In this episode of NewsBTC’s daily technical analysis videos, we examine major Bitcoin price troughs with Hurst Cycle Theory and cyclical tools to consider if the bottom could be in and if another bubble is coming.
Check out the video:
VIDEO: Bitcoin Price Analysis – BTCUSD: November 7, 2022
An analysis of Bitcoin Cyclical Behavior
The visual analysis of each Bitcoin halving is made easier by including it. This has been widely discussed in terms of the halving as an important driver of demand and internal supply. Bitcoin is seen to reach its lowest point visually after each halving. Visual aid has been provided by the log growth curve.
Turn on a Spectrumrogram to continue. A spectrogram displays the spectrum of frequency of a signal and how it changes with time. A bullish intensity will be stronger if there is more green heat. In contrast, the more purple heat on the map, the stronger the bearish intensity is and that’s where we would look for a cyclical bottom. Our cyclical low for dominating cycle phasing would be found within the respective purple zones.
Do you think there is a new Bitcoin Cycle?Source: BTCUSD at TradingView.com | Source: BTCUSD on TradingView.com
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This Bear Market Feels So Extreme
Next, we need to establish the dominant cycle and eliminate any harmonics. Hurst Cycle Theory states that harmonics are found in both twos and threes. The idea is that there should be at least one or two dips in the middle of each cycle, regardless of whether it’s a major trough or trough.
Determining the mid-cycle harmonics not only confirms dominant cycle phasing but also proves Hurst cycle theory accurate. Notice that cyclical troughs tend to bottom in tandem, while the principle of summation explains why the recent selloff felt so long and extreme – it was the sum of a larger composite wave and a smaller harmonic wave combined.
BTC Gearing Up for Another Bubble Cycle
Completing the phasing is the final step. The Fisher Transform, which pinpoints market turning points, and the Stochastic RSSI, is also used to confirm this. The Fisher Transform draws attention to the possible turning point. Meanwhile, the Stoch RSI rises from oversold levels is a confirmation of the bull run.
