This chart is loosely based on Carolyn Boroden's work with 'Fib Clusters'. I have plotted the 0.5, 0.618, 0.786, 1.272, 1.618 and 2.618 fib lines from every swing low to each of the next 3 swing highs (since the start of the bull). I've also got a $20k - $6k in there aswell. I find it interesting to see how at the $11.7k double top, price was rejected by a tight cluster of 5 and the $6k bottom is also comprised of a triple cluster. It's worth noting how price seems to move relatively freely between clusters.
In the chart I have highlighted the areas where there are more than 3 fib levels occurring within a very tight range. These are the support levels I'm looking to if the $6k bottom is to bow down to selling pressure. Im eyeing the clusters with at least 1 pink line (0.618) as being the most powerful support.
In the chart I have highlighted the areas where there are more than 3 fib levels occurring within a very tight range. These are the support levels I'm looking to if the $6k bottom is to bow down to selling pressure. Im eyeing the clusters with at least 1 pink line (0.618) as being the most powerful support.