In this episode of NewsBTC’s daily technical analysis videos, we evaluate previous Bitcoin bottoms and tops utilizing the Pi Cycle Bottom and Pi Cycle Top indicator. We additionally dive into current feedback from John Bollinger, creator of the Bollinger Bands.
Take a take a look at the video beneath:
VIDEO: Bitcoin Price Analysis (BTCUSD): September 9, 2022
This video offers an in depth take a look at Bitcoin market cycles utilizing the Pi Cycle Bottom indicator and different instruments. A current change between Tony “The Bull” and the creator of the Bollinger Bands can also be a subject of dialogue and corresponding evaluation.
Are Bitcoin Bottoms As Easy As Pi?
The Pi Cycle Bottom indicator fired again in July, however worth motion retested lows for a second time. Looking again throughout historical past, it’s visually clear that the device has been pretty exact in its high and backside alerts.
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 alerts throughout excessive timeframes that permit for higher comparability from cycle to cycle.
Bearish momentum ran out of steam at the very same level prior to now 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 cases. Layer in some cyclical instruments, and we’ve what seems to be a sample.
A historic take a look at previous Pi cycle Bottom and Top alerts. | Source: BTCUSD on TradingView.com
While everyone seems to be extremely bearish and anticipating new lows in #Bitcoin, instruments with 100% success price counsel 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
Examining The Bollinger Bounce
The Bollinger Bands have been not too long ago behaving as previous setups, with the newest being the underside at $29K the primary time, earlier than it finally breaking down after it was revisited this yr.
The final main backside additionally had an identical, 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 below 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. However, the device’s creator, John Bollinger, warns that the present setup lacks the mandatory “squeeze” for a “head fake” – terminology that’s particular to the wave the Bollinger Bands behave.
Is this an identical setup? | Source: BTCUSD on TradingView.com
It wasn’t a correct Squeeze so it may well’t be a Head Fake.
But, if we reverse tomorrow it could possibly be good commerce.— John Bollinger (@bbands) September 6, 2022
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Featured picture from iStockPhoto, Charts from TradingView.com
