Fibonacci Retracement

Fibonacci retracement is a technical analysis tool that uses horizontal lines to indicate potential support and resistance levels where price reversals may occur. The levels are derived from the Fibonacci sequence and are typically drawn at 23.6%, 38.2%, 50%, 61.8%, and 78.6% between a significant high and low point. Crypto traders use Fibonacci retracements to identify potential entry and exit points during pullbacks within a larger trend.