Home Crypto Bitcoin bottoms next month according to this indicator

Bitcoin bottoms next month according to this indicator

If you’ve been trading cryptocurrencies like bitcoin (BTC) lately, you probably know how difficult it is to predict where the bottom of a price is.† And even when the bottom seems to have been reached, the price can still fall through it later. Even now it is very difficult to say whether bitcoin has bottomed out or is falling even deeper in the near future. This well-known indicator indicates that bitcoin may not reach its bottom until next month.

The PI Cycle Indicator For Bitcoin

This Pi Cycle indicator is horribly good at ‘predicting’ where a bottom is for bitcoin, although of course this tool can’t really predict the future. The indicator is based on the moving averages of different lengths. There are two versions of this indicator, one for the top and one for the bottom† The one for the bottom uses the 471 simple moving average (SMA) and the 150 exponential moving average (EMA). As the name suggests, the indicator is strongly related to pi, an infinite number rounded to 3.14159. The ratio between the two moving averages is exactly pi. This PI Cycle indicator has been very accurate in finding the bottom so far.

The peaks and bottoms that the Pi Cycle indicators estimated were not far from the actual bottoms. Source: TradingView.

When does bitcoin hit bottom?

Now the key question that everyone is waiting for: when will bitcoin reach its bottom? The Pi Cycle indicator uses average trend lines and if you cross that line you can see where they might be intersecting. That’s exactly what crypto analyst Plan C did recently using the 10-day SMA. The lines would then intersect on July 9, what possibly suggesting that bitcoin then bottoms out. That is of course a rough estimate based on an average trend and the market does not necessarily have to play out that way. Nevertheless it is a very interesting fact!

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