Cryptocurrency Resistance and ABC Formation
- The Fibonacci (Fibo) level serves as a critical resistance point for cryptocurrency prices.
- An ABC formation, a key pattern in technical analysis, is expected to form before a price rejection occurs.
- A price rejection at any Fibo level could potentially push the price to a lower level, such as 1980.
Role of Fibonacci Levels in Crypto Trading
- Fibonacci levels are derived from a number sequence identified by mathematician Leonardo Fibonacci in the 13th century.
- These levels are often used by traders and analysts to identify potential resistance and support levels for cryptocurrency prices.
The ABC Pattern in Technical Analysis
- The ABC pattern is a basic but highly reliable pattern used in technical analysis of financial markets, including cryptocurrencies.
- An ABC pattern forming before a price rejection can serve as a strong indicator of a significant price drop.
In conclusion, the usage of Fibonacci levels and recognition of an ABC formation could pave the way to a more strategic approach in cryptocurrency trading. With these tools, traders might forecast a potential price drop after a rejection at any Fibo level, possibly even to a value as low as 1980. However, the uncertainty and volatility associated with cryptocurrencies mean that any prediction should be treated cautiously.
Disclaimer. The opinions expressed by our writers are their own and do not represent the views of JustInvestNews. The financial and market information provided on JustInvestNews is intended for informational purposes only. JustInvestNews is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
Original article: https://www.tradingview.com/chart/XAUUSD/JBatvTBB-New-Flat-Correction-counts-on-4-hour-time-frame/
