Fibonacci: The Secret Tool of Crypto Traders

Have you seen that other traders talk about “Fib levels” and wonder what they're about? Basically, it's mathematical magic that works on Bitcoin, Ethereum, and any crypto.

The Trick Behind the Magic Number

The Fibonacci numbers (0, 1, 1, 2, 3, 5, 8, 13…) appear in nature: from snails to galaxies. Traders discovered that these also define where the price is likely to bounce.

Key levels are:

• 23.6% - first slight bounce
• 38.2% - moderate rebound
• 61.8% - the “magic zone” (most traders expect here)
• 78.6% - deep rebound

How to Use It in Real Trading

Bullish trend: Draw a line from the minimum (100%) to the maximum (0%). If the price falls, look for support at those Fib levels.

Bearish trend: Reverse the logic. The maximum is 100%, the minimum is 0%. If it rises, those levels act as resistance.

Practical Strategy

1. Identify a strong movement (up or down)
2. Apply Fibonacci between the start and the end
3. Wait for the price to touch a level
4. Combine with other indicators (RSI, MACD, volume) to confirm
5. Enter with a clear stop loss

The Secret of Why It Works

It's not because Fibonacci is “magical”. It's because thousands of traders use this, so everyone expects the same levels. That collective expectation BECOMES market reality.

⚠️ Note: Fibonacci is a tool, not a magic wand. Use it with risk management. A Fib level can bounce… or break. Always have a plan B.