Trading & Technical Analysis

What are Fibonacci retracement levels in crypto trading?

Fibonacci retracement levels are horizontal lines on a price chart that mark potential areas where a move might pause or reverse, drawn at ratios derived from the Fibonacci sequence, commonly 23.6, 38.2, 50, 61.8, and 78.6 percent. Traders anchor the tool between a recent high and low, and the levels in between flag possible support or resistance during a pullback. For example, after a rally a coin might retrace to the 61.8 percent level before continuing. These levels are descriptive reference points, not predictions, and price often moves through them, so they are best used with other evidence.

Crypto investments are subject to market risk and volatility. Past performance is not indicative of future returns. This is general information, not investment advice — consider your own circumstances or consult a qualified adviser before investing.