Bitcoin price is declining and still fresh off local highs in the past 48 hours, while crypto market sentiment is instantly convinced of another major correction. But according to a time-based theory of technical analysis, the crypto market may not need to correct for a while. Here are the details…
Is it time for Bitcoin bulls?
A few days after a simple 10 percent pullback, the cryptocurrency market on Twitter is announcing that the bear market is back and new lows are guaranteed. But according to the Hurst Loop Theory, time works in favor of Bitcoin bulls, according to analyst Tony “The Bull”. American engineer JM Hurst created this theory in the 1970s, and it consists of eight basic principles. These principles include Association, Circularity, Addition, Harmony, Simultaneity, Proportionality, Nominality, and Variation.
At its core, the theory seeks a repeating rhythm of measured time distance from pit to pit. In the chart below, we can see that 50 percent or more corrections in the past follow a cyclical pattern. Repeating time cycles suggest that the next major trough won’t be until January 2024 at the earliest. Each of the major potholes dates back to the last major fix in 2017. The next big trough was the bottom of the 2018 bear market, followed by the COVID crash in 2020. Summer 2021 gave us another bottom, and another one came this past November 2022. So was this a long-term bottom?
Long-term BTC bottoms converge
Not only do the shorter-term cycles indicate that there won’t be a big bearish move in the near-term, the larger time cycles say something similar. According to the Principle of Harmony, larger time cycles can be divided in half and three. The smaller time cycle, measured as 1/3 harmonic, pushes Bitcoin price back to the last few major bear market lows. Another of these large circular pits with significant aggregation is not expected to occur until mid-2026.
Hurst Loop Theory requires a bit of subjectivity, so it’s not possible to tell if the above is completely true or if the current looping structure is starting to change or contains more Variations. But according to the analyst, if the drawings are correct, it won’t be time for a major correction for a few months. cryptocoin.com At the time of writing, Bitcoin’s value is changing hands at $27,424, down 0.8 percent in the last 24 hours, according to data. The cryptocurrency suffered a decline after hitting above $30,000 last week. Therefore, the seven-day price change is 9.5 percent down.
