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 Prime indicator. We additionally dive into current feedback from John Bollinger, creator of the Bollinger Bands.
Check out the video beneath:
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 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. Trying again throughout historical past, it’s visually clear that the instrument has been pretty exact in its prime and backside indicators.
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 indicators throughout excessive timeframes that enable for higher comparability from cycle to cycle.
Bearish momentum ran out of steam at the very same level previously two market cycles on weekly timeframes, which simply so occurred to coincide intently with the pi cycle backside indicator firing. RSI additionally reached oversold ranges each earlier situations. Layer in some cyclical instruments, and we’ve got what seems to be a sample.
A historic take a look at previous Pi cycle Backside and Prime indicators. | Supply: BTCUSD on TradingView.com
Whereas everyone seems to be extremely bearish and anticipating new lows in #Bitcoin, instruments with 100% success charge recommend the worst is behind us and are in sync with previous cycle bottoms. pic.twitter.com/mrk0zJFFhK
— Tony “The Bull” Spilotro (@tonyspilotroBTC) September 9, 2022
Inspecting The Bollinger Bounce
The Bollinger Bands had been just lately 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 an analogous, but much less pronounced bullish divergence on the RSI. The present setup additionally seems to be much like the October 2019 “China Pump” the place Bitcoin climbed greater than 40% in beneath 72 hours.
The same transfer of such magnitude would take the main cryptocurrency by market cap to greater than $26,000 per coin by Monday afternoon. Nonetheless, 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.
Is that this an analogous setup? | Supply: BTCUSD on TradingView.com
It wasn’t a correct Squeeze so it may’t be a Head Pretend.
However, if we reverse tomorrow it might be good commerce.
— John Bollinger (@bbands) September 6, 2022
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Featured picture from iStockPhoto, Charts from TradingView.com