In a strange situation, when all financial markets are collapsing due to concerns about the spread of corona virus, Bitcoin, Dow Jones, S&P 500 and gold, all have dropped to the exact same mathematical level. .
But why do these unrelated assets suddenly show such popularity and what causes them to suddenly pop up?
Bitcoin, gold, Dow Jones and S&P 500 all reach this mathematical level
Mathematics is the science behind and the study of space, structure, quantity and change. It is one of the strongest laws that govern everything around us.
Math can be so powerful that, despite the unpredictable impact of the corona virus – a potential black swan event – it is possible to predict the recent stock market crash and the sell-off in gold and Cryptocurrencies will find support.
According to an article published by Bloomberg, an 800-year-old mathematical principle discovered by Leonardo in Pisa in the 13th century, perfectly predicts where the recent retreat in the S&P 500 will end.
Curiously, the same level has been respected and is also kept on the price chart of Bitcoin, gold and other stock market indices like the Dow Jones.
Each of these pullbacks is perfect to 50% or 0.5 Fibonacci levels.
A 50% retracement is most beneficial
Fib levels and their ratios are found everywhere in nature and often act as important levels for psychological support on financial asset price charts such as Bitcoin, Gold, Dow or S&P 500. .
This same theory has been used by traders and analysts for many generations with much success. The legendary Trader WD Gann, in the early 1900s, discovered that the most profitable regressions to trade were 50% and this became the basis of his analysis and teaching.
Follow theory of Gann, 50% is psychologically a risk zone for assets because that is where a complete reversal is possible. But it also acts as the best place possible to re-enter existing trends.
If the trend continues, Gann explains that the asset is likely to break previous highs and his lectures on this topic are likely to be the first examples of famous dip buying.
Although the markets have been in a downward spiral due to fear of corona viruses, investors are buying dip at this critical level, and that may be their mathematically most profitable trade.
You can see the price of Bitcoin here.
Disclaimer: This is not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
According to Newsbtc
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