A crypto analyst using the pseudonym @cryptocupra has introduced a new technical indicator for predicting Bitcoin's price floor. The so-called '23-Bar Theory' suggests that a pattern of 23 monthly bars on a Bitcoin chart has historically marked the end of bear cycles. The analyst claims this pattern accurately predicted bottoms in the 2014, 2018, and 2022 bear markets.
The theory is based on analysis of Bitcoin's 1-month price chart. It attempts to quantify the duration of market downturns by counting the number of monthly price bars from peak to trough. The pattern's apparent accuracy across three previous cycles has drawn attention from traders looking for signals of a market reversal.