Reason why we can start a new bull run or fail it again
Now here's something I want to bring to your attention and here's what I'm seeing on this chart is very interesting and I would say very powerful pattern which you might have noticed yourself, but I think it's important to actually expand on this. Let me just bring this to your attention. In this video, I want to show you why this pattern is so important, why it's so useful and how we can use it. So take a look at this. This is Bitcoin, and want to just expand this chart. I want to show you a bitcoin really from. So here's, as you can see here, this is the part to show you here on this chart. I'm using the chart, the trading view here. So this is the peak. We formed the Top back in December of 2017. The drop that occurred, that's the bottom. That's forums back in January or February to February of 2018.
The other important low that we formed here back in June of 2018 and so far as you can see here, the market has been going in a sort of sideways but downtrend manner. Now, let me zoom back a bit here and bring this, bring this to your attention. So there's a very interesting pattern that's been developing here and what I want to do is show you how it works with this indicator is an indicator you going to find that should be on any charting platform, and it's here on trading view is called favourite retracements. Now I'm going to go on select this fib retracement, which you want to do. Then is click on left, click on your mouse or your cursor left, like at the top of the move, and then drag it down to the bottom of the move. Okay, so in other words, I'm just dragging it from the left to the right to the bottom.
The smart way you should try to start Bitcoin trading with small amount of money
Okay. Now, by the way, the settings of this indicator, let me show you the settings are thus. So what I tend to use is the 38 point two percent and the 61 point eight percent. These are the two, the two most important levels of the FIBONACCI tool. Now, of course he can use the other levels too if you want, but these are the ones that matter to me the most and actually mattered to chartists the most as well. 30 eight point two, 61 point eight, and in case you don't know what these levels are, again, we don't have time for that in this video, but just remember that these levels, these important numbers, 38 point two, 61, point eight are important levels in nature. Okay, so they have a significance not just on the charts but also in nature, even in mathematics, to have an importance.
Significance are guys. So that's the way I do it. And then take a look at this. We drew this from the top to the bottom and notice what happened next. Bitcoin, retraced, bitcoin stage a rally, but look what it did. It came back to the 61 point eight percent Fibonacci level and it's stole at that level. Okay? Now this is a very common and a market movements and in technical analysis, because often markets retrace about 61 point eight percent. Sometimes I would say actually 38 point two to 61 point eight percent, they retrace back, but 61 point eight percent. This level here is a key level. That red level, the much chart. So again, notice by doing this retracement tool, we found that the 61 point eight percent retracement is right here, and bitcoin rallied them to that level. It failed to get much traction above that level and then it collapsed.
Okay, now I'll explain how we can use this to our advantage and just a few moments, but let me just give you another example. So if I just get rid of this, okay, let me try another one. So notice after bitcoin drops again from here, so bitcoin drops from, again, we're talking about from the May high down all the way to the June low. So we're going to do this again. We're going to do the exact same thing. FIBONACCI retracement from the high to the low right there. Now notice again, something very interesting happens here and I want to bring this right here. Focus on this for you. So notice that bitcoin stages and other rally, that's the rally we saw back in July. And notice what happens again, it comes up to the 61 point eight percent again, the same level, 61 point eight percent, and run about this level again, it fails to get above that fails to get much traction above the level of bitcoin fails, a sustain itself above the 61 point eight percent Fibonacci level.
And again, look what happens. Bitcoin then reverses direction and then falls apart. I have to say that at the time when I saw bitcoin coming up to the 61 point eight percent level, I was of the opinion that he could actually break through that level. It did not do that, and the fact that it failed. This is an important point. The fact that bitcoin failed to get above that 61 point eight percent level is an early powerful signal that there is weakness, internal weakness, and that is usually the levels when sellers can take control and push the market in the opposite direction as it happened with bitcoin right there. Okay? So bottom line is this guys, but when you see bitcoin coming up to the 61 point eight percent level and it fails to get much traction above that level, that is a good level.
Perhaps one could take profits and indeed one could consider even maybe looking to the opposite direction. By the way, the same thing happened again. Look at this. Notice the drop that occurred from here. Let me just do this one more time. So I'm going to draw the FIBONACCI retracements will again from the high to the bottom here. Okay. And notice what happened yet again. So bitcoin yet again puts in a rally, but notice yet again it fails to get above the 61 point eight percent retracement level. Okay. Very close to that level. It just couldn't get anything going above that level. That was at the 7,500 level by the way. And if the market, if that price cannot get through, cannot sustain itself above the 61 point eight percent retracement level, which has this level you see here, that is an early indication of internal weakness that something isn't quite right, that it's rally could actually fail.
And indeed this rally did fail as you can see right there. So you guys, the bottom line is this, that we've seen this happening now on so many occasions with bitcoins. So many occasions now. Bitcoin has been making the 61 point eight percent fib retracement level. Let me just show you just one more time. There it is. So that was that 61 point eight that failed. Okay. Yes. Again, here was this failed and it's again this year failed. Okay. These are all 61 point eight percent FIBONACCI retracement levels that failed, that showed in other words that showed that price just couldn't get through that level. By the way, this doesn't just happen in the downward direction. Happens also in this direction too. Let me show you in the upward direction. So notice this was the rally that occurred in Bitcoin last year. In 2017, so if I just draw from this low to this high, look at this.
Bitcoin dropped in December of last year. Bitcoin drop right down to the 61 point eight percent level and it bounced off that level. I, by the way, let me show you this. This is from July to September of last year. Look at this. Now, this drop that occurred here was also 61 point eight percent FIBONACCI retracement level. Let me show you. So again, we're going to draw for your retracement tool from here to here and there it is. Notice that bitcoin gets again when it dropped, it dropped it a 61 point eight percent fib level and then it here it was here that it's staged a rally higher. Okay? So knowing where these levels are and keeping an eye on them can be immensely powerful, immensely useful to your analysis. Now, how does that affect our picture of the bitcoin market right now? We'll take a look at this. This is the. This is the drop that occurred in the last month or so and the last 30 days.
So this was the top, this is the bottom, here are the drop, and notice what bitcoin is doing right now is doing this retracement. So let's do our FIBONACCI retracement tool again from this height to this low and notice where the 61 point eight percent fib level is right now as you will see, it's right here near the 7,000 level. Okay? So near 69, 22, 7,000 is where the six 61 point eight five, not two levels. Which means what? Which means if bitcoin comes up to this level, this is about an over 50 percent probability that bitcoin Mike, yet still at that level. But here's an interesting point. If bitcoin can successfully get itself above that level and sustain itself above that level, that is where we might see some signs of strength. Okay? So that's why we look at these importance for the Nazi levels.
If bitcoin can get above the 61 point eight percent level and sustain itself above that level might be a good sign for bitcoin.
But if bitcoin gets into this level, it bit coin comes up to this level. And yet again, yet again, we see failure, we see failure, these levels of reversals, weakness. Then guess what guys? That once again is another indication of a 61 point eight percent retracement holding effect and pushing bitcoin back into support. Okay, so an interesting pattern. Keep your eye on it. And guys, if you liked this video, please give it a thumbs up. And also please subscribe for future updates. Thanks very much indeed.