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Monday, December 5, 2022
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    HomeBitcoinBitcoin Bottoms: As Easy As Pi?

    Bitcoin Bottoms: As Easy As Pi?

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    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 Worth Evaluation (BTCUSD): September 9, 2022

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

    Are Bitcoin Bottoms As Straightforward As Pi?

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

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

    Bearish momentum ran out of steam at the very same level prior 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 have now what seems to be a sample.

     

    BTCUSD_2022-09-09_14-16-56

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

     

    Analyzing The Bollinger Bounce

    The Bollinger Bands had been just lately behaving as previous setups, with the latest being the underside at $29K the primary time, earlier than it finally breaking down after it was revisited this yr. 

    The final main backside additionally had an identical, but much less pronounced bullish divergence on the RSI. The present setup additionally appears to be like much like the October 2019 “China Pump” the place Bitcoin climbed greater than 40% in beneath 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 instrument’s creator, John Bollinger, warns that the present setup lacks the mandatory “squeeze” for a “head faux” – terminology that’s particular to the wave the Bollinger Bands behave.

    BTCUSD_2022-09-09_14-18-47

    Is that this an identical setup? | Supply: BTCUSD on TradingView.com

    Be taught crypto technical evaluation your self with the NewsBTC Buying and selling Course. Click here to entry the free instructional program.

    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-about funding recommendation.

    Featured picture from iStockPhoto, Charts from TradingView.com





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