interval you choose, so the same setting covers a different stretch of time on a one-hour chart than on a daily one. How smoothing and missing candles are handled.

A calculation you can follow

This illustrative example compares the same $20,000 span in two directions. It does not describe a dated Bitcoin move. For a rise from A = $80,000 to B = $100,000, the 0% level is $100,000 and the 100% level is $80,000.The 38.2% level is $100,000 + 0.382 × ($80,000 − $100,000) = $92,360. Price there has moved $7,640 back through the selected $20,000 rise.The 50% midpoint is $90,000 and the 61.8% level is $87,640. These are fractions of the chosen span, not percentage returns from Bitcoin’s current price.For a decline from A = $100,000 to B = $80,000, the 38.2% level is instead $87,640. Reversing the span changes which endpoint the percentage measures back from.A percentage without its anchors is incomplete. Cite the two prices, their order, and the selected method so another reader can reproduce the reference level.

Automatic lookback

The default needs 100 preceding candles before it can display the current set. Shortening the period changes which extremes are eligible. Older extremes disappear when they leave the rolling window, so levels can change without a new record high or low in the latest candle.

Tied extremes and candle detail

When the same high or low occurs more than once, Maketo selects its most recent occurrence in the window. If both extremes belong to the same candle, the formula uses its defined low-to-high ordering; the OHLC candle does not reveal which extreme actually occurred first inside it.

Interval and line scale

One hundred hourly candles and one hundred daily candles cover different spans and may select different extremes. The levels themselves remain dollar prices. A logarithmic visual scale, if used elsewhere, does not turn this linear price interpolation into a percentage-compounded calculation.

A chosen span can explain almost any nearby price after the fact

Selecting anchors only after seeing where price paused creates a reference fitted to that outcome. Keep the anchor choice explicit rather than treating a coincident level as independent evidence that the formula predicted the pause.

A single candle cannot reveal a full price path

The high and low show the extremes reached, but not their exact internal timing. Automatic selection uses the order of candles and an explicit tie convention. It should not be described as a reconstruction of every move between trades.

Fibonacci Retracement compared with Donchian Channels

Donchian Channels also use earlier highs and lows, but show their range directly. Fibonacci Retracement subdivides an ordered span between extremes. The extra lines add reference fractions; they do not add new underlying price observations. Open Bitcoin Donchian Channels.

Is 50% a Fibonacci number or ratio?

The midpoint is included by convention. It describes halfway through a selected move, rather than following the limiting golden-ratio relationships used for the other reference levels. Its presence on a Fibonacci chart does not give halfway any special predictive property.

Why does the automatic chart move its levels?

A new eligible extreme, an older extreme leaving the window, or a change in which occurrence is selected can replace an anchor. The reference then describes a different span. Manual anchors keep that choice explicit instead of following the rolling window.