It is unquestionably crucial to continuously grow and improve present indicators as these resources update with new lines of code over time, much as they do when they attain new awareness levels for bitcoin assets. The most recent occurrence of the Top Indicator of Pi-Cycle was on May 12, 2021, and it successfully signalled market and local peaks within 3 days.
If it were possible to determine the cycle/local top of each cycle, a comparable analogy could be used to determine the price bottom for bitcoin.
Top Pi Cycle indicator is well-known among those who are interested in cryptocurrencies since it has magically anticipated the peaks of multiple prior bull markets.
Few people are aware that there is a concept opposite to this one called the Bottom Pi Cycle, which has some history of attempting to predict the bottom of a downward market.
Also Read: What is Bitcoin leverage trading?
What is Bottom Pi Cycle?
As opposed to the Top Pi Cycle, the Bottom Pi Cycle is the inverse. The correlation between the 150 Exponential Moving Average and 471 Simple Moving Average is considered to be bearish.
Although not particularly elegant, this architecture was quite successful historically. It appears that in two prior bear markets, the Bottom Pi Cycle indicator may have correctly identified the precise location of the absolute base.
It was on January 16th, 2015 when the 150 Exponential Moving Average first deviated below the 471 Simple Moving Average. When this happened, it had only been two days since the price of BTC had fallen to an all-time low of $152.
The identical signal was produced by the Bottom Pi Cycle a second time on 16th December in 2018. The previous bear market’s absolute bottom, which was $3122, was reached just one day before this. Another bearish crossover of the two moving averages is about to occur, which will be the third indication in history.
Also read: Risks of trading cryptocurrencies
Potential Drawback of the Pi-Cycle Bottom Indicator
When the two moving averages cross, the indications could easily become invalidated if Bitcoin does not immediately bottom.
When will the price of Bitcoin drop the most?
Bitcoin may soon reach the bottom of this bear market if the association between the junction of the 2 moving averages and the base of the BTC price holds true throughout this cycle. The latest capitulation phase’s distinctive rapid decrease has already started on the 150 Exponential Moving Average at this time.
A crossing is predicted during the next few days. An analyst in the cryptocurrency market published his own forecast for the intersection date and potential base for Bitcoin.
e predicted that the crossing will take place in July 2022, using the movement trajectories of the two curves.
If this happened, the Bottom Pi Cycle would produce a signal in exactly 15 days that would have provided a fairly accurate indication of the base of the BTC price in the prior two rounds.
Another researcher went one step farther by combining a fractal analysis of earlier cycles with the possible signal from the Bottom Pi Cycle.
According to him, a probable Bitcoin bottom in the near future would be consistent with comparisons to earlier cycles.
The analyst takes into account the post-all-time high correction phase for the entire time beginning in April 2021.
It also includes the most recent ATH, which was attained on November 10 at $69,000. Even though the BTC price was technically higher at the time, a variety of technical and on the chain indicators show that a bear market was already well underway.
Perhaps this is also the cause of the Top Pi Cycle’s inability to produce a correct signal.
If this is the case and the BTC market correction has actually been going on for more than a year, then we can indeed anticipate the long-term slump coming to an end shortly. Another layer of coincidence that can increase the likelihood of this event is the Bottom Pi Cycle indicator.
