Bitcoin

Bitcoin Bottoms: As Easy As Pi?

On this episode of NewsBTC’s daily technical analysis videos, we examine previous Bitcoin bottoms and tops utilizing the Pi Cycle Backside and Pi Cycle High indicator.  We additionally dive into current feedback from John Bollinger, creator of the Bollinger Bands. 

Check out the video under:

VIDEO: Bitcoin Value Evaluation (BTCUSD): September 9, 2022

This video supplies an in depth have a look at Bitcoin market cycles utilizing the Pi Cycle Backside indicator and different instruments. A current trade between Tony “The Bull” and the creator of the Bollinger Bands can be a subject of debate and corresponding evaluation.

Are Bitcoin Bottoms As Simple As Pi?

The Pi Cycle Bottom indicator fired again in July, however worth motion retested lows for a second time. Wanting again throughout historical past, it’s visually clear that the software has been pretty exact in its high and backside indicators.

For additional reassurance, we used technical indicators just like the Relative Power Index and LMACD.  As a reminder, the LMACD is the logarithmic model of the MACD, which supplies indicators throughout excessive timeframes that enable for higher comparability from cycle to cycle.

Bearish momentum ran out of steam at the very same level up to now two market cycles on weekly timeframes, which simply so occurred to coincide carefully with the pi cycle backside indicator firing. RSI additionally reached oversold ranges each earlier situations. Layer in some cyclical instruments, and we now have what seems to be a sample.

 

BTCUSD_2022-09-09_14-16-56

A historic have a look at previous Pi cycle Backside and High indicators. | Supply: BTCUSD on TradingView.com

 

Inspecting The Bollinger Bounce

The Bollinger Bands had been not too long ago behaving as previous setups, with the newest being the underside at $29K the primary time, earlier than it in the end breaking down after it was revisited this yr. 

The final main backside additionally had the same, but much less pronounced bullish divergence on the RSI. The present setup additionally appears much like the October 2019 “China Pump” the place Bitcoin climbed greater than 40% in underneath 72 hours.

An analogous transfer of such magnitude would take the main cryptocurrency by market cap to greater than $26,000 per coin by Monday afternoon. Nevertheless, the software’s creator, John Bollinger, warns that the present setup lacks the mandatory “squeeze” for a “head pretend” – terminology that’s particular to the wave the Bollinger Bands behave.

BTCUSD_2022-09-09_14-18-47

Is that this the same setup? | Supply: BTCUSD on TradingView.com

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Comply with @TonySpilotroBTC on Twitter or be a part of the TonyTradesBTC Telegram for unique each day market insights and technical evaluation training. Please notice: Content material is instructional and shouldn’t be thought of funding recommendation.

Featured picture from iStockPhoto, Charts from TradingView.com



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