Definition ∞ Fibonacci support is a technical analysis concept where price levels derived from Fibonacci ratios are expected to act as areas where a downtrend might pause or reverse. Traders apply these levels to cryptocurrency charts to identify potential buying opportunities. These levels are mathematical projections based on prior price movements. They offer potential points of market reaction.
Context ∞ Digital asset traders frequently employ technical indicators like Fibonacci levels to predict price movements within volatile cryptocurrency markets. The market’s reaction to these levels can influence short-term trading decisions. However, their predictive accuracy remains a subject of ongoing discussion among market participants.
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