A Fibonacci graph is applied over the last 4 years. The 1.00 level is at a strong resistance of $320 in Nov 2015. Once the price broke $320 it began the bull run that brought us to $19,600. The Fibonacci 0.5 level is established at the 2017 peak of $19,600. Naturally, the 0.618 level is right around the recent impulse to $13,800. However, I'm more interested in the line the Fibonacci graph drew from 1.00 to 0.00.
In the top graph, you can clearly see this dotted line sketching a support/resistance level throughout the bull run, bear market, and recent expansion. This lines travels all the way to the 0.00 Fibonacci level @ $38,400 in June 2020.
This Fibonacci graph began at a resistance level, established multiple support/resistance levels on the corner-to-corner line, and show the price bouncing off of the 0.5 and 0.618 levels. It appears this is a relatively reliable graph, as it predicted these support/resistance areas.
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