Fibonacci retracement is one of the technical analysis tools used to identify certain levels of support and resistance of the cryptocurrency market. It's based on the Fibonacci sequence the Term of which equals to the sum of the previous two ones (0, 1, 1, 2, 3, 5, 8, 13, 21, and so on).
In Fibonacci retracement traders identify key price levels by drawing horizontal lines at the following ratios of the Fibonacci sequence
23.6 %, 38.2 %, 50 % 61.8 %, and 100 %.
These levels are supposed to mark zones where price may reverse before moving forward with a trend.

Here's how it's applied it in crypto markets.

1. Identify a significant price move:
   Traders first identify a significant price move, such as a rally or a decline.

1. Draw Fibonacci retracement levels: Using a charting platform, traders draw Fibonacci retracement levels from the start to the end of the price move. These levels act as potential support and resistance levels.

1. Analyze price action around Fibonacci levels: Traders observe how the price reacts to the Fibonacci retracement levels. If the price bounces off a particular level, it may indicate that level is acting as support or resistance.

BTCUSDT

• Currently BTCUSDT is in uptrend we can look for buy from 50% and 78.60% level As mentioned on chat But after some reaction we will look for buy.

ETHUSDT

ETHUSDT market is also Bullish and same acting like btcusdt So We can also look for buy from main 2 Point 50% and 78.60%

STEEMUSDT

Currently Market is bullish also on steemusdt So You can see on chart market is giving reaction on 50% level and now still our Strong level is 78.60 %

I will Explain all the level Like ( 23.6%)
(38.2%) and so on .

1. 0.236 (23.6%): This level isn't a true Fibonacci level( ratio) According to me but is still widely used in market.It suggests a shallow retraement and showing indication that the trend may be continue in the original direction in which they are going.

1. 0.382 (38.2%): This level signifies a moderate retracement. we need some reaction before any action to understand this as a support or resistance level.

1. 0.500 (50%): this is the 50% means half of trend Level 50% level So about 40% We cam see market is Respecting this level but we need to confirm this level from market reaction.

1. 0.618 (61.8%): This level is considered one of the most important Fibonacci retracement levels. if price breach or break this level Then Its a sign of trend reversal.

1. 0.786 (78.6%): While not as commonly used as the others but if talk about me its useful . It indicates a deeper retracement .

Combining Fibonacci retracement with any other technical tools or indicators like moving averages and the relative strength index which i lao known as Rsi . it can enhance the quality of market analysis by providing multiple layers of confirmation and insight into price movements.

Here's I'm going to share about Moving Average or RSI how it's work with Fibonacci Retracement level.

1. Moving Averages (MAs):

• Moving averages can help to smoothly undertstand price data to identify trends more clearly as compare only with fib level.

• When used in combination with Fib level moving averages may provide additional confirmation of potential support or any resistance areas depends on market trend.

• Traders often look for confluence between Fibonacci levels and key moving averages such as the 50-day or 200-day moving averages, to validate potential reversal or continuation zones.

• For instance, if a Fibonacci retracement level aligns closely with a major moving average, it strengthens the significance of that level as a potential support or resistance zone.

1. Relative Strength Index (RSI):

• RSI is a momentum ocilatr which we can use for measures the speed and the change of price movement also and also Volume In market we can see through Rsi.

• When we will combined an rsi With fib level RSI can help us to identify potential areas of overbought and also in oversold conditions I will also Show on chart.

• Lets take an example if the price is retracing an fib level like 78.60% and on the other hand RSI is showing overbought condition on chart then we can Consider a potential reversal so we can look for a buy

STEEM/USDT

• In this chart You can See Two Level One is 50% and second is 78.60% Level for buy .

• On 50% level if we see previous history market tapped and React a small buy then fail level now We will look for further down side next level which is 78.60%

• On 78.60% level we will look for Buy But after reaction it will be confirmed when market will stay or react from this level then we will consider this is strong support level and According to support level we can buy .