As was the case in each of the previous
two years, Bitcoin has turned out to be
one of the best performing assets,
currently up over 80% since the start of
2025 with 70% of the year behind us.
Now, we often cite the fundamental case
for owning Bitcoin as a hedge against
weak currency policies, coupled with a
growing narrative of broad adoption both
on the institutional and retail levels.
But many traders favor trading Bitcoin
on strictly technical analysis, at least
until the time where the fundamental use
cases mature. When an asset is
constantly making new all-time highs,
though, it becomes a little more
difficult to identify key technical
levels, particularly as it relates to
upside inflection points. One technical
metrics that stood out is the Fibonacci
1.618 extension or the golden ratio as a
level of importance. Currently, this
level comes in just above 122,000. So
far, since early July, the level has
been eclipsed four times, and in each
instance, was quickly rejected. Often,
strict fundamental analysts will dismiss
technical analysis as squiggly lines on
a chart, while the proponents believe
it's a more comprehensive measurement of
sentiment and momentum based on decades
of research and some math. So far, the
bulls have failed at this level, not
just recently, but several times in the
past as well. All the traders understand
the massive effects of headline risk and
perhaps a major headline needs to break
for the coin to move conclusively above
this important level.