If you’ve done a bit of digging around on Bitcoin analysis websites and engaged in a fair amount of Bitcoin investment research, you might be overwhelmed by the number of different techniques traders use to trade the word’s flagship cryptocurrency.
Sometimes, it may seem like Bitcoin is too volatile and unpredictable to use traditional trading techniques with. However, Bitcoin goes through cycles just like every other asset. If you know how to use the right tools, substantial profits can be made.
Dr. Charles Nenner has made a name for himself utilizing the power of cycles, and he has even been dubbed “The Cycle Guru” by mainstream media outlets. The Charles Nenner Research Center can help you reach your full potential as an investor or trader.
What is Fibonacci?
Fibonacci was an Italian mathemetician who first discovered the same mathematical patterns in all organic matter, whether it was leaves, flowers, faces, or shells. As more tools became available to science, we learned that the Fibonacci sequence applies to more than the 13th-century mathemetician could have known. The sequence is relatively simple: 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233, 377, 610, 987, 1597, 2584, (repeated till infinite). Each number is the sum of the previous two numbers and is roughly 1.618 times bigger than the first number behind it. This is where we get “Phi” or “the golden ratio.”
If we consider that price movement is really just a numerical representation of human thought and emotion, then we can consider that it too is organic matter. Therefore, price movement is subject to the Fibonacci sequence.
Fibonacci is most commonly used to see where a price impulse will go to, and where it can retrace, before continuing its impulse. Many of the top Bitcoin market research companies use Fibonacci in their trading.
The key Fibonacci levels are 23.6%, 38.2%, 61.8%, and 78.6%, and Dr. Nenner has used these in conjunction with other indicators to pick exit and entry points on the chart for Bitcoin.
Fibonacci and cycles
Fibonacci pertains to price action, which is very useful. However, using the standard Fibonacci retracement and extension tools on your chart doesn’t take into account one key factor: Time. Maybe you have picked the perfect entry point, but not at the right time. This means you may have to wait weeks, months, or years to make any profit on your position. If you’re trading with an online broker or using leverage, the fees you collect on swaps and keeping your trade open can eat into your profits, and be a waste of your capital and time. Wouldn’t it be nice to not only pick your entry and exit points, but to also know when to do it?
Dr. Charles Nenner’s proprietary models on time-based cycles are the vanguard of Bitcoin investment research and have been helping investors grow their portfolios since 2001. Check him out if you’re serious about generating profits with Bitcoin.