Golden Ratio Model
The Golden Ratio Multiplier explores Bitcoin's generation line and market cycles to understand how bitcoin may behave on medium to long-term time frames.
350 days moving average (350DMA) of Bitcoin's price to identify areas of potential resistance to price movements. Note: multiples are of the 350DMA's price values rather than its number of days.
The multiples reference the Golden Ratio (1.6) and the Fibonacci sequence (0, 1, 1, 2, 3, 5, 8, 13, 21). These are important mathematical numbers.
This golden ratio can be implemented on any asset, please connect for more details.
These specific multiplications of the 350DMA have been very effective overtime at picking out intracycle highs for Bitcoin price and also the major market cycle highs.
As Bitcoin becomes adopted over time, its market cycle highs hit decreasing Fibonacci sequence multiples of the 350DMA. This is because the explosive growth of Bitcoin on a logarithmic scale is slowing over time. As its market cap increases it becomes more difficult for the same log scale growth rates to continue.
If this decreasing Fibonacci sequence pattern continues to play out as it has done over the course of the past 9 years, then the next market cycle high will be when the price is in the area of the 350DMA x3.
The Golden Ratio Multiplier is an effective tool because it is able to demonstrate when the market is likely overstretched within the context of Bitcoin's adoption curve growth and market cycles. For more information on the indicator see the link below.