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Fair Value in Bitcoin: The Smart Way to Know Whether It’s the Right Time to Buy
How to enter Bitcoin with zero reversals using a strategy and a simple understanding of the most important basics of trading markets
2026-05-11
Very simply and easily,
Let me ask you a question..
When you want to buy something.. you first check whether it’s expensive or cheap.. if it’s expensive you won’t buy it.. if it’s cheap you’ll definitely buy it ✔️
Focus on this picture
How Do You Determine Whether Bitcoin Is Cheap or Expensive
This applies to any currency or financial asset in the financial markets.
The process is very simple and easy.
You bring the Fibonacci tool and draw it between the top and the bottom, and the 50% level will appear.
This 50% level is the fair value..
Meaning a price that is not expensive.. and at the same time considered a good buying price..
This 50% level is the fair value..
Meaning a price that is not expensive.. and at the same time considered a good buying price..
Fibonacci 50% level
Meaning if the price reaches this level, you would say that Bitcoin is now at a good buying price.. let’s buy Bitcoin..
And if the price drops below the 50% level, that means the price is even cheaper.. so here you can buy and increase your position.
And if the price drops below the 50% level, that means the price is even cheaper.. so here you can buy and increase your position.
Now here, to use the Fibonacci tool.. where do we draw from and to?.
we draw from the top to the bottom..
At that time:
Our top was 73,777
And our bottom was 24,394
So we draw the Fibonacci from the top to the bottom or from the bottom to the top,
And the fair value will appear in front of us.
So when the price reaches this point, Bitcoin will be considered suitable for buying.
At that time:
Our top was 73,777
And our bottom was 24,394
So we draw the Fibonacci from the top to the bottom or from the bottom to the top,
And the fair value will appear in front of us.
So when the price reaches this point, Bitcoin will be considered suitable for buying.
Is This Enough for Buying?
Let’s say no...
Add Two More Helpful Things Alongside Fair Value
We will draw a demand zone as clearly shown in the image..
The demand zone is the drop area that happened before the price explosion...
So when we drew the demand zone like in the image, we found that the demand zone is in the same place as the fair value 🤭
Niiiiice... this means the demand zone is strong.. and it actually means there are buy orders that will be executed at this fair value.
So when we drew the demand zone like in the image, we found that the demand zone is in the same place as the fair value 🤭
Niiiiice... this means the demand zone is strong.. and it actually means there are buy orders that will be executed at this fair value.
Okay, let's add something else...
2️⃣- Look at the volume. you’ll find a high-volume bar ⚡️
Summary of the Setup Formation
- 1️⃣- The price reaching the fair value level
- 2️⃣- The presence of a demand zone in the same fair value area
- 3️⃣- High volume when the price touches the demand zone and fair value
Bebo | Financial Markets Analyst
A financial markets analyst and trader with over 7 years of experience, offering a specialized educational approach through a comprehensive 3-level course designed to master SMC concepts. He has also developed his own methodology based on new practical concepts that improve entry points and build a more professional and profitable trading approach. Over 3 years, he has trained more than 600 students through free and paid educational content.