In this episode of NewsBTC’s daily technical analysis videos, We compare the tops and bottoms of Bitcoin using both the Pi Cycle Bottom indicator and Pi Cycle Top indicator. John Bollinger is the creator of Bollinger Bands. We dive in to his recent comments.
Have a look below at the video.
VIDEO: Bitcoin Price Analysis (BTCUSD): September 9, 2022
This video gives a comprehensive look at the Bitcoin market cycles, including how to use the Pi Cycle Bottom indicator as well as other tools. A recent exchange between Tony “The Bull” and the creator of the Bollinger Bands is also a topic of discussion and corresponding analysis.
Is Bitcoin bottom as easy as Pi?
Pi Cycle Bottom was fired in July. However, price action reached new lows again for the second time. Visually, the Pi Cycle Bottom indicator has always been very precise when it comes to its bottom and top signals.
Relative Strength Index (LMACD) and other technical indicators were used to further assure our confidence. The LMACD, which is the logarithmic equivalent of the MACD provides signals over long time frames that enable better comparisons from cycle to cycle.
At the same time in two previous market cycles, on the weekly timeframes. This coincided closely with the firing the pi cycle bottom indicator. In both instances, RSI reached above-sold levels. Add some cyclical tools to create what looks like a pattern.
Historical look at the Top and Bottom signals of past Pi cyclesSource: TradingView.com - BTCUSD | Source: BTCUSD on TradingView.com
— Tony “The Bull” Spilotro (@tonyspilotroBTC) September 9, 2022
Reviewing the Bollinger Bounce
Bollinger Bands behaved in similar ways to the last time. The bottom was at $29K for the first time. It then eventually broke down when it was retested this year.
Similar, but less pronounced, bullish divergence was also seen at the last major bottom. The setup also looks similar to the October 2019 “China Pump” where Bitcoin climbed more than 40% in under 72 hours.
If a similar move were to be made, the largest cryptocurrency market capital would rise to over $26,000 per coin on Monday afternoon. However, the tool’s creator, John Bollinger, warns that the current setup lacks the necessary “squeeze” for a “head fake” – terminology that is specific to the wave the Bollinger Bands behave.
This is a comparable setup.Source: BTCUSD at TradingView.com | Source: BTCUSD on TradingView.com
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Featured image taken from iStockPhoto. Charts taken from TradingView.com