6. Bitcoin Rise and Adjustments

 

Whether it is a stock, futures, or Bitcoin, it is rare that it only continues to rise in a bull market. Even in a bull market, it is a pattern that after a big rise, it goes through an adjustment, then retraces and rises again.

 

 

 

 

 

 

Adjustment refers to the period during which the period rises and falls in this way is called an adjustment, and the theoretical explanation for this is 'Fibonacci retracement'.

 

 

 

 

 

 

In the Fibonacci retracement, the adjustment ratio is 38.2% / 50% / 61.8%.

 

This means that an adjustment will come at this rate. If the adjustment ratio exceeds 61.8%, it is interpreted as a decline rather than an adjustment. That's because an adjustment is a term that presupposes further upside.

 

In this case, the correction ratio also predicts the strength of the uptrend in the future. The smaller the correction ratio after the rise, the higher it predicts further upside. The biggest rise can be predicted, and since the end of last year, there was a time when the Bitcoin trend uptrend replaced the retracement with a sideways trend.