Key Cryptocurrency Fibonacci Levels
Today’s article will highlight key Fibonacci extension and Fibonacci retracement levels. These Fibonacci levels can help identify future profit, support, and resistance levels.
On all of the charts in this article, the Fibonacci levels in black are the extension levels, and the blue levels represent the retracements. Additionally, unless otherwise specified, the Fibonacci levels are based on logarithmic calculations. For Zcash, We can project a series of shared resistance and profit levels in the near future. First is the 61.8% extension at 84.50 – but we may not see that level act as a very strong resistance level. We are more likely to see resistance found at the 88.6 extension at 110.09. The 88.6% extension is the highest volume node above the weekly cloud (not shown) and represents the most important harmonic level before testing the June 2019 high of 140.48. On the support side of Zcash’s chart, we can see a noticeable difference in how we view the Kijun-Sen on a logarithmic chart. The Kijun-Sen is often referred to as a dynamic 50% Fibonacci retracement on a linear chart. On the logarithmic chart, The Kijun-Sen has a shared value with the 23.6% Fibonacci retracement at 57.95. I would expect the 23.6% level to be the first major support level that Zcash would test on any pullback.
Cardano, my favorite cryptocurrency and my single largest holding, recently received a ‘buy’ signal from the world’s greatest investors: Peter Brandt. If that isn’t a resounding buy signal by itself, I don’t know what is. The Fibonacci extension I’ve drawn on Cardano’s chart starts with the all-time low in December 2018, then to the June 2019 swing high and then to the most recent December 2019 swing low. The highest volume node that Cardano will now reach is in between the 61.8% and 78.6% Fibonacci retracements in the 0.08 to 0.09 value areas. However, the 161.8% extensions are the most frequent major resistance zones and for Cardano, that level is a staggering 437% above the current price: 0.3252. Cardano’s closest support levels are at the Fibonacci retracements levels of 23.6% (0.0536), 38.2% (0.0486), and the 50% level (0.446). None of the Fibonacci levels coincide with an immediate level in the Ichimoku Kinko Hyo system, but they do coincide with some of the market profile levels. If there is a pullback in Cardano’s price, I would expect it to skip the 23.6% and the 38.2% levels. There is very little traded at the 38.2%, but there is a high volume node at the 50%.
Litecoin (LTC) has been on a tear ever since its 2019 lows in December. The Fibonacci extension from that swing low shows the 161.8% level at 111.68. I would expect Litecoin to face resistance closer to the 123.6% Fibonacci extension level due to the high volume node that is present. The support zone on any pullback should be found near the current volume point of control at 57.96. There is a collection of Fibonacci extension and retracement levels near 57.96. The Fibonacci extensions of 38.2% and 23.6% are near the volume point of control, along with the 38.2% and 50% Fibonacci retracements.