Ivan on Tech explains how the Fibonacci tool can predict bear market bottoms
Ivan on Tech demonstrates the Fibonacci retracement tool applied to crypto market cycles.
Summary
In this short, Ivan on Tech demonstrates how the Fibonacci retracement tool can be used to estimate where a bear market will bottom out, based on the size of the preceding bull market. Using the previous cycle as a reference point, he shows that the market bottomed at the 0.7 Fibonacci level, then applies the same logic to the current cycle to project a potential bottom. His analysis places the current cycle's projected bottom at approximately $38,000–$42,000.
Key Takeaways
FULL TRANSCRIPT
Fibonacci Retracement Applied to Bear Market Cycles
Moving Averages: The Fibonacci tool is a way to basically measure the bull market, and then based on the size of the bull market, we can measure where the bear market will bottom.
Let's use the last bull market as an example. You can see that we bottomed out at the 0.7 Fibonacci level. If we use a similar logic and apply this tool to the current situation — measuring from the bottom to the top — you can see that the 0.7 level sits at approximately $38,000 to $42,000.