Technical investment analysts have always used something called “the Fibonacci numbers” to determine when to buy an asset.
And when I say always, I mean it. Born all the way back in 1170, Leonard Fibonacci’s numbers are a sequencing system that is formed by a simple equation.
These numbers may seem random, but their application has been far-reaching and incredibly effective in analyzing everything from why certain flowers have a specific number of petals to what price you should buy an asset.
You don’t have to remember what you were taught in high school calculus to understand Fibonacci. Just know that the laws of mathematics cannot be broken, which is why market prices naturally flow into these patterns.
In other words, it’s a great indicator for stocks – but the real asset we want to look at today is the one hitting headlines everywhere you look: Bitcoin (BTC).
[BTC isn’t the only crypto with moneymaking potential. Click here to discover three coins that could make you 20X more money than BTC…within a couple of months.]
BTC, just like almost everything else in the world, has its own Fibonacci pattern, and you can use its trend to determine when to buy the dip.
In 2020, BTC dropped down to lows around $5,000 and then rallied to its recent highs just above $57,500. That’s a return of more than 1,000%.
The recent spike is reminding traders of the 2017 and 2019 peaks. Each of these quickly led to a voracious selloff that resulted in losses of greater than 75% in both cases as the “bubble” burst.
Which is why I wasn’t surprised when, after Janet Yellen and Elon Musk suggested BTC was overvalued, we saw an aggressive selling spree that caused the coin to lose 25% of its value in just two days. Mr. Musk reportedly lost $30 billion and is no longer the richest man on Earth.
This has led many to question if another huge drop is on its way. But listen – Bitcoin is entering the acceptance phase. Companies like Visa, a growing portion of the world population, and the biggest banks are all going in on crypto.
And the acceptance phase is one of the strongest bull market rally drivers for any asset. So no, this coin’s bullish rally isn’t over. It’s not time to get out.
Instead, it’s time to buy the dip.
Bitcoin’s predictable Fibonacci trend is signaling big profits, and we can use it to determine the exact price to get in…