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Bitcoin Bottom: As Easy as Pi?

In this episode of NewsBTC’s daily technical analysis video, Compare historical Bitcoin bottoms and tops with the Pi Cycle Bottom and Pi Cycle Top indicators. We also delve into a recent comment from John Bollinger, the creator of his band Bollinger.

Watch the video below.

Video: Bitcoin Price Analysis (BTCUSD): Sept. 9, 2022

This video details the Bitcoin market cycle using the Pi Cycle Bottom indicator and other tools. A recent exchange between Tony “Bull” and the creators of the Bollinger Bands is also a topic of discussion and corresponding analysis.

Is the bottom of Bitcoin as easy as pie?

The Pi Cycle Bottom indicator fought back in July, but price action retested the second low. Looking back in the past, it is visually clear that the tool has been fairly accurate in its top and bottom signals.

For added reassurance, we used technical indicators such as the Relative Strength Index and LMCD. As a reminder, LMACD is the logarithmic version of MACD and provides signals over longer timeframes that allow for better cycle-to-cycle comparisons.

Bearish momentum has run out at exactly the same point in the last two weekly timeframe market cycles. This almost coincided with the firing of the pi cycle trough indicator. The RSI has also reached oversold levels in both previous instances. Overlaying a few circular tools will give you what looks like a pattern.

A historical look at past Pi cycle Bottom and Top signals. | Source: BTCUSD on TradingView.com

Examine Bollinger Bounce

Bollinger Bands have been behaving like setups in the past recently. The most recent first time he bottomed out at $29,000, but it eventually collapsed after being revisited this year.

The last major bottom also had a similar but less pronounced RSI bullish divergence. The current setup is also similar to his October 2019 “China Pump,” where Bitcoin rose more than 40% of his in less than 72 hours.

A similar move of this magnitude would push the top cryptocurrency by market cap to over $26,000 per coin by Monday afternoon. Warning The current setup lacks the ‘squeeze’ needed for ‘head fakes’. This is a term specific to the wave on which Bollinger Bands operate.

BTCUSD_2022-09-09_14-18-47

Is this a similar setup? | Source: BTCUSD on TradingView.com

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Featured image from iStockPhoto, Charts from TradingView.com



Bitcoin Bottom: As Easy as Pi?

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