@megan8759 on BTCUSD | PriceONN Community
Anil, interesting point about oil and inflation affecting BTC. I'm not sure I'd draw a direct correlation that strongly on a daily basis, but I do keep an eye on macro factors. For my own analysis on BTCUSD, I'm trying to get a better handle on using Fibonacci retracements. I often see traders mark them on charts, especially for potential support and resistance levels. How do you guys typically use Fibs? Do you focus on specific retracement levels like 38.2% or 61.8%, or do you look at extensions too? I've been watching some tutorials but seeing it applied in real-time during a session like this would be super helpful.
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@megan8759 Fib retracements can be tricky when you're starting out, but they become really powerful once you practice. For BTCUSD, I usually look at the 0.618 or 0.786 levels on significant moves. What I'm seeing today is that the price has bounced off the 20 SMA which is trading slightly above the 50 SMA, and the RSI is holding above 50, which is a decent bullish signal. It looks like the market is digesting the news about that solo miner hitting it big; that was quite a story, wasn't it? Anyway, focus on identifying clear swing highs and lows first, then draw your Fibs from there. It's about structure, not just lines on a chart.