Bitcoin Bottoms: As Simple as Pi?
In this episode of NewsBTC’s daily technical analysis videos, we compare past Bitcoin bottoms and tops using the Pi Cycle Bottom and Pi Cycle Top indicator. We also delve into recent comments from John Bollinger, the creator of Bollinger Bands.
Check out the video below:
VIDEO: Bitcoin (BTCUSD) Price Analysis: September 9, 2022
This video provides a detailed look at the Bitcoin market cycles using the Pi Cycle Bottom indicator and other tools. A recent exchange between Tony “The Bull” and the creator of Bollinger Bands is also a topic of discussion and corresponding analysis.
Is Bitcoin Bottoms as easy as Pi?
The Pi Cycle Bottom indicator was fired in July, but price action retested the lows for a second time. Looking back at the history, it is visually clear that the tool has been quite accurate in the top and bottom signals.
For additional security, we used technical indicators such as Relative Strength Index and LMACD. As a reminder, the LMACD is the logarithmic version of the MACD, which provides signals over high timeframes that enable better comparison from cycle to cycle.
Bearish momentum ran out at exactly the same time in the last two market cycles on weekly time frames, which coincidentally coincided closely with the pi cycle bottom indicator. The RSI also reached oversold levels in both previous cases. Throw in some cyclic tools and we have what appears to be a pattern.
A historical look at past Pi cycle Bottom and Top signals. | Source: BTCUSD on TradingView.com
While everyone is incredibly bearish and expecting new lows #Bitcointools with a 100% success rate suggest that the worst is behind us and are in sync with previous cycle lows. pic.twitter.com/mrk0zJFFhK
— Tony “The Bull” Spilotro (@tonyspilotroBTC) 9 September 2022
Examining the Bollinger Bounce
Bollinger Bands recently behaved like previous setups, with the last one bottoming out at $29K the first time around, before finally collapsing after retracing this year.
The last major bottom also had a similar but less pronounced bullish divergence on the RSI. The current setup also looks like the “China Pump” of October 2019, where Bitcoin climbed more than 40% in less than 72 hours.
A similar move of such magnitude would take the leading cryptocurrency by market capitalization to more than $26,000 per coin by Monday afternoon. But the creator of the tool, John Bollinger, warns that the current setup lacks the necessary “hug” for a “head fake” – terminology specific to the wave Bollinger Bands behave.
Is this a similar setup? | Source: BTCUSD on TradingView.com
It wasn’t a real Squeeze, so it can’t be a Head Fake.
But if we reverse tomorrow it could be a nice trade.— John Bollinger (@bbands) 6 September 2022
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Featured image from iStockPhoto, Charts from TradingView.com
