BTC 4day analysis vs Market Cipher B - What is likely
I have plotted the 4day BTCUSDT price action, and have Market Cipher B plotted below.
Section A: higher highs on price and higher MCB hills
Price kept rising, and so did the peaks of the MCB hills
Section B: We made a higher high on the price,
but the MCB hills had a lower high. This divergence indicated that there was a reversal in play
Section C
Positive divergence:
Lower lows on price, higher lows on MCB hills = price exploded out of it
Section D:
Continuation of trend: Higher highs on price and MCB hills
Section E: Divergence again indicating a reversal of momentum
Higher high on price
Lower high on MCB hills
Section F: Medium bullish divergence formed:
Mostly equal lows with a higher lows on MCB hills
Section G: Where we are now
Price is dropping (37k to 20k), but there is no divergence yet.
How can we expect bitcoin to react from this?
If divergence is to be formed, bitcoin will need to print lower low while the MCB hills prints a lower high.
Currently, the MCB hills would print a lower low if the price suddenly recovered- meaning that there was no divergence and i think that that is unlikely.
Conclusion:
Bitcoin will need the price to rise to reset the MCB hills - target 25k
then a drop in price, probably close to the previous low of 17600.
This would allow for a higher low to be printed on the MCB hills, and potentially marking the bottom of the current cycle.
Strong bullish divergence would then be set
Section A: higher highs on price and higher MCB hills
Price kept rising, and so did the peaks of the MCB hills
Section B: We made a higher high on the price,
but the MCB hills had a lower high. This divergence indicated that there was a reversal in play
Section C
Positive divergence:
Lower lows on price, higher lows on MCB hills = price exploded out of it
Section D:
Continuation of trend: Higher highs on price and MCB hills
Section E: Divergence again indicating a reversal of momentum
Higher high on price
Lower high on MCB hills
Section F: Medium bullish divergence formed:
Mostly equal lows with a higher lows on MCB hills
Section G: Where we are now
Price is dropping (37k to 20k), but there is no divergence yet.
How can we expect bitcoin to react from this?
If divergence is to be formed, bitcoin will need to print lower low while the MCB hills prints a lower high.
Currently, the MCB hills would print a lower low if the price suddenly recovered- meaning that there was no divergence and i think that that is unlikely.
Conclusion:
Bitcoin will need the price to rise to reset the MCB hills - target 25k
then a drop in price, probably close to the previous low of 17600.
This would allow for a higher low to be printed on the MCB hills, and potentially marking the bottom of the current cycle.
Strong bullish divergence would then be set