How to Use Fibonacci Retracement Tools to Trade Bitcoin

Fibonacci retracement levels are a popular tool used by traders to identify turning points in cryptocurrency prices. Without this tool, traders might enter into Bitcoin trades without confidence, which can lead to unnecessary losses.

While the Fibonacci retracement tool is commonly used in the traditional stock or forex market, you’ll be surprised to know that it works wonderfully for cryptocurrency markets too. 

In this guide, we’ll decipher the technicalities of this tool. In the end, you’ll learn how you can use it to find critical levels on a trading chart.

What Are Fibonacci Retracement Levels?

Fibonacci retracements are hidden levels of the horizontal lines of support and resistance where Bitcoin prices may potentially reverse. The main levels are 23.6%, 38.2%, 61.8% and 78.6%.