This week, the indicator marking the bottom of 2015 and 2018 came to light. So, is this a signal from the bottom of Bitcoin and a resumption of the bullish trend in the crypto market?
What is a Bitcoin Pi Bike?
Bottom of the Pi Series, is an indicator that includes simple moving average 471 days and the exponential moving average 150 periods. The simple moving average increases by 0.745. The yield is compared with the EMA to predict the bottom. Until then, as soon as the 150 EMA period fell below the 471 MA, it marked end of bear market for bitcoin.
For example in 2015, the crossing occurred at the same time the bottom of Bitcoin at around $ 160. Then we saw a nearly 12,000% bullish rally pushing the price to $ 2,000 in December 2017.
The second trasover came at the end of the 2018 bear market. This resulted in a 2000% bull rally this time from $ 3,200 in December 2018 to almost $ 69,000 in November 2021.
Crossing this week for the 3rd time in history
This week, 150 Bitcoin EMAs are close to crossing below the 471 day moving average that would give us the third bottom of the Pi Cycle The history. The intersection appears as Bitcoin costs about $ 20,000, after correcting over 75% of its ATH for $ 69,000. The BTC / USD pair is flirting with this level for almost a month, the latest MLIV Pulse survey suggests that its price is more likely to fall towards $ 10,000 than it will bounce towards $ 30,000.
The fear arises due to the more complex emerging market conditions, in particular with failure and bankruptcies some leading companies. During this time, central bank policies a focus on removing excess liquidity from the economy also contributed to investors.
However, Bitcoin could bounce to at least 30,000$, if the bottom is reached. The upside target is medium term at the same time as the 0.236 Fib line of the Fibonacci (taken from the high of $ 69,000 to the low of $ 17,000). The first step before a higher potential target.
Cibé one indicator The bottom of the market cannot be determined, the latter has manifested itself valuable in previous bear markets. We will take a close look at the coming weeks which will be crucial for Bitcoin and the crypto market as a whole.
Crypto-assets are a risky investment.
For more information on market conditions, find our article here.