The bitcoin price indicator marking 2015 and 2018 lows are showing up

The bitcoin price indicator marking 2015 and 2018 lows are showing up

Bitcoin (BTC) could see a huge rally in price in the coming months, based on an indicator that led to marked market declines in 2015 and 2018.

What is the Bitcoin Pi Bottom Cycle Indicator?

The indicator is called “Pi Cycle Bottom”, and has a simple 471-day moving average (SMA) and a 150-period exponential moving average (EMA). Also, the 471-day SMA is multiplied by 0.745; the yield is matched with the 150-day EMA to predict the bottom of the primary market.

In fact, every time the 150-day EMA broke below the 471-day SMA, it marked the end of the bitcoin bear market.

For example, in 2015, the crossover coincided with the establishment of bitcoin near $ 160 in January 2015, followed by almost 12,000% towards $ 20,000 in December 2017.

Weekly chart of BTC / USD pair price with “Pi Cycle Bottom” indicator. Source: Trade View

Similarly, it was the second 150- and 471-day moving average crossing in history that signaled the end of the 2018 bear cycle. It also followed a 2,000% price rally – from nearly $ 3,200 in December 2018 at $ 69,000 in November 2021.

Only the third time in history

This week, the 150-day bitcoin EMA (at $ 32,332 from July 12) is expected to close below its 471-day EMA (at $ 32,208), marking the third low Pi cycle in its history.

The BTC / USD pair’s weekly price chart showing the next possible low in the cycle. Source: Trade View

The crossover appears to be moving around $ 20,000, after a price correction of more than 75% from the all-time high of $ 69,000.

Read Also: Bitcoin Price Could Hit The Bottom At $ 15,500 If It Repeats This Level Of All-Time Support

The BTC / USD pair has been flirting with this level for almost a month, and the latest survey from MLIV Pulse showed that its price is more likely to fall towards $ 10,000 than it will bounce towards $ 30,000.

Fears are rising due to the continued carnage in the cryptocurrency market, led by the bankruptcy of some high – profile companies.

Pulse MLIV survey results on next bitcoin trend. Source: Bloomberg

Meanwhile, the policies of central bank intermediaries aimed at removing excess liquidity from the economy have distorted investors.

However, bitcoin could be back to at least $ 30,000 if the bottom fractal is true. The temporary upside target is at the same time as the 0.236 Fib line of the Fibonacci chart drawn between the $ 69,000 high and the $ 17,000 low as seen in the chart above.

The views and opinions expressed herein are those of the author only and do not necessarily reflect the views of All investments and trades involve risk. You should do your own research before making a decision.

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